The Great Resignation – threat or opportunity?
The Great Resignation (or the Big Quit) is a challenge for all professions, and especially the legal profession. Following the COVID-19 pandemic, many workers are reassessing their priorities, while labour shortages in many sectors (including legal) ensure it will be a buyer’s market in recruitment for the foreseeable future.
The threat of losing staff is compounded in the legal sector by the high qualifications required, the investment in training staff, the value of professional experience and – in many cases – the hierarchical structure of firms.
Most readers of this blog will probably know of at least a few legal professionals who have retired early in the past couple of years, perhaps influenced by the pandemic. They may leave a big gap, particularly if there has not been enough attention paid to succession planning.
What’s probably even more of a threat to law firms though is the finding by the International Bar Association last year that one in five young lawyers were thinking about leaving the profession completely, and 54% said they were “somewhat likely” or “highly likely” to move to a new place of work. Another survey found that 70% of corporate lawyers and 58% of law firm lawyers were somewhat or very likely to leave their current position in the next year.
It seems like the biggest challenge for law firms is to keep senior associates, and throwing more money at them may not be the answer: recruiters report that responsibility, work-life balance and quality of work are all priorities for this group. This is particularly the case if partnership is taking longer to achieve: one lawyer at a large multinational firm recently told me that it is now more likely to take 14-15 years to become a partner compared to 10-12 years in the past.
The pandemic has also provided opportunities here, though – aided by technological developments. As Karen Morton of Cleary Gottlieb says in our interview this month, the move from business travel to video conferences has given more junior legal practitioners opportunities for direct client contact. Based on this, they can develop relationships with clients and gain a better understanding of business needs – and hopefully find more fulfilment in their role too.
Some practitioners may perceive this as a threat. I know that in IP (the field I know best) many firms have traditionally operated a model where the partner monopolises client contact and manages a team of junior professionals, trainees and paralegals who handle the work. But that approach is not only outdated; it is also high-risk for firms.
Recruiters emphasise that employees are increasingly looking for fulfilment, flexibility and opportunity in their work. Thomson Reuters has a nice infographic on “5 key tactics to retain the best legal professionals” (in summary: purpose, intention, training, legal tech and benefits).
So law firms should consider giving associates responsibility and visibility – including when it comes to thought leadership. I have worked with several junior lawyers and IP attorneys to create articles and reports, and they often bring a refreshing perspective based on appreciation of the latest technology, in-depth experience of a client’s needs and a willingness to think creatively.
There have been some reports that, in order to deter competitors, law firms have tried to hide their associates. But, if they want to retain them, maybe they should be doing the opposite – giving them the opportunity to write content, engage with associations and build their reputation. What are they afraid of?
“The only thing worse than training your employees and having them leave, is not training them, and having them stay.”
Henry Ford