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Hybrid workingLegal sectorLatest NewsFlexible workingSectors

Virtual law firms see 38% jump in recruitment

by Adam McCulloch 6 Dec 2021
by Adam McCulloch 6 Dec 2021 Photo: Shutterstock
Photo: Shutterstock

Decentralised legal practices for which lawyers work remotely have seen a 38% rise in the numbers of lawyers working at them in the past year.

In late 2020, 1,355 lawyers worked for such virtual firms, a number that has risen to 1,875 by autumn of 2021. In 2019, 1,272 worked for such firms.

Hazlewoods, which carried out the research, said the increase reflected the dramatic shift towards hybrid and flexible working arrangements.

The accountancy/consulting company defined a “virtual” law firm as a decentralised legal practice where lawyers worked remotely and used shared services provided by a central hub. The firms themselves may not self-define as virtual but offer lawyers more flexibility than traditional firms while still providing a central hub with service functions such as compliance, accounting and administration.

According to Hazlewoods, Covid-19 has led to a shift in attitudes towards working arrangements with lawyers now more likely to have experience of an improved work-life balance. Virtual law firms tended to offer lawyers more freedom over the work they took on, while being able to carry out their work remotely, it stated.

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Virtual law firms have benefited from the greater acceptance of virtual meetings, enabling clients to manage their legal affairs from anywhere in the world without a loss of service quality.

They also have lower overheads, as they pay for far less office space. Greater profit margins resulted from this, which could be used to put into lawyers’ wages.

Hazlewoods said some of the biggest increases in number of lawyers over the last year were at Nexa Law (105 lawyers in 2021, 54 in 2020); Keystone (456, up from 350); and Setfords (up from about 190 to 350 in 2021).

Nexa Law is Shropshire-based virtual firm but also has a WeWork office in London.

Keystone is a top 100 firm with an address in Chancery Lane and Meeting Rooms in Newcastle, Bristol and Leeds.

James Knight, CEO and founder at Keystone Law, said: “Keystone Law is actually not a virtual law firm. We have a central office on London’s Chancery Lane which houses our 50 strong support team (administration, compliance, finance, marketing etc), 10 meeting rooms and space for lawyers to work permanently or to hot-desk. Senior lawyers are free to work where they choose. The physical interaction that our lawyers have with each other, with clients and with their business contacts is very real, but it is fair to say that we do have long corridors.

“Keystone’s modus operandi is so attractive to the modern lawyer because it delivers all the support and facilities that they require to do their job, while combining that with a level of freedom and flexibility that conventional firms do not afford. It enables them to focus on what they do best and enjoy most: being lawyers, as well as freeing them from a world of management responsibilities, commuting and office politics.”

Setfords, is a top 200 firm has offices in Guildford and Chancery Lane plus locations in numerous smaller towns across the UK.

Jon Cartwright, partner at Hazlewoods, said: “The virtual law firm model has been given an unexpected boost by Covid, even with more traditional firms returning to their offices. It’s clear that what was once considered an outlier in the legal industry is quickly becoming part of the mainstream.”

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He added: “Many clients have accepted that liaising virtually works just as well as in-person meetings. Some may say the benefits are even greater as it offers both lawyers and their clients much needed flexibility while reducing the need for travel and office space.”

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Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

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