Lewis Silkin and Winmark study reveals the future of employment legal services

With gender pay reporting, flexible working and data protection top of mind for businesses, legal providers must harness “ambition and innovation” to succeed 

LONDON: Gender pay reporting, employee data protection and cyber security are among the top employment-related issues concerning UK businesses over the next five years, according to a new study from law firm Lewis Silkin and research partner Winmark.

The new report, entitled The Future of Employment Legal Services, also sheds light on the changing landscape for employment legal services (ELS) and its implications for clients and legal providers alike.

According to the research, senior HR and legal professionals report that the employment-related issues most likely to affect their organisations over the next five years are related to gender pay reporting (59%), flexible working (54%), workplace employee data protection (51%) and cyber security of employment systems (49%).

The findings come in the wake of not only new draft regulations on gender pay reporting and recent high-profile data breaches, but also continued transformation of the talent eco-system driven in particular by connectivity, millennials and new demands on the work/life balance.

Surprisingly, a number of issues which have recently been the subject of high-profile public and media debate appear to be somewhat less of a concern. For example, only a quarter of respondents anticipated issues related to family leave, with apprenticeships (23%) and the Living Wage (21%) also featuring less prominently.

A changing landscape for employment legal services

The research also pinpoints just how rapidly the market for employment legal services is changing amidst these challenges, with widespread implications for law firms and other advisers.

Only 32% of respondents expected to engage a full-service firm for all of their legal needs, including employment, while a majority thought it possible or likely that they would move to a contract/ temporary provider or specialist firm specifically for their employment law needs. 83% of respondents indicated that that a reduction in their in-house ELS budgets was unlikely, while more than half thought it possible or likely that an in-house ELS resource would be launched or increased.

When selecting an employment law provider, price (99%) and range of services (92%) unsurprisingly were the most important factors. However, while purchasing decisions are often cost-driven, the findings also underscore just how valuable clients find specialist employment advice. In general, buyers still want employment specialists to handle key matters, with only 4% of respondents saying that they use non-law firm consultancies to handle ‘routine’ work.

James Davies, divisional managing partner and joint head of employment at Lewis Silkin, commented:

“The world of work is changing rapidly. Factors ranging from cost-cutting and technological integration to the rise of agile workspaces are fundamentally changing how people work, and how employers cater to employee needs. The challenges faced in this climate are many and varied, and this report demonstrates that employment law is at the top of the agenda for businesses who are looking to ensure frameworks are in place to maximise the productivity, effectiveness and security of their most valuable of assets.

In addition, the report highlights that there are both significant challenges and real opportunities for employment legal service providers. Changing business needs, employee requirements and an evolving regulatory framework are all contributing to a dynamic landscape which will require an innovative and agile approach from the legal sector. Providers who are able to offer tiered and flexible solutions, tailored to fit client needs and which utilise new technologies, will be well placed to service the employment market. This requires ambition and innovation, but is an opportunity for differentiation and growth that should be embraced.”

Oyindamola Asekun Abinusawa, research manager at Winmark, added:

“Many businesses are facing economic pressures and, with employees being a significant and valued investment, cost and excellence are the critical factors behind businesses’ ELS buying strategies. Respondents to this report have demonstrated that their legal providers should not only deeply understand their business needs, but also build relationships that are characterised by reliability and responsiveness – and which are value for money.”

The research was undertaken by Winmark, in partnership with Lewis Silkin, between February and April 2016. It involved a survey and in-depth interviews completed by more than 70 respondents, all of whom were senior practitioners from respective HR and legal sectors, including in-house and external solicitors who have responsibility and/or influence in purchasing employment legal services and are well places to comment on the future of the sector.

For further information please contact:

Ilka Clune, Lewis Silkin

Tel: 020 7074 8226
Email: ilka.clune@lewissilkin.com

Scott Addison, Matthew Clark, Tal Donahue, Infinite Spada

Tel: 020 7269 1430
Email: scottaddison@spada.co.uk