Irish publication Business World reports this quite amazing figure especially as more and more UK city firms are desperately searching out mergers or beginning the xmas layoff season early
Will international firms start to HQ in Dublin for the European market now Brexit is becoming a reality?
Here’s the story
REVENUES ARE UP FOR 70% OF IRISH LAW FIRMS
Ireland’s legal sector is experiencing higher revenues and improved profitability on the back of better economic conditions according to the latest Smith & Williamson Fifth Annual Legal Survey.
According to the research, competitive pressures are driving investment in efficiency, IT, business development and marketing. Attracting and retaining talent is particularly acute in the Dublin region with significant numbers of vacancies reported, wage pressures and salary increases of over 5%.
The improving economic conditions and increasing confidence in the economy are reflected strongly in this year’s survey. The general economic positivity in Ireland is mirrored by over 74% of law firms (100% of the top 20 firms), who believe the business outlook for the legal sector in Ireland improved in the last 12 months and expect the outlook for the legal sector to further improve in 2016.
The legal sector continues to create additional jobs and all of the top 20 respondent firms have seen an increase in their staff numbers this year as did almost half of all firms surveyed (49%). Most of the top 20 firms’ surveyed (93%) and 57% of all firms surveyed expect their staff numbers to increase in 2016.
More trainee solicitors have been taken on in the last twelve months by most of the top 20 firms (80%) and this is expected to continue in 2016. In 2014 there were 9,224 (2013: 8,895) practising solicitors – an increase of 329 (4%).
The increase in staffing levels means competition for talent is becoming more of a challenge. Hence, the recruitment and retention of staff is presenting increasing difficulties for firms and remains a key issue for the sector in particular for the larger firms as 67% of top 20 firms reported pay increases of 5%+ in 2015. It is important to note that many smaller firms still recovering from the recession made no pay increases in the last 12 months (36% of firms and outside Dublin two in three firms surveyed (66%)).
Maintaining profitability and pressure on fees remain the key issues for law firms over the next twelve months. Managing cash flows is expected to continue to present issues for almost half of all respondents (53%), mainly mid-tier and smaller firms in the next twelve months but it also was stated to be a key issue for 33% of the top 20 firms surveyed. As turnover increases and working capital funding is required we expect these pressures will increase.
A total of 28% of respondents highlighted the rise of operating costs as an issue over the last 12 months. It is interesting to note that one in ten firms (20% of the top 20 firms) has mentioned office space as a key issue facing their firm over the next twelve months. This relates to rents increasing in the marketplace and space requirements.
The survey also shows that most firms, 76% (93% of top 20 firms) have made changes to their business processes to improve their efficiency. Fixed fees for assignments are now the norm and 64% of firms (73% of the top 20) are reporting an increase in fixed fees for assignments.
Furthermore, firms continue to increase sales and marketing efforts. Almost two-thirds of firms surveyed (87% of the top 20 firms) have increased their marketing and sales efforts in the last 12 months. More than half of firms have targeted new markets (80% of the top 20 firms) and nearly four in 10 introducing new services (73% of the top 20 firms).
In 2015, 68% of firms increased their investment in IT in order to achieve greater efficiencies.
https://www.businessworld.ie/news/Revenues-are-up-for-70-of-Irish-law-firms-566628.html
