Staffing, technology and stress holding back Scotland's small firms despite optimism

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

More than 400 partners, business owners and senior solicitors shared their experiences of life in the country’s smaller practices.

The research, conducted by independent company Taylor McKenzie Research on behalf of the Law Society of Scotland, focused on firms employing fewer than 40 solicitors.

Findings revealed a marked difference in outlook between firms which did and did not offer legal aid services.

Among non-legal aid firms, 48 per cent of respondents were very or somewhat optimistic and a further 24 per cent were neither optimistic nor pessimistic.

But by contrast, practices offering legal aid were significantly more likely to be very pessimistic about the future of smaller practices (19 per cent) than those which were not currently offering legal aid (five per cent).

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.”

Key findings

• 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

The full research report can be read here.