According to a newly published Thomson Reuters Institute report, law firm leaders see talent as their biggest concern. The report summarized interview findings from several dozen global law firm leaders, and explored the most pressuring current issues, which also included the challenge of creating a compelling firm culture.
Leaders expressed concern about the upward wage pressures resulting from the current competitive environment for firm associates. And almost all leaders—regardless of firm size— spoke of feeling financial pressure. Those who feel unable to keep up with the salary increases said that they are unsure of how to recruit and retain associates in this market. Leaders at some of the large firms mentioned that they have expanded their geographic recruiting base. While this has increased the talent pool for those large firms, it also means that smaller and mid-size firms who did not previously compete for talent with large firms, are now feeling the impact.
In addition to recruiting, leaders are thinking more meaningfully about ways to increase retention. They note that, given the recent reliance on remote work, culture-building efforts should be a priority within firms. This means addressing burnout and wellbeing concerns among employees, as well as finding ways to increase “cohesion and camaraderie” among teams that no longer work together physically on a daily basis. Leaders shared that many associates continue to request flexibility.
Leaders also noted an increasing emphasis on creating ESG (environmental, social, and governance) policies and initiatives, which they see as a part of defining firm culture. ESG, they report, impacts both talent recruitment and retention and client relations. With employees working remotely, it becomes more important to ensure that the firms’ values and priorities, and related ESG initiatives are in alignment, and are coming across consistently in both written and spoken communications.
Finally, leaders said that they are worried about client management. With their many internal firm concerns related to talent, culture, and the changing ways of working—including technology—they fear that client relationships will not receive the time and attention they need.