By PATTY TASCARELLA
Pittsburgh Business Times

Reducing outside legal spending is a top priority for corporate legal departments, which in turn has firms paring internal costs to stay competitive, according to a national study by staffing firm Robert Half Legal.

The study, released May 25, examined how firms and legal departments deal with providing and using legal services in the wake of the recession.

Law firms are rethinking service-delivery processes to align operations with how much corporate clients are willing to pay. Some 22 percent of the lawyers surveyed by Robert Half Legal said the greatest challenge for their firms is coping with increased competition, while 19 percent cited meeting revenue goals.

Charles Volkert, executive director, said firms are more closely examining how they compensate employees and that it's not uncommon for them to offer performance- and merit-based pay instead of basing compensation on seniority.

The study was not broken down regionally. But the measures Pittsburgh firms have taken over the past year include later start dates for new-hires, reduced salaries for first-year associates and smaller summer-associate programs, from which future hires are culled.

Although more Pittsburgh firms hired experienced lawyers during the first five months of 2010 compared to a year ago, their expectations for the new additions are higher than in the past when it comes to interacting with clients. Maura McAnney, an owner of Pittsburgh-based lawyer recruitment firm McAnney Esposito & Kraybill Associates Inc., said firms are "looking beyond" applicants' resumes.

"Client service is driving (the hiring process) more than in the past," she said. "They're saying, ‘If there's another recession, who do we want and who will keep our clients happy?' "