Waging the war for talent
As an HR professional who has worked in the legal sector for 22 years, I think I can say with confidence that I have never known the ‘war for talent’ to be as threatening to law firms as it is right now. For several months, news of ever-increasing salaries for newly-qualified lawyers has been pouring forth, placing firms under increased pressure to follow suit if they are to remain competitive.
Concerns relating to both attracting and retaining talent are certainly at the forefront of partners’ minds. Having discussed the issue with several at Travers Smith recently, they described the war for talent as one of the primary risks to the firm’s profitability – specifically in relation to salaries and the threat from competitors, with worrying implications for costs, turnover and a firm’s ability to resource matters.
But it’s not only about money – one partner at my firm recently recounted to me how a client has renamed the ‘war for talent’ as the “war for benefits”. ‘Non-monetary’ benefits matter more than ever, with the focus on paternity benefits such as shared parental leave and sabbaticals.
The pandemic has, of course, thrown a spotlight on changes to working practices, with candidates not only expecting the adoption of hybrid working but also an investment in the technology needed to support them in working smarter, not harder
The tempo of competition for legal talent also means firms are having to rethink their recruitment strategies and move faster than ever to secure candidates, as not doing so will mean they lose out. Firms will have to try and minimise delays between interviews, increase ‘personalisation’ of the process, and may have to turn to technology to accelerate the speed at which graduates are recruited for training contracts.
And the pandemic has, of course, thrown a spotlight on changes to working practices, with candidates not only expecting the adoption of hybrid working but also an investment in the technology needed to support them in working smarter, not harder.
In addition to creating new tech requirements, many partners are also becoming increasingly worried that remote working will only make the war for talent more complex. Reduced face-to-face time with colleagues will, in my view, influence the culture of law firms and test the necessary personal and social bonds between people. As that erodes, attrition may continue to rise as lawyers will be making decisions around who they want to work for based less and less on familiarity and loyalty and increasingly on pay and benefits.
As such, firms must be willing to change and adapt if they want to survive, particularly when it comes to working models. Hybrid working policies that genuinely foster trust between partners and lawyers can only deliver a positive return if firms have a culture centred around strong relationships and social connections. Partners also need to ‘role model’ hybrid working to demonstrate to lawyers that they too can be trusted to work in an agile manner. Those firms willing to evolve their practices to meet employee expectations will likely be the ultimate winners in the war for talent.
