The New Hybrid Office Model for Law Firms Is Here to Stay

“In January 2018, Hanson Bridgett’s law firm San Francisco headquarters occupied three floors at 425 Market Street. The lease on that space cost the firm $1.6 million per floor per year.”

This story from the Harvard Business Review represents a big hurdle law firms face. In the last few years, rents have gone significantly up, making law firm owners wonder if it would make more sense financially to free up the budget and go fully remote.

Legal professionals engaged in a focused discussion over documents in a stylish coworking space, showcasing a collaborative environment tailored for lawyers and law firms.

But that was not the solution either, as many law firms found. For example, big law firms in the UK started reverting to full-time office attendance, reporting a significant drop in productivity, client rapport, networking, and even employees’ mental health with remote work. One of these firms, Winn Solicitors, also reported, “Not everyone liked the decision to head back into the office, so we lost a few senior lawyers as the majority of other law firms in the North East do offer hybrid working.”

There is also a clear generational divide. The 2022 Practice Forward Report by The American Bar Association found that 44% of lawyers practicing 10 years or less were more likely to leave their current job for one that offers a greater ability to work remotely. At the other end of the age spectrum, only 13% of those practicing over 40 years would leave their place of employment for the greater ability to work remotely.

More than three years after the COVID-19 pandemic started, the way lawyers work is changing forever, and people want options. There is not one generalized consensus about how remote work affects lawyers’ productivity and satisfaction. While some studies find that working from home increases productivity, other studies find that having no boundaries between work and life actually reduces productivity. While some studies find that workers feel more motivated working from home, other studies find that people’s mental health suffers when they stop those daily and spontaneous interactions with teammates and clients.

The Hybrid Model Is Here to Stay

Collier’s North America Law Firm Advisory Group Spotlight Report found that, in 2023, only one out of every five attorneys will return to the office full-time. The other 80% will embrace the hybrid model. Some lawyers will share offices with others, rotating office time with work-from-home time. Others will work mainly from home, attending the office only when they need it.

Not everyone is fully equipped to work from home. Some get distracted by their kids, are not so versed in digital technologies, and struggle with back pain, trying to work at the end of their beds.

Lawyers, unlike other staff, often have face-to-face client interactions and court appearances that require their physical presence in the office. Some functions like litigation support, document filing, and client meetings are also better fit for on-site collaboration. There is also the factor of perception: According to data from AM Law 25 firm McDermott Will & Emery, lawyers who come into the office more frequently tend to be viewed as “high performers” who take advantage of career development opportunities, soaking up opportunities to engage and connect with senior partners.

How the Hybrid Model Works in Practice

Here are some examples of law firms that have embraced the hybrid model, and what they are doing to make the transition smoothly:

  • Law firm Knights and Signature Litigation encourage their staff to attend the office five days per week, but allow employees to determine how much is needed. The rules are more flexible for people who need to commute long hours. “We trust our people to be where they need to be and do not prescribe rules about set times,” said CEO David Beech.
  • Law firm Vinson & Elkins announced a four-day in-office schedule, allowing their staff to work remotely on either Monday or Friday. Other law firms have found that their sweet spot is three days.
  • According to research conducted by Legal IT Insider in association with Philips, the most popular hybrid model is working more than half the week in the office (52% of respondents), with working less than half the week in the office (23%), and giving staff the option to choose their hours of working from home (23%).
  • Some law firms are more strict with office attendance with junior lawyers, so they can better learn from their peers. The same goes for new hires, regardless of their level of experience, so they can quickly integrate into the culture of the company.

Every law firm is unique and each team needs to experiment and see what works better for them.

Five Tips for Transitioning Into A Hybrid Work Arrangement

Here are five tips that can help any law firm transitioning into hybrid work to make it a success:

          1. Maintain Robust Security Protocols. According to LawYaw, around 29% of law firms experienced security breaches during the shift to virtual work. Recommendations include using firm-provided IT equipment, implementing VPNs, password vaults, and offering training on recognizing phishing scams.
          2. Get the Team In Sync. With hybrid models, the entire team needs to communicate more closely. Consider regular check-ins with each employee, making time for work-life balance discussions during briefings, and providing virtual invitations for all meetings and events. Encouraging in-person attendees to engage virtually also prevents isolation of remote team members.
          3. Engagement Strategies. Combatting loneliness among remote workers is crucial for maintaining team mental health and morale. Virtual events, personal updates during team meetings, and dedicated instant message channels for office chit-chat are recommended. Fostering a culture that discourages an ‘us and them’ mentality between virtual and in-person staff is essential.
          4. Document Management. Firms are advised to utilize new tools to reassess their document management systems, especially if disruptions occurred during the pandemic. Ensuring remote accessibility to crucial legal documents is essential for a seamless workflow.
          5. Focus on Impact, Not Just Productivity. Working remotely, it is important to prioritize the quality of meetings over quantity. Focus on the outcomes of interactions to create a more productive environment.

Working at an office and working from home have unique advantages, so it is important to design policies that suit your firm’s and your employee’s specific needs. And while new challenges will arise from this new setting, staying flexible and adaptable will also create new opportunities for a more productive, cost-effective, and engaging environment for lawyers.

Amata has a unique “office-as-a-service” model that allows law firms to seamlessly transition into a hybrid model, without losing the support services and productive environment a traditional office provides Our flexible plans and scalable solutions ensure you protect your profitability, while having access to modern offices that meet your exact needs.

Contact us today to schedule a tour of our locations. Discover how we can support your growth, whether you choose to work remotely, on-site, or opt for a hybrid model.

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The Strategic Advantages of Downtown Chicago

Chicago’s office building occupancy now sits at 55 percent, up from 13 percent at the height of the pandemic. This new data collected by Crain’s Chicago Business confirms a post-pandemic high in office building occupancy rates.

This is a nationwide trend. In Manhattan, the office occupancy rate “finally cracked 50% in recovery milestone”, this article from Crain explains. In fact, law firms signed more leases this year than ever before. The American Lawyer reported that law firm leasing activity through Q3 2023 nearly outpaced all of 2022 and, according to a recent report from brokerage firm Savills, a larger percentage of U.S. law firms expanded their office square footage in 2023 compared to last year.

“While other types of tenants are cutting space, the expansions this year show that law firms are saying that “office space continues to be very important,” said Tom Fulcher, chair of Savills’ legal tenant practice group;” this article on Reuters.com explained.

The legal industry continues to favor in-person work after the pandemic, and there is a growing sense of stability among law firm leaders that provides the confidence to invest in office space. This article will go deeper into one of the reasons why Amata clients continue to invest in office space – especially in downtown Chicago.

The Strategic Advantages of Downtown Chicago Office Spaces

Making strategic decisions about your office space can massively impact cash flow, talent attraction, and growth opportunities. Here are some of the reasons why Downtown Chicago emerges as an attractive choice with tangible value:

1. Economic Impact

Downtown Chicago serves as a major hub in the city’s economic landscape. According to a recent study, the central business district generates over $600 million annually in direct spending, and this economic activity can translate into increased opportunities for your firm, exposing you to more business and high-profile clientele.

2. Proximity to Legal Resources

Downtown Chicago is home to legal institutions like Courts, the City Clerk, and the Sheriff’s Offices. 60% of the city’s legal offices are also concentrated in this area. This creates a rich legal ecosystem, making it easier for small law firms to find talent and access court facilities and government offices.

3. Networking Opportunities

A study by the Chicago Chamber of Commerce found that over 80% of professional networking events in the city are hosted in the downtown area. For small law firm owners, an office in downtown is a centralized location to connect and do business, which facilitates valuable encounters with other legal professionals, potential clients, and business partners.

4. Cultural Amenities

The impact of cultural amenities on talent attraction is quantifiable. According to a survey by the National Association for Law Placement (NALP), 75% of legal professionals consider cultural amenities an essential factor when evaluating potential employers. Downtown Chicago’s vibrant cultural scene, with industry events and seasonal festivals like the Christkindlmarket (which attracts more than 1 million visitors each year), become another reason for small law firms to choose this location for office space.

5. Client Impressions

A recent survey conducted by Forbes Insights found that 75% of business executives believe a prestigious office location positively influences their perception of a company. An address in downtown Chicago not only impresses clients but also instills confidence and can potentially influence their hiring decisions.

6. Access to Top Talent

Chicago’s legal talent pool is vast and diverse. According to the American Bar Association (ABA), the city hosts over 45,000 active attorneys. Positioning your law firm in downtown Chicago attracts ambitious and highly driven professionals, with statistics showing that 65% of legal professionals prefer working in central locations for career opportunities and professional growth.

7. Convenient Transportation

Over 70% of the city’s transit lines converge in the central business district, making downtown Chicago a transportation hub. This means it will be easier for employees, clients, and partners to reach your office via public transportation (and spend less time in traffic!).

8. Brand Visibility

A study by the International Downtown Association found that businesses located in central districts experienced a 20% increase in foot traffic and a 15% boost in brand recognition. For small law firms seeking greater brand visibility, the impact of choosing a downtown location is quantifiable.

From economic impact to networking opportunities and talent attraction, choosing a downtown office can provide solo practitioners and small firm owners tangible benefits that impact their bottom line. And if you seek a more prestigious position in the competitive legal landscape of Chicago, this should be one of your top choices.

The question is, how can you access an office in downtown Chicago without being a big law firm yet? That is where our flexible and scalable office plans come in. Contact our team and we will tell you all about them.

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Law Firm Billing: How to Collect Payments in a Timely Manner

Billing can be a huge pain point for lawyers. In the 2023 Trends Report by Clio, it was found that 14% of billable hours never get invoiced and, from those that get invoiced, 11% never get paid by clients. This means a significant portion of most law firms’ profits never reach their bank account.

How can you, as a solo practitioner or law firm owner change this? Read on to discover one actionable tip to get paid in full, on time.

Timing Is Essential

In his book How to Start & Build a Law Practice, author Jay G. Foonberg talks about an essential concept that impacts billing: The Gratitude Curve.

Essentially, in most people approach lawyers when they are in a desperate situation. If there is a fit and they become clients, their immediate sentiment is relief. They’re glad to have a lawyer by their side.

As time passes, the client’s perception of the value reaches its peak. They couldn’t be more grateful for having their lawyer. And then, depending on the nature of the case and the duration of the trial, the “gratitude curve” starts to fall down.

Image credits: Clio Legal Trends Report

The longer the case moves away from a significant milestone, the more a client will feel like they no longer need their lawyer. It is the same with doctors, accountants, advertising agencies, and most professional service providers. If there is not a frequent demonstration of value, clients start to feel like ‘this is just another bill to pay’ and that they can solve the problem on their own (or with cheaper assistance).

So is there a solution? Here 3 strategic moves to make the most out of Foonberg’s Gratitude Curve.

Strategy #1: Bill up front and at the points of maximum perceived value

Needless to say, a client is more likely to pay their bill and see it as an investment when their perception of value is high. This means that bills should be sent up front, as soon as an important milestone is reached, or just before the clients need their lawyer to make the next strategic move.

While this may be common sense, Clio’s study found that 15% of clients never received a bill from their lawyer, and 28% of bills are sent weeks or even months after the work is done, reducing their chances of getting paid.

The solution is to bill clients right when their perceived value is at its highest, and always invoice all billable hours.

Strategy #2: Constantly Overdeliver

There is a concept in customer experience called the “wow” moment. This is when you enter a hotel and see that they left free water or a welcome letter in your room. By integrating these “micro experiences” into your engagements, the perception of value not only increases but can be preserved much longer.

Strategy #3: Simple Payments

Most clients want to pay their lawyer. However, a large portion of law firms are still sending bills by mail, only accepting checks, and not setting clear deadlines.

A bill should be easy to pay. And it pays to do so. In Clio’s 2023 Trends Report, it was found that firms using online payments on average collect 50% of their bills within 7 days of issuing them, while those not using online payments get paid in 15 days or more. This is twice the time it takes for a law firm to receive new funds and be able to reinvest for growth or pay the owner.

At the end of the day, work doesn’t finish until the invoice is fully paid and received. By billing up in a timely manner, keeping the perception of value high, and making it easy for clients to pay their bills, law firms can avoid cash flow problems and get compensated for all their hard work.

If you are having trouble keeping up with invoices and billing clients in a timely manner, a virtual assistant can help. Amata’s administrative assistants are trained in the legal industry and can support in any of these areas:

  • Email Management
  • Payroll, Billing, and Accounting
  • Database Management
  • Document Conversion and Management
  • Appointment Reminders and Scheduling
  • Legal Correspondence and Transcription
  • Legal Research
  • Live Virtual Receptionist

Our flexible plans allow you to pay for only the hours that you need, so that keeping your firm’s operations running smoothly doesn’t come with unnecessary overhead costs.

Click here to discover how our Virtual Assistants can assist with billing (and a whole lot more!)

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How to Stay Relevant in a Rapidly Changing Market

According to CB Insights, 35% of businesses fail because there is no market need. All the growth potential of your business lies in its ability to pivot and meet the dynamic needs of a rapidly changing world.

How can you do this in practical terms? It all comes down to a commitment to innovation and service, which is exactly what this article will showcase through Amata’s case study.

The Genesis of a Disruptive Business

Plato said that the mother of invention is a necessity, and this couldn’t be truer in Amata’s case. Amata began when our founder, Ron Bockstahler, was working 10 to 12 hours each day while managing the backend operations of law firms.

For decades he didn’t take two days off in a row and was a self-declared workaholic. One day, he decided to go on an RV adventure with his wife across all 50 states in America and 9 Canadian provinces. This quest for a better work/life balance expanded across 8 years, hundreds of memories, Ironman races, and eventually having 6 children.

What Ron realized is that he could continue growing his business while living life to the fullest. And that’s how our innovative “office-as-a-service” model was born.

Listening to Clients: The Key to Continuous Innovation

Our innovative ‘office-as-a-service’ model started as a response to the ever-changing landscape of technology, economic cycles, and team dynamics that affect law firms and professional service firms.

When the pandemic hit and lawyers had to stay home, Amata quickly rallied clerks to make daily visits to the Recorder’s Office, City Hall, Sheriff’s Office, Clerk’s Office and Assessor’s Office for our clients.

Despite starting as a traditional co-working space, we quickly expanded to include crucial services our clients needed to grow. This includes paralegals to assist you with court cases, either on a part-time, full-time, or hourly basis. It also includes administrative assistants, law clerks, and receptionists.

When a client is coming to the office to sign documents and you need Notary and witness services, Amata has you covered. When you are too busy to pick up your phone, our receptionists got you.

It takes a village to build a thriving business. It is normal to get so caught up in serving clients that you stop focusing on the operations of running a business. We make this easier for you.

It has now been more than 21 years since we committed to staying at the forefront of innovation and creating a turnkey solution that allows you to keep expanding your firm while protecting your profitability, client experience, and work/life balance.

Our secret? Putting our clients first, listening to their needs, and doing whatever it takes to create an environment where they can thrive both professionally and personally.

 

Maximum Value With Greater Flexibility

Understanding our client’s needs has become the backbone of our innovation. We regularly ask clients for feedback and survey them, so we can meet their needs as they evolve.

Our comprehensive support combines four separate industries into one, offering flexible options for greater total value:

1 – Office space

 We offer agreements that allow you to drop or add offices during the term of the contract, without penalty, resulting in true office flexibility.

Whether you just started your law firm, have a team of 10-20, or are ready to expand your big law firm with the flexibility to scale up or down, we have prestigious locations to suit your needs. No more letting long-term leases keep you from attracting top-tier clientele, enhancing your team’s productivity, and having a professional office that reflects your professionalism.

2 – Reception

 Virtual assistants are remote professionals who specialize in all those essential but routine tasks like scheduling, document management, and phone answering. Amata’s Live Virtual Assistants are trained in the legal industry, so they know how to manage urgent inquiries on your behalf and recognize when to filter a call.

With Amata’s live virtual receptionist, law firms receive customized phone answering services with receptionists that act as an extension of their law firm. This means you do not need to hire a full-time receptionist to enjoy the benefits of enhanced productivity, such as never missing a caller.

3 – Administrative assistants

 A virtual assistant can be an invaluable gatekeeper for your law firm, saving you time and reducing the anxiety and stress of running a law practice. Our pre-vetted professionals can help manage all office operations, so you don’t have to and can focus on billable hours.

Some of the tasks administrative assistants can take off your plate are phone and email management, scheduling meetings, confirming appointments, making travel arrangements, managing contact lists, updating CRM software, preparing reports as needed, filing and organizing important documents and files, creating presentations, and more!

4 – Legal support

Amata has created the back-office operations of an AM100 law firm, for solo and small law firms. Paralegals, paralegal assistants, law clerks, and virtual assistants all act as an extension of your law firm, without needing to become full-time hires.

Leveraging Amata’s experienced resources allows you to manage your law firm around your bottom line. When you aren’t paying for under-utilized staff on your payroll, your profits increase, along with your capacity to produce more work and gain new clients, without creating constraints on your time.

With the combination of scalable office plans and flexible support & staffing services, we create a new environment for law firms and professionals. One in which they can do their very best work, increase their profitability, and have the resources to enjoy life on their own terms.

Contact us today if you’d like to experience the Amata difference. And remember, in order to create a thriving business yourself, the key is placing your client’s success at the forefront of everything you do.

Discover our legal support staff for lawyers in Chicago.