A recent survey aimed at understanding the professional relationship between in-house legal counsel and law firms has yielded several key insights. The survey explores the demographics, preferences, and working habits of GCs, as well as how they select and work with law firms, both domestic and international.
Demographics and Experience
The survey was answered by over 100 respondents, with a nearly balanced gender distribution, favoring women GCs (58% female). Age groups of 30-40 and 40-50 were equally represented (44% each). In terms of experience, 40% have over 12 years of experience as legal counsel, making them the largest group.
Professional Social Media Presence
A significant majority of legal advisors are personally active on LinkedIn, indicating the importance of professional networking through social media.
Legal Department Size and Law Firm Collaboration
Most respondents work in small legal departments, with 63% indicating their department consists of 1-3 lawyers. Collaboration with law firms is primarily with large firms (top 20), as noted by 50% of the respondents, while others work with boutique firms or firms of varying sizes depending on the case at hand.
Selection of Law Firms – its all personal
When selecting a domestic law firm, the top factors include prior professional relationships (29%), recommendations (23% respondents), and personal connections (18% respondents). For international law firms, the choices are guided by recommendations (24% respondents), referrals from Israeli law firms (18%), and previous professional relationships (20% respondents).
Volume of Work with Law Firms – GCs referring directly
Most companies work with 3-5 domestic law firms, while the number of international law firms varies.
For legal work sent outside Israel 52% of GCs send work directly to international law firms, they have a relationship with. This is a growing trend we are seeing in recent years, based on our previous surveys.
Impact of Inflation on Work Volume
Inflation has not significantly affected the volume of work in legal departments for most respondents (74%), nor the work transferred to law firms (74%).
Preferred Areas for Outsourcing and Internal Handling
Litigation is the most commonly outsourced work (23%), followed by labor law (14%), tax (12%), and intellectual property (10%). Conversely, commercial work is primarily handled internally by 30% of the respondents, and regulatory matters also see significant in-house management (16%).
This leads to a conclusion that law firms with auxiliary departments can attract work, by getting their foot in the door with niche and professional practices and gain more substantial work following that.
Staying Updated on Legal Developments
Legal advisors stay informed through a variety of channels, with the most popular being newsletters from law firms (20%), legal communities (20%), and relevant websites (14%). Conferences and events also play an essential role (16%). As for professional development, GCs would like to see more professional webinars, client updates and soft skills related activities.
Role of Social Media and Client Satisfaction
While a significant majority of legal advisors are personally active on LinkedIn, indicating the importance of professional networking through social media, social media has a limited impact on the selection of law firms, with 55% of the respondents saying it plays no role at all.
Importance of Technology and Service Improvements
Technology adoption within law firms is valued, with respondents asked to rate its importance, but is not seen as an important factor when choosing a law firm.
Client satisfaction with their primary Israeli law firm is at an all time high, with 82% satisfaction rate and 83% content with the service they are receiving. GCs also evaluated that 80% of the law firms they work with understand their sector and company. Suggestions for service improvement included quicker response times, greater availability, and tailored professional support.
Client Feedback and Key Attributes for Law Firms
The importance of client feedback varies, with 60% of respondents deeming it important.
When choosing a law firm, the most valued attributes are professionalism (35%), service level (30%), and fee structure (20%).
Diversity and Legal Directories
Although personally important (66%), gender diversity and equality are only somewhat influential in the selection of law firms, with 50% of the respondents indicating no impact.
The role of legal directories varies, with 60% respondents seeing value as a comparison tool (21%) validation tool (15%) and helping in the process of choosing a law firm (16%). The international rankings guides receive a slightly higher score (48%) to the Israeli guides (46%).
In conclusion, this survey offers a comprehensive overview of how legal advisors in Israel operate, select law firms, and manage their work both domestically and internationally. The findings highlight the critical aspects of professionalism, service, and existing relationships in maintaining effective collaborations between legal departments and law firms.
