LSAG Legal Briefs - Vol 2

diversity is easier said than done, our results show that the legal sector is embracing the challenge. Associate Ten-

and more, firms are placing higher consideration in today’s decision making on the younger generation. Today’s younger attorneys are the future legacy of law firms and in order to retain this talent, shifts to the way the younger generation views technology, client services, work-life balance, and overall difference of work desires and styles will be leading firms’ long-term decisions and succession plans. Firms are spending a significant amount of time and resources on improving the recruiting and retention of their attorneys. The following include the top five efforts to improve recruiting and retention implemented by firms in the past year: 1 Increased salaries 2 Expanded mentoring 3 Invested in technology 4 Offered flex time 5 Offered more business and client synergies Maintaining and growing profits while controlling overhead continues to be a constant challenge for firm leadership. Four years ago the percentage of gross revenue spent on real estate was 7%, which supports firms continuing to densify their real estate and decrease per-attorney annual lease costs. The close evaluation of an individual partner’s profit and loss, line item costs, and their pro-rata share of real estate costs is impacting real estate decisions (and pushing for cost reduction). In fact, over the past three years, a greater transparency in sharing overhead costs with the partners is now being broken down and shared on a per attorney and equity partner basis. The chart on the following page represents the percentages 57% 54%

diversity do not affect business opportunities” from 25% to 19%. The above statistics represent the biggest single-year shift and improvement on diversity in the legal sector since the survey’s inception six years ago, statistically proving that improved diversity within the legal sector and client demands for diversity cannot be understated and is thus significantly impacting how firms are addressing a more diverse attorney base. What Does the Future Hold for Diversity? In looking to the future, a solid 47% of firms noted that they “have a mandate to improve diversity in the next five years.” Another 31% noted that they “somewhat have a mandate to improve diversity in the next five years,” while just 23% indicated there is no such mandate. Some firms have shared their creative tactics for improving diversity, including the hiring of talent and diversity directors, providing law school scholarships to diverse candidates with the goal they will join their firm when they graduate, and providing billable credit hours for diversity activities. While improving

Year Career Goals & Efforts Taken to Retain Attorneys

Increasing slightly from 45% to 46% this year as it relates to the question “Where do you see yourself in 10 years,” is being a “partner at current or alternative firm.” Increasing 5%, a significant change in the number two position, is associates leaving their firm for an “in-house counsel opportunity.” Long-Term Millennial Impact No doubt the information above and pending demographic shifts will have a long-term millennial impact. Per our Benchmark Survey respondents, 81% of the firms noted that they “take into consideration the millennial impact and overall demographic shift, but that it does not drive all of their firm decisions.” Another 10% noted that “every decision they make takes this fact into consideration.” More

Creation of firm-wide diversity mission statement

Active participation in nati diversity organizations Creation of a n Creati

INITIATIVES IMPLEMENTED TO IMPROVE DIVERSITY:

23%

Other

31%

Hiring of Chief Diversity O cer or similar position

51%

53%

Creation of mentorship program

54% 53%

Creation of a nity groups within the firm

Active participation in national diversity organizations

57%

Creation of firm-wide diversity mission statement

18 | Legal Sector Advisory Group | ADVISING FOR EXCELLENCE