Originally published in The Legal Intelligencer
Since April 2021, more than $19 million US employees quit their jobs, spiking turnover and turmoil across sectors. Another 40%, approximately, are at least somewhat likely to do the same in the coming months according to McKinsey’s report on The Great Attrition. These figures are sobering. And while they represent a broad range of industries, they reflect equally the legal sector’s experience.
As the “war for talent” rages on, law firms of all sizes are grappling with widespread poaching, understaffing, salary wars and burnout. This talent shortage comes at an especially trying time – during a pandemic and on the brink of a highly nebulous return-to-office. Permanent transformation of law firm work process, culture and more are underway.
Leaders feel ill-prepared – and with good reason. Few have enjoyed the benefit of formal leadership training, and most have been pummeled with a barrage of high-stakes, sometimes daily decisions for going on two years. Burnout is a real risk, for leaders, lawyers and staff alike, and as with virtually everything the past two years has thrown at the world, the solutions are far from simple. As we close in on a new year and, for many, a formal re-opening, what can leaders do to prepare themselves and their firms effectively and productively for the year ahead?
1. Focus on the “right” stuff
In leadership and in life, people tend to focus on shortcomings – to obsess over mistakes and imperfections. They dedicate inordinate time and energy to righting the wrongs, rather than replicating the rights. This mindset is counterproductive. It is also one of many reasons strengths-based leadership approaches are so widespread – and so effective. Understanding and building on what one does well is a proven strategy to optimize growth and effectiveness.
Organizational thinking can benefit from the same mindful focus. While it is tempting to respond to turnover by aggressively attempting to retain those about to walk out the door or sweeten the appeal for new entrants, don’t be so hasty. Psychology shows people place greater value on the potential for greatness over actual greatness – in professional sports, for instance, recruits often enjoy an inflated perception of their worth compared to those who have a demonstrated track record.
To align emphasis and messaging with what is best for the firm in the long-term, target scarce resources – yes, including money – on existing talent, especially those who are demonstrating a keen interest in helping the firm advance and progress. Relatedly, do not overvalue the new over the old, using inequitable approaches to attract talent that current professionals do not enjoy. While leaders cannot ignore the reality of needing more talent – though future paragraphs may suggest that is not entirely true – they can use their investment decisions, actions and communications to emphasize what is working over what is not.
2. Rethink, revise, reimagine
During the pandemic, many law firms shed administrative staff, legal assistants, paralegals and even underperforming lawyers (quietly). Lawyers and professionals learned to work remotely, streamline processes and rely more heavily on technology (and themselves) to accomplish tasks previously delegated to others. While some of these cuts were certainly financial imperatives, many were not. The pandemic pressured many firms to act on long overdue decisions or to accelerate trends already underway, such as shifts to a higher lawyer to assistant ratio. Whatever the reason, the outcome is a new, “lighter” operational model. For many firms, this new approach is as good as, if not better than, before.
Imagine, now, applying the lessons learned through this transition to the current challenge facing the industry: turnover. What if, as law firms shed talent, rather than automatically responding with an “all hands on deck” recruitment and replacement effort, leaders instead pause, step back and assess: is the current model the right model?
Ravin Jesuthasan recently spoke at Thomson Reuters COO CFO Forum on the Future of Work. In his prospective model, tomorrow’s organizations function much differently, transacting on skills rather than jobs in a flexible model where an individual’s role is neither finite nor fixed. Reskilling and upskilling are increasingly common tools, both of which, notably, align well with the demands of Millennials for whom continuous learning opportunities and flexibility are key factors in employment decisions. Replacing those five departing Associates with five replicas may not be the best solution. Alternative paths may include structural changes (e.g., pooled lawyers or team-based delivery models), alternative career paths, contract lawyers, process improvement, project managers, business professionals, and more.
3. Know what really matters
Another key finding from the McKinsey study is a marked disconnect between what is important to employees and what employers think is most important to employees. This disparity is critical. Law firm leaders today seemingly have one primary tool they’re deploying most often in the “war for talent:” money. Yet research from myriad sources – The American Lawyer included – demonstrates higher compensation is not the answer. In fact, simply throwing money at the problem can be detrimental. Compensation wars send the message an individual’s connection to the firm is merely transactional. What people want is much less tangible.
The survey shows two of the most important factors to employees – valued by manager and sense of belonging – were rated less important by employers. Other highly important areas – valued by organization and work/life balance – are those where law firms are notorious for struggling. Most often, discussions in law firm executive board rooms and strategy committee meetings focus on the concrete – what are the structural changes and operational shifts the organization can make to address turnover. Yet the harsh reality is these changes rarely address the crux of the issue.
Consider, for example, this list of behaviors recently surfaced at a law firm retreat to describe ways in which others behaved in scenarios when they felt they did not belong:
· Talking in a different “language”
· Talking over/interrupting
· Not making eye contact
· Turning away, closing off
· Not offering a greeting
· Ignoring
· Whispering
· Not engaging
· Not informing
· Forming a circle without you
· Being subjected to interrogation “What are you doing here?”
· Being questioned/challenged
· Being physically excluded
Equally detrimental and not on the list is the connection of one’s worth to the hours they bill or dollars they originate. Sadly, many of these behaviors will not only look familiar, they will be recognizable in one’s own experience at their organization. They may even, to those honest enough with themselves to admit it, reflect actions in which they personally have engaged under certain circumstances.
Leaders can only address turnover effectively when they understand the underlying motivation for why people are leaving. Cultural assessments and employee engagement surveys can shed some light, yet not enough law firms dig deep enough or, perhaps more accurately, tackle the most daunting results – which brings us to our fourth point.
4. Do the (hard) work
Far too often, law firms applaud their collegial cultures without taking the time to listen and contemplate what goes on under the surface. Short-term or more tangible solutions, such as offering perks, adjusting compensation or replacing a Practice Leader, are far more typical solutions to an increasingly complex problem. Yet deep down, the lawyers know that’s not the solution. When properly engaged, partners acknowledge the harmful effects of what goes on: the culture of exception, the toxic leader down the hall, the underperforming partner, the lazy office manager, the bully lateral. So why not do something about it?
As law firms enter the new year, with return-to-office looming, an onslaught of work (for which they are grateful) and a revolving door of talent, a commitment to exploring deeper, more meaningful change can go a long way. And to bring it full circle, focus not on the bad apples, but on accentuating the positives. What does the firm want to see more of?
Adequate leadership training, thoughtful professional development, engaging mentorship and sponsorship, effective management toolkits and resources, deliberate and intentional culture cultivation and conscious efforts to nurture an inclusive workplace top the list. Perhaps most important is to truly embody and model these efforts from the top down. Everyone knows if the leaders, rainmakers and partners do not make these a priority they will quickly become “pet projects” to which lip service is paid and around which little changes. Trust that current and future talent will quickly discern the difference between those firms committed to making a better place – and those that aren’t.
Marcie Borgal Shunk and her colleague, John “The Purple Coach” Mitchell recently hosted a complimentary webinar on this topic. Leading a Law Firm Through the Great Attrition. Click here to watch the replay.