What You Should Know About Legal and Professional Services
In its most basic sense, legal and professional services are those that help businesses and professionals comply with the law. These services are relatively self-contained, and don’t always rely on the delivery of other services. Common legal service providers include attorneys and consultants, government officials, and others who have a vested interest in promoting the rule of law in their communities. Professions that offer legal services are often regulated by their respective state or local bar association, which ensures that their actions remain within accepted standards.
Legal and professional services are generally responsible for negotiating contracts, settling disputes, maintaining regulatory compliance, levying fines where necessary, and enforcing the laws to protect citizens from harm. Though primarily concerned with conflict resolution, legal and professional services also play a key role in business planning, tax filing, real estate, and even estate planning.
When forming a business or maintaining a nonprofit organization, you may be legally obliged to hire a lawyer. You may also be forced to work with them during teacher disciplinary hearings, child custody battles, discrimination lawsuits, patent troll disputes, class action lawsuits, or federal or state securities violation cases.
Notable fields/subfields include:
Financial Services:
Hospitality Services:
Legal Services:
Professional Services:
Semi-professional Services:
Public Sector Services:
Many fields require a degree, license, specialized training, or certification in order to work. For example, lawyers are regulated by State Bar Associations and must pass the State Bar exam to work as an attorney, and accountants are licensed by the American Institute of Certified Public Accountants.
Legal and professional services are also generally governed by a set of ethical practices , and some professions even have a website to look up an ethicist in your area. For example, the American Medical Association publishes a code of ethics, as does the American Psychological Association, and both groups have an accessible online directory.
Likewise, legal services maintain a code of ethics, and the American Bar Association has a complaint system to handle all legal code violations. Also, the Center for Professional Responsibility in Mediation and Arbitration publishes a complaint system to field ethical and conduct issues between mediation and arbitration professionals.
The job outlook for many legal and professional services is favorable, and many consider them to be a ‘recession-proof’ career choice.
The Bureau of Labor Statistics anticipates an 11% increase in employment for lawyers through 2024—higher than the average for all occupations. With wage rates anticipated to top $130,000 per year for lawyers in D.C., one in four employed lawyers make over $150,000 per year.
Similarly, the BLS predicts that employment opportunities for paralegals and legal assistants will grow 17% and wage rates for these positions will increase significantly. Median annual earnings for full-time paralegals and legal assistants during 2015 was $49,500.
Management, scientific, and technical consultant jobs are also expected to rise by 14% through 2024, an increase in higher than average for other occupations. Median salaries for management consultants in 2015 was $100,000/year, with a generally optimistic job outlook.
There are thousands of other legal and professional services that exist, from doctors and dentists to civil engineers and financial planners. These fields all share the same goal: ethical, impartial support for those in need of educated guidance.
Which Legal Service is Right for You?
When trying to determine the most appropriate legal service for your needs, consider a few factors. First and foremost, assess whether a standard law firm model is the best solution to your problem by evaluating the complexity of the legal issues involved, your personal/legal preferences, and what the future may hold for the relationship. An alternative system of "legal services" could be in your best interest.
Next, begin by identifying the purpose of the representation and determining whether the type of work you need performed aligns with the specialties offered by a particular attorney or law firm. It is helpful to consider what price (in difficult to quantify terms) you are willing to pay for the service.
If cost is an important factor, consider the following: There are other important factors to consider besides the fee system. For example, assess the experience level of the potential attorney or firm. The manager of the practice unit of a big firm with 20 years of experience is not necessarily a better choice for your matter than an attorney with 10 years of experience who is learning the ropes at a small firm. Consider insuring that the person who performs most of the work will be someone with decent competence, take a measure of how much oversight there will be so that you can insure that you will get the level of competence you are paying for in exchange for the fee you are paying.
In addition, determine whether the individual attorney or law firm is qualified under law and ethics rules to perform the service. Look for red flags in the operation of the law firm. Does it have a large number of employees relative to the amount of revenue received? Are the billing rates of personnel incrementally lower or higher depending on various factors that do not make substantive sense?
One key to spotting trouble is through careful reading of the firm’s website and other materials. If the website focuses on what will be done for you, but not the ethical obligations that will be observed, beware, there may be at least some ethics issues to be considered; you will be paying your attorney not only to serve you, but also to follow ethics rules and observe the many substantive laws with which the lawyer must comply. If you suspect that the firm does not care about ethics, that it just cares about getting paid a large fee regardless of whether ethical obligations are being observed, beware.
Why It Makes Sense to Consider Professional Services for Your Business
Business growth and economic expansion are rarely the results of good luck. Instead, they are the natural outcomes of strategic planning, sound execution, and risk management. As businesses expand into new markets, hire new employees, and launch new products, they often turn to legal and other professional services as critical components of their growth strategies.
The International Franchise Association estimates that the franchise sector is projected to grow to $451 billion in 2018 and is expected to grow by 3.7%, accounting for 3.3 percent of the national gross domestic product (GDP), and roughly 8.1 million jobs. The restaurant industry, which consists of many different types of franchises, is projected to reach $899 billion in 2018, up nearly 5% from 2017. This tremendous growth in the franchise and restaurant sectors is a boon for legal and other professional service providers, such as accountants, as franchise owners and operators across the country seek guidance at every stage of their business growth.
Franchising presents many unique legal challenges, including compliance with both federal and state laws, and owners often lean heavily on legal counsel during the early stages of their business. From complying with franchising regulations, structuring financing, and developing an employee handbook, franchise owners and operators generally have a great deal of interaction with professionals until they become established, opening more branches and hiring more employees. Once a franchise has established itself as a leader in its market(s), it may partner with legal and other professionals on an as-needed basis to help with ongoing matters.
How to Budget for Legal and Professional Services
When it comes to engaging legal and professional services, maintaining your budget while still achieving the best results can be a challenge. However, there are several strategies that businesses can consider to help them get the best value for their money while also operating within budgetary constraints. One of the most effective ways to keep costs in check is to establish a well-defined budget for outside services at the outset of the engagement. This provides clarity for the vendor while ensuring that you have a firm handle on how much you are spending and how it will be allocated. Comprehensive budgets can help to minimize confusion and overspending down the road. Discounts can also help your business save money. Many law and professional services firms offer a variety of discounts, from early payment discounts to volume discounts. You may be able to save money over the long term by taking advantage of these opportunities rather than paying a premium for a particular service . While it may seem counterintuitive, hiring a less experienced attorney or other professional service provider can help you save money and still achieve the results your business needs. These less experienced individuals often command a lower hourly rate, making them a more budget-friendly option. Additionally, they may be more determined to prove their worth to a new client to gain valuable experience you and trusted advice down the road. Some vendors may offer a reduced fee schedule or sliding scale according to their clients’ unique circumstances. While not all vendors are able to make this investment, consider asking your attorney or CPA whether a reduced fee schedule can help your business save money during your initial consultation. They key to hiring legal and professional services is to determine the right balance between cost and quality. By various strategies, you can find ways to maintain your budget while still receiving the high-quality services that your business needs to thrive.
The Future of Legal and Professional Services
The impact of technology on the delivery of legal services is well advanced. For example, Gen Z and Gen Alpha will expect immediate online access to their legal advisors and matters, and high-quality, 24-hour service. While their reaction to having human advisers will be interesting, they will likely be disappointed if they cannot find their advisers online.
Meanwhile, the millennial legal generation crave work-life balance and the flexibility to work remotely. Remote technology makes this a reality for many.
The invisible distribution of various legal tech applications, from e-discovery to KYC reviews, also drives small and boutique firms into the 21st century. In this context, smaller law firms have a greater opportunity to attract legal services clients seeking efficient, cost-effective and contemporary solutions delivered by sophisticated case management systems and knowledgeable lawyers.
Bots are already transforming the way clients interact with law firms and the services they receive. Bots will continue to perform administrative tasks and provide basic legal services for small-value and standard services at a fraction of the price of humans. Some firms advertise that their average self-serve services are $50 to $85 per transaction.
Given the burgeoning capabilities of AI and machine learning, it will likely not be long before AI-based legal research, contract drafting, due diligence and integration with online dispute resolution software will mean more affordable, accessible and speedy services to the consumer.
Legal and Professional Services Questions & Answers
Legal Services FAQ
Q: How much do your services cost?
A: Our fees are as varied as the services we provide. We work either at our hourly rates, have ‘fixed’ pricing for specific projects or charge a percentage based on the value of the transaction.
Q: Is there any negotiation in your fees?
A: Where appropriate we will always try to come to an agreement on fees in order to ensure full transparency to our clients . We can also offer fixed fee packages for startups and projects where the scope can be agreed upfront.
Q: Do you use consultants or contractors in your legal work?
A: We do have a network of advisors comprising both specialist law firms and consultants for use on particular projects.