Across most industry sectors in the UK, staff and skills shortages have plagued businesses throughout the latter half of 2021 and early 2022, so it should be no surprise that the so-called ‘Great Resignation’ has not neglected the legal sector, where graduate starting salaries for lawyers in London have risen as high as £150,000 and 45% of law firms cite retaining talent as their biggest challenge [1][2].

With both recruitment and retention now front and centre for law practices, it is crucial they are equipped with strategies to attract and keep the right talent. In the face of increased competition from the rest of the sector, implementing these solutions will help firms to weather the post-Covid storm.

Prioritise values and culture

Prompted by the shortage of talent, firms are drastically increasing salaries and even include retention bonuses to keep staff in their seats. Many industries are experiencing a talent shortage too, but for law firms the continuing wage and financial incentive increases are worryingly unsustainable.

Fortunately, there are more sustainable ways in which law practices can ensure they remain attractive. Chief among these is developing strong company values and culture. Without clear values and culture, employees are less likely to identify with their firm, leading to churn. In the post-pandemic environment, the increased lack of in-person contact makes fostering this connection even more important.

Creating such a culture requires more than simply writing core values down on paper, it must be bought into by everyone from the most junior intern all the way to the CEO. Truly great company cultures inherently promote curiosity, respect, teamwork and employee wellbeing. For instance, firms that ranked highly in Roll On Friday’s ‘Best Law Firms to Work at 2022’ survey were commended for encouraging kindness among staff, providing a supportive environment, and prioritising mental health [3]. 

It’s also important that firms place emphasis on diversity and inclusion (D&I). Helping a group of individuals, with completely different backgrounds and experiences, feel safe and accepted while at work is the essence of a successful professional culture and well implemented values.

By embedding values into their work and culture, and remaining authentic to them, law firms will be able to foster better relationships within their teams, in turn building loyalty – a core pillar of employee retention.

Mind the gap when onboarding

While it is of course important to look to non-financial, more sustainable means to ensure your firm is as attractive as possible to candidates, this effort can prove to be in vain if employees are not onboarded properly.

A great way to stay ahead of the curve and socialise employees effectively is through digital onboarding. With many employees choosing to remain working remotely or flexibly, despite eased restrictions [4], digitising this process can reduce churn with these more distant staff members. Digital onboarding drives greater efficiency, seamlessly introducing and educating new hires about their employer, and the company culture, mission, and values.

However, with long-term remote working found to erode team dynamics, effective communication and harmony among teams, firms should look also for ways to encourage teams back into the office to rebuild frayed workplace relationships and lost company culture [5]. Indeed, a reduced office headcount often leads to a loss in collaboration, with a lack of those all-important ‘water cooler’ moments. Many firms are already employing strategies to combat this – from specific office-based team-building days each week and providing in-person workshops to aid career development, to improving hygiene policies – and we are therefore likely to see a shift to greater face-to-face onboarding as we move through 2022.

Retaining diversity

Research shows that companies with unsatisfactory D&I strategies suffer from staff turnover rates 22% higher than those with diverse workforces - yet many law firms still fall short when it comes to D&I.  In fact, while women make up 52% of lawyers, they only represent 35% of partners. As women, and other traditionally marginalised groups, progress in their law careers, barriers to entry can heavily influence resignations – harming not only the firm’s headcount but also its ESG credentials.

Law practices’ D&I strategies should go hand-in-hand with their retention and recruitment drives so as not to create a negative feedback loop, with a drop in staff diversity leading to a reduction in candidate applications.

Indeed, candidates and existing staff are placing increasing importance on strong D&I credentials. Studies have shown that companies with higher levels of gender diversity are linked with lower levels of turnover , and that 35% of an employee’s emotional investment in their work and 20% of their desire to stay at their firm is linked to feelings of inclusion. 

So, for law practices seeking a path through the current skills shortage and ‘Great Resignation’, it is vital that they look within their walls and start with reviewing and improving their own culture and principles, as well as updating their processes to contend with the post-Covid recruitment landscape.