Smaller firms research points to bright future amidst challenges

A survey of smaller Scottish law firms has found many are upbeat about the future of such legal businesses, despite challenges around areas such as staffing, technology and work-related stress.

The Law Society of Scotland commissioned independent research company Taylor McKenzie Research to examine the key issues for firms employing up to 39 solicitors.

More than 400 partners, business owners and senior solicitors completed an online survey over four weeks earlier this year, with responses then examined further via a small number of in-depth interviews.

Optimism was substantially higher among firms that do not offer legal aid services than those that do. Among non-legal aid firms, 48% of respondents were very or somewhat optimistic and a further 24% were neither optimistic nor pessimistic.

Other survey findings include:

• 34% of respondents reported a negative impact from staff turnover
• 29% of non-partner respondents have aspirations to become a partner while 44% do not want to become a partner
• 46% of non-partner respondents said that lack of training/knowledge of new technology was among the biggest technological challenges they face
• Nearly one in five respondents reported having consistent levels of unhealthy/unsustainable stress

Law Society of Scotland President Patricia Thom, a former smaller firm owner herself, said: “Smaller firms play a vital role in Scotland’s legal landscape and this research shows there’s a bright future ahead, albeit with some challenges.

“The thoughtful responses we’ve received have given us a better understanding of the opportunities and challenges for smaller firms, and we’ll now be reviewing the advice and support we offer to members in light of this information.

“We believe that technology is at least part of the solution for a number of the challenges facing smaller firms. This research indicates that there are barriers around training and knowledge that need to be removed to unlock that potential.

“It is concerning to hear that stress remains such an issue for many smaller firm solicitors. Mental health and wellbeing is a core focus of the Law Society, providing tools to navigate stress and guidance on reducing or removing its causes altogether where possible."

Read the research report here, or at the link below.