LSAG Legal Briefs - Vol 2

Today’s Approach for Associates – Priorities, Interviewing, & Business Development By 2025, more than 55% of the U.S. Prime work force will be millennials – those born between 1981 and 1996. This will be the largest demographic shift in American history. The legal sector is already experiencing the effect of this transition with an even greater impact on the legal sector for the years to come. One of the primary reasons being the different priorities of a young attorney today compared to two, three, and four decades ago. This is impacting the way firms are not only recruiting and retaining young attorneys, but it is also impacting areas such as succession planning, attorney mentorship, technology investments, and the re-thinking of many of the firm’s business decisions. We asked our benchmark survey respondents, what are the top three items of importance they perceive as the priorities of their young associates today? 1 Compensation 2 Work-life balance 3 Mentoring by senior attorneys Attorney Departures Associate and partner departures have many common causes. The top two reasons for an attorney’s departure are due to “in-house counsel opportunities” and “compensation.” However, what is interesting are the other reasons for an attorney’s departure, which include “retirement” which was up 6% from last year, and “termination” (primarily due to attorneys’ under perfomance) which also

FIRMS INTERVIEWING ASSOCIATE CANDIDATES DIFFERENTLY THAN IN PAST YEARS:

More Flexible to Support Work/Life Balance

We Have Not Changed

Clearly Define Billable Hours and Business Development Expectations

44% 41% 39%

More Transparent About Business and Operations

Ask Priorities and Goals in Joining a Firm

32%

Value a Well-Rounded Candidate More Than Before

24% 21%

Other

4%

ASSOCIATES INVOLVEMENT IN BUSINESS DEVELOPMENT:

20% Yes, very active

20% No, but want to be active

52% Yes, on a limited basis

8%

No, have no interest

of attorneys was a regular course of action. Today, firms are more closely evaluating underperformers and if they are not able to increase performance they are left with no choice but to terminate an attorney. These types of evaluations are supporting more and more a fundamental shift in the legal sector to a more corporate approach that closely looks at the bottom line in order to make tough decisions

had an increase from last year of 2%. This also correlates back to business development success, individual partner profitability, and overall compensation and profit distribution being realigned to incent the attorneys that are successful at business development and client growth. The above said, it has only been in the past decade that termination

16 | Legal Sector Advisory Group | ADVISING FOR EXCELLENCE