High demand, low supply drive Michigan's hot legal hiring market

By Kelly Caplan
BridgeTower Media Newswires

DETROIT-Robert Half Legal released its annual "State of Legal Hiring" research, and it's clear that what law firms and corporate legal departments saw at the tail end of 2019 shows no signs of slowing down: Hiring is hot.

Of the more than 350 attorneys who responded to the national survey, more than half reported they plan to add to their legal teams.

Jonathan Chudler, recruiting manager and legal workplace expert from Robert Half Legal in Southfield, said there seems to be an uptick in legal hiring overall.

"This time last year, only 47% of U.S.-based lawyers said their law firm or company had planned to expand their legal teams in the first half of 2019," he said. "Compare that to this year, where 54% of lawyers said their company or firm will expand legal teams during the first half of 2020."

While the Robert Half survey gathered responses from attorneys nationwide, Michigan firms appear to mirror the findings.

Michael McGee, CEO of Miller Canfield, said the Michigan-based firm added to its attorney roster in late 2019 and early 2020, expanding its global reach.

"We made a number of strategic hires, including an attorney to support our international trade practice, and three in international transactions and defense and aerospace, two of whom opened the firm's new offices in Washington, D.C., and Doha, Qatar," McGee said.

Angela Wieber, attorney recruitment and retention specialist for Foster, Swift, Collins, & Smith PC, said her firm will be adding headcount as well.

"Although Foster Swift is still in the process of confirming its complete 2020 plan, the firm will be adding attorneys, likely permanent positions, in the first half of the year," she said. "[We're] always looking for top talent. Our current 2020 hiring plans are based on getting more coverage for current and anticipated work."

Meanwhile, Mark Wisniewski, chairman and CEO of Kitch, Drutchas, Wagner, Valitutti, & Sherbrook, said his firm will expand by hiring new and lateral attorneys, as well as legal assistants in 2020.

"We have increased our lateral hires, but continue to recruit the lawyer who just passed the bar in November 2019 or is scheduled to take the bar in February 2020," he said. "Our main goal is to always have the right person, either legal assistant or attorney, working on specific tasks."

Jason Ball, a managing director with Kinney Recruiting LLC, said the uptick in hiring in Michigan makes sense.

"A strong economy creates a demand for legal services, which creates a demand for associates and partners to carry out the work," he said. "As long as the economy remains strong, there will be more permanent attorney hiring in Michigan."

Hurdles to hiring

While the hiring boom is great news for legal talent, it presents unique challenges to hiring managers: almost 90 percent of respondents said they faced challenges finding skilled legal talent to fill open positions.

Hiring managers reported the major hurdles to hiring include a shortage of qualified talent, the speed of the hiring process, and what firms can offer in terms of salary and benefits.

"Skilled legal professionals are in extremely high demand," Chudler said. "With increased competition for top talent, hiring managers must act quickly with strong candidates or risk losing them to other offers."

Heather Sexton, senior staffing consultant with Beacon Hill, said this tightening of the labor market has led to a higher demand for her services.

"Attorneys working with a recruiter that specializes in legal placements offers access to a broad spectrum of opportunities," she explained. "It also offers the ability to pursue these positions with a level of confidentiality that is not possible when inquiring on one's own behalf about potential openings."

Ball agreed, saying he sees an increase in demand for legal recruiters.

"An almost full-employment economy brings a war for talent in the marketplace," he said. "Good recruiters bring candidates to clients who would not have had them but for the recruiter's efforts."

Retention

The report showed that more than three-quarters of law firm and corporate legal department respondents said they were concerned about losing top legal talent to other opportunities.

How can firms and legal departments prevent their A-list attorneys from seeking greener pastures?

"Employee retention comes down to more than salary," Chudler said. "There's been a significant shift in legal culture where work-life balance is becoming increasingly important."

While salary is the major driver, quality of life ranks highly when it comes to retaining talent. Respondents reported they were offering flexible schedules, professional development for growth, and providing a variety of challenging assignments to keep attorneys engaged and incentivized.

Wieber said the welcoming culture at Foster Swift plays a large role in the firm's ability to attract and retain talent.

"The firm takes an individualized approach to its people and practices to ensure client needs are met while maintaining a positive work atmosphere," she said. "While attorneys are expected to work hard, the firm understands the daily challenges of managing life at home and life at the office."

Wisniewski said Kitch recognizes and compensates attorneys who show quality work, adding that the firm doesn't believe in a "one-size-fits-all" compensation package.

"We are constantly in contact with practice group leaders and clients, and encourage them to communicate when an attorney does a great job on a case or a project," he said.

McGee said Miller Canfield's retention plan includes initiatives to attract, support and retain women attorneys, as well as racially diverse and LGBTQ attorneys.

"These initiatives have been good for all of our attorneys at every level," he said. "As attorneys build on their successes, we see an increase in satisfaction and better retention."

Contingent and consulting

The driving force behind legal hiring decisions comes down to business growth and development, Chudler noted, and firms and corporate legal departments are looking beyond just permanent hires.

More than 90 percent of those planning to add headcount are expecting to use temporary, project or consulting options through the end of Q2 2020, which is an astonishing 68-point jump from last year.

"A flexible staffing approach that includes hiring legal professionals on a contract or project basis allows organizations to meet fluctuating caseloads and have more immediate access to workers with specialized skills," he explained.

Sexton said using a legal staffing agency is a fast and efficient solution for firms and in-house legal departments in need of litigation or e-discovery support.

"Project staffing is cyclical in nature, and demand for attorneys can turn on a dime," she said. "We have cultivated a community of experienced e-discovery attorneys in the Detroit area that makes it one of the most sought-after markets for firms seeking a cost-effective solution for their projects, without compromising quality of their finished product."

More than just attorney roles

The report found that attorneys in highest demand were midlevel associates and corporate counsel with less than 10 years of experience.

Ball agreed.

"If an associate has at least two years' experience in M&A/private equity, then that attorney could lateral to a firm of choice," he said. "Additionally, a partner in this practice area with a self-sustaining business, or even just some business, could lateral to a number of firms in the area who are seeking to bolster their corporate ranks."

But it's not just traditional attorneys who are in demand. According to the report, other top positions include compliance specialists and data privacy specialists.

Chudler said data privacy is trending higher as a business priority for firms and companies nationwide as consumer privacy concerns grow.

"I was surprised to see data privacy specialists ranked among the top three most in demand legal positions for this year, as we're just starting to see this becoming a priority in Detroit," he added.

Firms are adding support staff, too, and are coming up with creative ways to help current employees grow into a new skill set.

Wisniewski said Kitch continues to see a need for legal assistants, and the firm is exploring ways to leverage technology to help clients and firm employees.

"We are seeing secretaries taking legal courses to become trained as legal assistants as the traditional role of the secretary changes," he explained. "We have been looking at programs that will allow our secretaries, with help from the firm, to become trained as legal assistants."

Practice areas

The report also highlighted which practice areas are expected to be in demand in Q1 and Q2. Respondents said litigation - particularly commercial litigation, insurance defense and securities and corporate governance - is expected to offer the greatest number of job opportunities.

Wisniewski said his firm continues to see growth in PIP and health care in Michigan and beyond.

"With the merger and acquisition of hospital and health care systems throughout the country, Kitch will be expanding in other markets," he said. "We just opened an office in Hawaii and are looking to expand into California, Indiana and Wisconsin."

While intellectual property may be slowing as a hot practice area throughout the U.S., McGee said that doesn't hold true for his firm.

"We're headquartered in a city that has always had a high demand for IP legal services because of the automotive industry," he said. "We have a powerhouse IP practice, and are continuing to see opportunities there."

Ball noted that, in his experience, corporate attorneys with M&A experience are in high demand with both in-house legal departments and law firms.

Published: Mon, Mar 16, 2020