The legal department of the future begins today

Introduction

In-house teams throughout Europe and around the world have returned to the office, some full-time and many ­others on a hybrid or fully remote basis. There’s a great deal to discuss about what this means for the majority of employees who want to continue working from home and employers who want people in offices, often pointing to the need for face-to-face collaboration. We’ve heard terms like “the Great Resignation” and “quiet quitting”, and have seen increased use of tools that allow us to communicate and collaborate not only from our homes, but from anywhere around the globe. There’s also a renewed focus on priorities and values, which makes sense following such a turbulent period.

As knowledge workers, in-house lawyers can work from anywhere (unless we need to be in a courtroom, and even then, allowances can be made), but the need to collaborate is great, especially among in-house teams whose work ­extends across business units. What is the happy medium? How do we advise our organizations on the future of ­in-house teams and the way we work, while also remaining compliant with legal requirements and the implications associated with having employees working from ­locations anywhere in the world?

Designing better in-house work places: What to consider

There is much to consider as we look at the impact of these issues on employee retention and changing work priorities. While there are challenges, the events of the past few years have created an opportunity to design better ­in-house workplace environments (both in the physical and non-physical sense) that are more aligned with the preferences of modern corporate counsel.

The 2022 Future Ready Lawyer report by Wolters Kluwer found that 69% of corporate lawyers expect to work ­remotely full- or part-time going forward. However, ­according to the 2023 ACC Law Department Compensation ­Survey, 58% of respondents currently work on a hybrid basis, a 5% reduction since 2022. Now, 16% report wor­king full-time in the office, compared to only 11% in 2022. It remains to be seen if this change is a sign of a larger shift to come.

Further, in response to changing priorities, the Wolters Kluwer report found that 86% of legal departments have experienced a “very” or “somewhat significant” impact from the Great Resignation, with 70% of in-house lawyers surveyed indicating they’re likely to leave in the coming year. Of ACC’s compensation survey respondents, 33% ­reported that they have changed jobs in the last two years, with 18% noting that they are “likely” or “very likely” to change jobs in the next year.

This data suggests that greater flexibility for the in-house legal department and overall work environment is not a luxury but a necessity. Retaining our teams is critical, as is recruiting new team members. ACC’s 2022 Trends in Legal Transformation and Technology Report found that 76% of ­departments surveyed consider that getting the right mix of talent is the area that they must get right to serve the growing demands of the business.

How to remain attractive as an organization

The information provided above also indicates that more companies are offering flexible work environments and schedules to remain attractive in a highly competitive market (no matter the industry). As leaders, we need to not only advise on the many legal issues that can arise from remote work and align policy with expectations, but also on how this “new” way of working can benefit the organization as a whole.

In response to the trend toward hybrid arrangements, the physical workplace is also changing. We know, ­anecdotally, that flexible in-office attendance is leading to more flexible work environments, including more open plan arrangements, “hot-desking” and a greater focus on collaborative spaces. These findings make sense as it is hard to justify a traditional office for someone who is only using it two or three days a week. However, there are real questions about whether less traditional workspaces serve the needs of the in-house teams.

Some leaders are expressing strong views regarding the importance of a physical office, with confidentiality and the need to do focused work being noted as justifications for a greater return to the office. A truly capable in-house team can make any office arrangements work effectively, but there are certainly pros and cons to every option. Anec­dotally, many in-house lawyers report that they are better able to do focused work away from the office than in it.

Technology is a priority

Of course, for teams to stay actively connected and ­engaged, technology must be a priority. ACC’s 2022 Trends in Legal Transformation and Technology Report found that having integrated technology and solution providers is the most important next-generation investment for the legal ­department. Again, the Wolters Kluwer report echoes this, with 87% of in-house lawyers noting that it’s “extremely” or “very important” to “work for a legal department that fully leverages technology”.

Whether you work in the legal department or not, we all expect the technology we use to work, and we want to work for companies that invest in it. These reports make it evident that in-house legal departments are best advised to not only invest in new technology, but to find innovative ways to use it. This technology includes process automation and artificial intelligence solutions, which can ­“decrease the impact of increased demand on the well-­being of in-house counsel”. A good example of this is how an increased reliance on video conferencing has enabled much better collaboration among geographically dispersed teams and partly addresses proximity bias issues.

Take aways

The legal department of the future, and the practice of ­in-house law, will only continue to grow and evolve, and it is important for organizations to meaningfully engage with this evolution. To continue to grow and thrive, legal department leaders should keep an open mind when it comes to changes within company cultures. It is imperative that these decision-makers continue to keep up with worker desires and trends when it comes to remote work policies, and recruiting and retention practices. Those that do not, will quickly find themselves at a significant ­competitive disadvantage.