Our 9th Benchmarking Report considers data from 2021 as well as survey responses from across country.
are planning to increase staff numbers in 2022.
of firms plan to change how they use IT.
Total fee income decreased in all but the 5-10 partner group.
Net profit % increased in the majority of firms.
The data featured in this report includes part of a year when the country was still working in lockdown during the original outbreak of the COVID-19 pandemic. In some firms it will therefore represent how well the business dealt with the transfer to working from home, how soon offices reopened, what changes were forced upon those legal practices and what strategic decisions were made.
Across the legal sector there is optimism for 2022; there is new work flowing in across all disciplines and a growing demand for legal services. Efficiencies have been taken from the COVID-19 pandemic and these will continue to be incorporated into future working practices.
However, a critical issue is staffing the demand for work. Higher salaries, inflationary pressures and competition for staff will get harder in 2022. Firms will need to do more to retain their staff and look at ways to compete in the recruitment market in order to grow.
Total fee income was negative in % terms across all sized firms except 5-10 partners who recorded an increase of 4%.
Income per fee earner varied, with 11-25 partner firms seeing the largest increase.
Ratio of fee earners to Equity Partners fell across all firms except 5-10 partner group.
2022 is seeing more pressure on staff retention which impacts the chargeable hours pool.
Professional Practices Partner
If you are looking for further information regarding our 2022 Legal Benchmarking report, we will be happy to help.
Karen Hain, our Professional Practices Partner, heads up the MHA sector team and works with legal firms on a daily basis.
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