What just happened?
National law firm Slater and Gordon have decided to close its London office to the remote working norm that is developing around the pandemic[1].
What does this mean?
In our previous article, we explored the implications of leasing office spaces in the pandemic. In this article, we consider the changes in office space requirements post-pandemic scenario. Freshfields, BCLP, and Cooley were among firms to move to modern office premises before the pandemic; this move has been unfortunately delayed and increased costs. The debate before the pandemic was if lawyers preferred open-plan spaces to private offices. The intention was to make office spaces more sustainable, encourage democratic use of space, and reduce costs[2].
The legal sector has been the last to adopt open-plan spaces due to the need for confidentiality. The main complaint in such spaces was the lack of privacy and the unintended audience. However, the pandemic has shifted the routine work of lawyers and led to offices being empty for the lockdown period, which has caused the debate to change focus.
How does this affect the legal industry?
Law firms traditionally had private offices with an endless supply of secretaries since legal work was seen to be individualistic. The mentality of the design was to project a symbol of status and success.[3] Legal culture is changing rapidly. In the PWC Law Firm's Survey, 2019 - Time for Change highlighted that law firms need to innovate at an accelerated pace to keep up with the changing trends and ensure profitability.[4] Compared with private offices, open plan spaces use 40% less space per lawyer and cost 35% less.[5] Cost remains an issue for law firms facing mounting competition, and clients demanding high-quality legal work, law firms need to focus on cost-savings and efficiency.
Attorneys have become increasingly mobile, and virtual collaboration has dramatically increased in the past few years. The pandemic has caused a rise in mobile working in agile workplaces. Slater and Gordon's announcement that they would permanently close their workspaces closely resembles the trends in the tech industry started by Twitter.[6] As stated by David Whitmore, the firm's chief executive, staff shouldn't be tethered to their desks; instead, they must be most productive. They would instead lease small workspaces for client meetings while most employees would remotely work the rest of the time. Slater and Gordon call themselves a technology-driven business, and this move increases the staff's productivity and work-life balance.[7] Hence, the imitation of the tech industry can be noticed. However, one can't ignore the fact that Slater and Gordon have been incurring losses for the past few years. It had put its Manchester office on the market as part of downsizing plans, shut down the office in Leeds, and cut jobs for 25 fee earners in Birmingham even before the pandemic started.[8] Closing offices at such a time would be beneficial for the firm.
Looking at this move from a broader picture would help us understand the perceived trends regarding office spaces in the future. Like the tech industry, not all firms would like to continue the remote working trend.[9] However, law firms are now more likely to be more cost-effective to ward off the incoming recession. Remote working allows for employees to have their own private spaces and be collaborative at the same time. Unfortunately, this doesn't guarantee productivity. At LawMiracle, we believe that if firms would consider it as a third option in the office space debate, they need to pay their employees for office tools and equipment, stationary, furniture, and space. They need to carry out well-being initiatives further to ensure the sound mental health of their staff.[10]
Written by Srinidhi Dhulipala
Assessing Firms:
#SlaterandGordon #BakerMckenzie #Dentons #Cooley #Freshfields #BCLP
References:
[1] Meganne Tillay, 'Slater & Gordon to Close London Office, Staff to Work From Home Permanently', (Law.com , 27th May 2020)
[2] Judith Evans and Kate Beioley, 'Law firms open up to new trends with office moves' (The Financial Times, 27th December, 2019)
[3] Fried Frank ,‘Will the legal office adapt to new working realities?' (Gensler Research Institute, 2019)
[4] Annual Law Firm's Survey 2019, PWC,<https://www.pwc.co.uk/industries/business-services/law-firms/survey.html> Accessed June 1st 2020.
[5] Law in London: Special Report 2017, CBRE, <https://www.cbre.com/report-download?PUBID=75280962-f07c-4cd7-b635-5b6b7971603b> Accessed June 1st 2020
[6] Kari Paul, 'Twitter announces employees will be allowed to work from home 'forever", (The Guardian, 12th May 2020)
[7] Meganne Tillay, 'Slater & Gordon to Close London Office, Staff to Work From Home Permanently' (Law.com, 27th May 2020)
[8] John Hyde, 'Acas talks as S+G shuts Leeds office' (Law Gazette, 29th October 2019)
[9] Aaron Holmes, 'Facebook, Twitter, Google, and Microsoft will let employees work from home through 2020 or longer. Here's how tech companies are reconsidering remote work in the wake of COVID-19', (Business Insider, 27th May 2020)
[10] John Hyde, 'Slater and Gordon to close London office as remote working becomes norm' (Law Gazette, 27th May 2020)
Additional Reading:
Property Mayhem! Is the Commercial Real Estate Sector Hanging by a Thread?
The COVID-19 Technology Drill: Testing Technology in a Remote Workplace
Disclaimer: This article (and any information accessed through links in this article) is provided for information purposes only and does not constitute legal advice.