Historically

Going to the office to work was a given for white collar workers for decades, until COVID-19 hit, which served as the impetus for the widespread adoption of hybrid working among many white-collar or ‘knowledge workers’. However, the concept of ‘telecommuting’ dates back to 1972, a term initially coined by Jack Nilles, a literal rocket scientist and then researcher at USC In 1979, IBM took pioneering steps toward hybrid working with a team of 5 employees embarking on a remote working trial; by 1983, over 2000 IBM employees were engaging in remote work. Fast forward to 2009, and IBM announced that 40% of their staff had “no office at all”, leading to substantial savings of nearly $2 billion in office space costs.

This anecdote of IBM’s trial highlights the broader gradual rise of remote working from the 1970s to 2010, owing to the advancements in personal computers and the proliferation of Wi-Fi. It was anticipated that the number of employees working from home would steadily increase with time, however, the COVID-19 pandemic accelerated this trend to an unprecedented scale, necessitating swift adaption from both employees and businesses to this new work paradigm.

The benefits

Today, lawyers around the world engaging in hybrid working benefit from a more flexible work-life balance. We have spoken with Partners and Associates who are experiencing a novel sense of consistency as they now find themselves regularly sharing dinner with their families – a precious first in their professional careers. Associates from the Big 4 Japanese law firms have expressed their gratitude for their firms’ new-found appreciation for work-life-balance. Similarly, in-house lawyers have expressed the introduction of working from home to be a ‘silver-lining of the COVID-19 pandemic’.

The employee is not the sole beneficiary to this shift, employers too have reaped some rewards. Studies following the pandemic revealed compelling findings: remote workers who spent 60-80% of their time working from home, were far more engaged and productive, than those working in the office full-time. Not to mention the cost savings of a reduction of office space. It is clear that there are positives on both sides.

But it’s not all good news…

However, it’s worth noting that some sources indicate that the initial surge in productivity seen during and immediately after the pandemic has waned. In response to this data, leaders of major Japanese corporations are expressing a desire to bring their teams back to the office, citing the need to ‘boost collaboration and avoid a productivity slump’. Japanese corporations are concerned that without the relationships formed between co-workers in the office, employees are likely to ‘turn to the highest bidder’. Although it’s fair to say that the legal market is far more complex than this.

Law firms around the world are also encouraging lawyers to get back into the office. Fried Frank Harris Shriver & Jacobson, for example, has introduced a flexible summer work-from-home scheme, limited to the month of August, while simultaneously reducing the overall annual allowance for remote work. With Shearman and Sterling adopting a similar strategy, and Skadden Arps simply asking lawyers to return to the office four days a week. Incentive based initiatives are also emerging, as seen at Osborne Clarke, where in order to qualify for an additional bonus, lawyers must be in the office at least three days a week.

This shift back towards more days in the office, could be beneficial to the lawyer as remote work does have some drawbacks on the well-being of individuals. The so-called ‘epidemic of loneliness’ becomes more pronounced when employees spend their entire workday isolated. Recent studies have revealed the negative side effects of social isolation can be as detrimental as smoking 15 cigarettes a day (PLOS Medicine)!

Moreover, it’s crucial to recognize that a poorly managed hybrid work arrangement can also lead to severe loneliness or dissatisfaction. In situations where there is a lack of clear guidance, employees may find themselves spending their days in the office engaged in a seemingly endless stream of video calls, with limited face-to-face engagement with colleagues. Thus rendering their commute into the office somewhat redundant. In cases where organizational structure is lacking, the expected benefits of in-office work, such as promoting work culture, encouraging collaboration and enhancing productivity, may not come to fruition. For the hybrid model to be effective and conducive to mental well-being of employees, it’s essential for firms to make necessary adjustments to their HR processes.

What is the best approach?

Obviously full-time remote work, as experienced during the pandemic, may not be the ideal working environment for both law firms and lawyers. However, it’s important that firms refrain from revoking the option of remote work for their employees. In the finance sector, for instance, a study discovered that half of the respondents would rather leave their jobs than increase their time spent in the office (as per Bloomberg’s latest Market Live Pulse survey). Globally, only 20% of Bloomberg’s survey participants expressed a preference for working solely from the office.

While this survey comes from the finance sector, it’s plausible to assume that lawyers may share a similar sentiment regarding remote work. Eliminating the option of hybrid working entirely would prompt lawyers to seek opportunities at firms that offer a more flexible approach to remote work. Recent conversations with lawyers in the Japanese market identify that individuals still prefer at least having an option to work from home as needed.

When it comes to firms hiring and lawyers choosing a new workplace, it’s crucial to establish well-defined expectations for flexible working arrangements, that both the employer and employee should agree on. Without a degree of structure and clarity, the advantages of remote work are diminished for both parties. However, based on conversations with lawyers in the industry, it appears that some form of hybrid working is likely to remain a key feature of the legal market in the years to come.