Technology Shaping Firm Growth

When law firms decide to hire, what drives the choice? Is it because the firm is growing, or because turnover is high? Our 2024 survey showed that 48% of hiring happens because of firm growth, while 52% happens because of retention and turnover issues. It's almost an even split, but it raises an important question:

Can technology help firms grow without always needing to hire more people?

How Technology Drives Growth

Traditionally, growth meant more staff. More clients = more work = more hiring. But technology is changing this. Tools like automated document systems and advanced case management software let firms handle more cases with the same number of people. This improves efficiency, helps close cases faster, and increases revenue.

That's why investing in good technology is essential. It saves time and keeps costs low. Tracument, for example, reduces the time it takes to request third-party documents from 25 minutes down to just 5. That 20 minutes saved can be used for more meaningful work —the type of high-value tasks legal professionals are trained for. By cutting down on repetitive tasks, firms can control costs and avoid hiring more people to handle the same amount of work.

Reducing Turnover with Technology

Our survey showed that retention slightly outweighs growth as a reason for hiring. Turnover is costly — experts say replacing a professional can cost three to four times their annual salary. That's where technology can help.

When lawyers use modern tools, they often feel more satisfied with their work. Technology takes away boring, repetitive tasks and lets staff focus on meaningful work. It also makes flexible and remote work easier through cloud-based platforms. Younger lawyers especially value this kind of flexibility, which can lower turnover and reduce the need for constant hiring.

Technology also plays a role in career development. Platforms that track performance or provide ongoing learning modules help employees grow their skills without leaving the firm. When staff feel that their firm invests in their professional growth, they're more likely to stay long term.

Balancing Tech and People

Of course, technology alone isn't the answer. Some roles can't be automated, and human judgment is still essential. The smartest approach is finding the right balance: use technology to boost efficiency and satisfaction, while hiring strategically where people are truly needed.

Firms that over-rely on tech risk creating a “cold” work culture, while those that ignore tech may burn out employees with too much manual work. The firms that thrive will be the ones that combine the best of both worlds, leveraging tech for efficiency while nurturing strong human connections with clients and colleagues.

Why This Matters for 2025

Both growth and retention shape hiring decisions, but technology can help firms do more with fewer resources and keep their best people longer. In today's competitive world, this balance could be the key to sustainable success.

As we look to 2025, firms that adopt smarter technology strategies will likely outpace those that resist change. Investing in the right mix of people and tools isn't just about efficiency — its about building resilience, boosting morale, and meeting client expectations in a fast-changing legal market.

Do you agree? Let your voice be heard when our Tracument Legal Survey comes out! If you want to learn more about Tracument, click here.