When it comes to 2024, some experts have been forecasting downturns for the legal industry.
But experts say this isn’t the time to panic. Instead, think of 2021 and 2022 as a bubble. New opportunities to improve the field will arrive in 2024.
This year will be a time for sophisticated law firms to thrive, through the adoption of artificial intelligence to better business practices and working on simmering cultural issues, according to Kevin Iredell, chief marketing officer of Lowenstein Sandler LLP and current president of the Legal Marketing Association.
Here’s what to expect for the law field in 2024.
Hiring Remains Tight in 2024
In 2023, client demand, revenue and hiring were down. That probably will continue in 2024, says Nikia Gray, executive director of the National Association of Law Placement, or NALP.
Rather than a significant downturn, this is likely a market correction after 2021’s record revenues and over-hiring. Hiring will likely return to the levels seen between 2016 and 2019, then stabilize after that, Gray says.
Compensation Stays Flat
At the peak of hiring, when large firms announced salary increases, raises would quickly cascade throughout the industry, Gray says.
But a few Big Law firms increased salaries in 2023 — with first-year associate salaries at $225,000 — and there hasn’t been a rush to match them. Instead, it will take years before salaries rise across the board, Gray says.
High Billable Hours Remain
Pressure to meet high billable hours continues, but there are new options to help meet the requirements.
More firms are giving lawyers credit for working on leadership, firm culture, attorney mentorship and other activities benefitting the firm as a whole, according to Yakiry Adal, managing director of diversity, equity and inclusion at Goodwin Procter LLP.
Lawyers Take Control of Their Career Progression
The traditional “up-or-out” partnership track leads firms to give up talent they can no longer afford to lose. Instead, law firms are increasingly allowing lawyers to choose positions that meet the lawyers’ goals, rather than the firms’ priorities. (For example, an attorney might decide to remain in an “of counsel” role.)
While these changes are a boon for lawyers with families or other priorities, they are a double-edged sword, preserving partnership tracks and lessening pressure to fix larger cultural issues, Adal says.
[Related:How to Navigate Work-Life Balance at a Law Firm]
Artificial Intelligence Enters the Practice and Business of Law
Firms will debate artificial intelligence throughout the year, even as they use it.
One significant shift likely to occur in 2024: Big Law firms will move from evaluating their past performance using big data to predicting their future using AI, Iredell says.
Firms may begin using AI in practice management and developing marketing campaigns. The most sophisticated may benefit from “prompt engineering” — knowing what requests will yield the best results.
They’ll soon include AI in substantive work as well, Iredell says.
Some practices already use Lex Machina, an AI program that predicts a client’s likelihood of success in a case overall — and even on the chance of winning specific motions in front of their judge.
Gen Z Lawyers: a ‘Precipice of Cultural Change’
The introduction of Generation Z professionals means the legal field is “on a precipice of cultural change over the next five to 10 years,” Gray says.
Gen Z’s influence will be similar to the impact of baby boomers, who drove law firm culture from local offices to firms that are regional, national and even global in scale, she says.
When Gen Z demands better work-life balance and voices cultural concerns, firms need to realize that typical Gen Z workers plan to change jobs frequently during their careers. In fact, of Gen Z professionals already in the workforce, 66% plan on remaining with a current employer for two years or less, and 83% consider themselves to be job hoppers, quickly switching to new positions, according to a survey of 1,100 U.S.-based workers by ResumeLab. So firms can either prepare for regular turnover or take steps to reduce it, Gray says.
Gen Z Attorneys May Need Etiquette Classes
At the same time, firms are concerned about training Gen Z attorneys — particularly when they’re working in remote environments, Adal says.
Firms report to NALP that junior attorneys who went to law school (via Zoom) during the COVID-19 pandemic know blackletter law, but they lack interpersonal skills and need more emotional support. Many struggle with basic office decorum — to the point that firms are holding etiquette classes for them, Gray says.
[Related:18 Tips to Successfully Interview at a Law Firm]
Diversity, Equity and Inclusion Changes Focus
Despite the Supreme Court decision ending racial affirmative action in college admissions and related lawsuits against a few firms, law firms are still committed to diversity, Gray says.
Moreover, firm programs already take an expansive view of diversity, as the underrepresented individuals they support include women, veterans, first-generation college students and graduates, those with disabilities, the LGBTQ community, and other groups, Gray says.
There is a change coming in 2024 from the firms themselves. Firms are moving away from compliance to a culture of inclusive leadership. Diversity efforts must be transparent and aligned with the firms’ larger goals, with metrics and accountability, Adal says.
If they learned anything during the COVID-19 pandemic, it’s that firms should take a holistic approach to inclusivity, Adal says.
Leaders should design policies that ensure everyone participates to their full ability — for example, providing individuals with accommodations such as remote work.
And leaders should promote a sense of psychological safety. Having done so, individuals thrive and firms become more innovative and adaptable.
“When we design inclusively, everyone benefits,” Adal says.
[Related:What to Know About Diversity and Inclusion at Law Firms]
Hybrid and Remote Work Schedules Are In
While a few firms push for full-time office work, “flexible work arrangements are here to stay,” Adal says.
Firms differ on what that means, but generally speaking, those with flexible scheduling have an advantage in recruitment and talent management. NALP surveys have revealed that hybrid work is a bigger predictor of career satisfaction than compensation, Gray says.
Remote Events Are Out
Get out the suitcases as 2024 looks to have a full schedule of in-person conferences, Iredell says.
Attorneys are frustrated with virtual meetings and recognize the value of direct contact, so firms should plan on more in-person meetings, social events and traveling for conferences, he says.
It’s Time to Dress for Success
In New York City, lawyers are more casual than ever, but attire still matters when conveying professionalism, Iredell says.
In the office, a sports coat is the baseline, although a jacket is the minimum for a client meeting. For court appearances or external meetings, a suit and tie (or equivalent) are de rigueur.
Expect a managing partner, the face of the firm, to always wear a suit, or at least have one hanging in the office, just in case.
It’s an apt metaphor for success in 2024: The tasks at hand dictate one’s approach more than hierarchy or custom, and be ready for any curveballs that come your way.
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Law Firm Trends for 2024 originally appeared on usnews.com
