Many law firms are static in size. From year to year, there are the same number of employees. There are the same number of offices. The number of clients is relatively the same. This means that the revenue of the law firm, and law firm salaries, are relatively the same.
All things being considered, having a law firm that is static is much better than a law firm that is shrinking. If the number of employees is shrinking, that is a not a good sign. By the same token, if the client list and revenue of the law firm is shrinking, this is problematic. In these cases, the law firm is eventually cutting staff, cutting salaries and, ultimately, the viability of the law firm may be in peril.
The reality is that for most law firms and businesses is that if they are not growing, eventually, they will begin to become one of those law firms that shrink. It’s hard to simply keep things level for the short-term and long-term because most folks want their life to get better over time.
On the other hand of the spectrum are the law firms that are growing. For law firms that are growing, the client list is growing from year to year. In law firms that are growing, the revenue is going up from year to year. And the number of employees and offices keeps multiplying upwards.
Sure, in growing law firms, there can be growing pains. In growing law firms, things do not stay static. Things might always be changing — and changing quickly. From time to time, in law firms that are growing, there can be turnover as the law firm continues to evolve, continues to grow and continues to become something bigger and better.
But, ultimately, with law firms that are growing, there are more opportunities. Employees can grow into newer and better roles over time. The law firm can continue to enhance salaries and benefits over time. Ultimately, growing law firms are where most employees want to be.
And even if some employees don’t want to be in a growing environment because it takes them out of their comfort zone, for those employees and owners who stay, there is an excitement to growth. There is an excitement and adrenaline rush to change that makes it worth getting out of bed to see. Who wants things to simply remain the same? Isn’t progress what you want?
If you are running a law firm, are you remaining static, shrinking or growing? What’s your plan?
If you have any thoughts, feel free to share them below.