The legal profession has historically been resistant to change; however, the impact of Covid-19 on all economic sectors worldwide also reached legal services. Talent management departments at law firms constantly face the challenge of retaining talent and offering alternatives that balance the firm’s objectives with those of its lawyers.
The debate continues, as a good salary is no longer enough for lawyers if they lack flexibility, training programs, or compensation plans. Undoubtedly, ensuring lawyers’ well-being is also essential to preventing a brain drain in an increasingly volatile job market.
Professionals who are more emotionally stable are happier and perform better
Sharon Meit Abrahams, an expert in legal talent development, began by separating talent management from HR, because in her view, “in many firms, the people responsible for working with lawyers are not in the HR function. Many talent managers are former lawyers and are therefore deeply involved in creating an environment that encourages lawyers to be productive and happy. That said, it is the individual’s responsibility to build the career they want and the firm’s responsibility to provide support when appropriate or necessary. For example, all firms, regardless of size, should offer competitive benefits and compensation. Firms should have policies and procedures that support a hybrid workforce if that fits with the firm’s culture. If not, the firm should communicate its expectations.”
In this regard, Eugenia Navarro, a strategic management consultant in the legal sector, agreed that HR departments bear no responsibility for the decisions of young lawyers who, on occasion or under certain circumstances, opt for jobs that offer, for example, a more flexible environment than others. “Personal decisions are just that, personal, and it’s difficult for them to work in a firm environment thinking they must conform to a life vision that doesn’t align with the realities of the working world. Firms are demanding work models; they require effort, extensive preparation, and must respond to the demands of increasingly sophisticated clients, but they also offer career development opportunities and compensation, which, in the case of large business law firms, are commensurate with those demands. Not all young people will want to work for a firm, but those who do should know and understand its model.”
Another issue is that companies are trying to adapt to flexible and remote work models as long as objectives are met, but first they have to earn that trust. I believe that attracting talent will come not only from monetary compensation but also from being able to help their professionals have a balanced personal and professional life, creating more emotionally stable, happier professionals who are capable of higher performance.”
Juan Paulo Rodríguez, a specialist in the management of law firms and corporate legal areas, legaltech, business consulting, and a partner at Gericó Associates, stated that it is “essential that the talent management area can simultaneously combine the priorities of the firm and those of the lawyers, taking into account the firm’s culture, the work environment, and the current and changing composition of the team, which includes lawyers of different ages and generational preferences.”
Meanwhile, for Miguel Ángel Pérez de la Manga, a consultant in the management of law firms in Spain and Latin America, “the responsibility and importance of HR departments is very high, but their room for maneuver is limited. New generations share certain homogenizing factors that determine their behavior. These homogenizing factors are socio-economic and vary from generation to generation. While some generations can demand these things, others could not. External issues can be addressed, but the capacity for action is often limited.”
Law firms are human capital and knowledge companies
“Just like in the business world, business leaders must always develop their staff, especially when it comes to leadership and succession planning. If new generations don’t grow, law firms will be left without lawyers to replace them when the more senior ones retire. I’m seeing this with many of my current clients, who are rushing to find someone to hire to be the next leader, instead of developing those already at the firm,” warned Sharon Meit Abrahams.
“Human capital is the most valuable asset of any company,” stated Eugenia Navarro, who asserted that companies must begin “to have less rigid career paths, ones that adapt to the value each person can offer at their stage of life, especially those the company is investing in. We must reward the best and those who are able to earn trust.”
Young people have made a lot of progress in work-life balance, and I think that’s great. Companies are trying to adapt by making career paths more flexible and not so rigid. HR departments need to understand what talented young people are looking for and try to improve in areas that align with the company’s goals.
According to Juan Paulo Rodríguez, the firm’s various administrative support areas “must adjust their processes to favor talent retention within the firm. The firm’s institutional development must be adjusted to allow for the required long-term profitability and to meet the development objectives of its professionals.”
“Law firms are human capital and knowledge companies. The development of human capital is essential; it represents the improvement and protection of the firm’s main asset. A firm that does not nurture, train, incentivize, and motivate its professionals may have problems in the medium term,” warned Miguel Ángel Pérez de la Manga.
Retirement in law firms and competitive environments drives away young talent
“Lawyers don’t see a future at the firm because the most senior lawyers aren’t retiring. When senior lawyers don’t leave the firm, it limits the growth of those below them. When I analyzed exit interviews, it became clear that partners between 35 and 45 years old were leaving because they didn’t see future growth in their practices. Many firms have eliminated mandatory retirement, so many baby boomers are choosing to work until their late 60s and even into their 70s.”I have met some lawyers who are still practicing at 80 years old.
Senior lawyers are also failing to introduce clients to their junior associates. This is crucial for a lawyer’s skill development and future business growth opportunities. Through client interaction, lawyers improve their communication and project management skills. They also learn to ask questions and solve problems in various situations. This is important for succession planning to retain clients once a senior partner retires.
Often, junior lawyers think that if the firm isn’t investing in them, why should they invest their careers in it? This younger generation needs more guidance and direction on how to develop and succeed in their careers. It’s a very different philosophy from that of the baby boomers, who had the ambition and drive to achieve financial success,” said Sharon Meit Abrahams.
In contrast, Eugenia Navarro believes that “many young people are not willing to dedicate their lives to a profession as demanding as that of a lawyer in a firm. These are competitive environments, with intense work and a very rigid hierarchy. A model that doesn’t fit with the life choices of many young people.”
Reality and preferences of the new generations
In the area of corporate governance, firms and their lawyers have a duty to ensure the inclusion of diversity and equity policies, flexible work schedules, the implementation of training and professional development programs, and a compensation plan for associates and partners. “I believe that diversity enriches decision-making in any business model, but without making it an obsession or artificially forcing it. Flexible schedules are good to the extent that they can be implemented, but a lawyer depends on their clients, and even if clients are educated, it’s not always possible. Professional development is key because it establishes clear rules of the game, and lawyers and professionals know which rules to follow. The compensation plan is crucial for understanding what type of profile you are incentivizing, especially in the commercial sphere,” said Eugenia Navarro.
Meanwhile, Sharon Meit Abrahams agreed that “these are all structures a firm must have to support the growth of its people, as well as the firm as a whole. Without them, why would a young lawyer want to join the firm?”
According to Juan Paulo Rodríguez, “firms must adjust and develop new talent management strategies to adapt their policies and processes to the realities and preferences of new generations. By adapting their career plans and development programs, they can reduce turnover and ensure they have the necessary team in the future to provide the best service to their clients. To improve talent retention, firms must focus their efforts on different factors, not just compensation and financial aspects.”
Finally, Miguel Ángel Pérez de la Manga agreed that all these issues are important and necessary. “Some are based on principles of fairness and meritocracy (equity, inclusion, diversity—although there are many interpretations of what diversity entails), and others are part of the necessary management for a law firm, such as training programs or compensation plans for associates and partners. But the goal is always to create firms with sustainable and profitable models, to offer career paths and compensation commensurate with their professionals, and thus provide quality services to clients, which is what truly matters for the firm.”
The governance of a firm, as it grows, has other very interesting facets and complexities, which we work on very thoroughly due to their sensitivity and importance.”
Honesty and stimulation in the work environment, key to talent retention
Eugenia Navarro believes that “the key to attracting and retaining talent is honesty, being very clear from the outset about how the work will be done, the ability to inspire enthusiasm for cases and clients, and everything that helps to balance people’s lives, creating lawyers capable of working harmoniously in their professional environment. I think it’s essential to reward the best.” For her part, Sharon Meit Abrahams specifies that “having an excellent professional development infrastructure is vital. This includes: 1) a task assignment system, 2) orientation programs, 3) mentoring, 4) solid legal training and advocacy skills, and 5) a performance evaluation process that includes continuous feedback.”
Culture is created through in-person interaction
Although teleworking became a common practice during the pandemic and it was thought that it would be a model that might be maintained, the truth is that, in the case of law firms, although some of their lawyers are reluctant to return to the offices, many or most of them have already returned to in-person work, but with more or less flexible plans.
On this issue, Eugenia clarified that “young people need in-person interaction in their early years; it’s good for them and it’s how they build a culture. I don’t think 100% in-person interaction is necessary, and I believe flexibility should be guided by the needs of clients and the development of an internal culture. Every firm is different, but they must establish guidelines that meet their specific needs.”
Sharon Meit Abrahams went on to say that the return to in-person work will depend on the firm’s culture. Young lawyers want to be in contact with those who are training and developing them. Offering training sessions, mentoring opportunities, and a hybrid model is a step toward greater flexibility.
Working remotely certainly offers great flexibility, but is it possible to be creative in this way? To this question, Eugenia responded that it is possible to be both creative and productive, although “it will depend on each person’s character and circumstances.” Sharon also agreed with both statements.
Now then, in terms of learning, do you learn more or less in an office versus while teleworking?Eugenia believes that young lawyers need to have close contact with their superiors, “especially at the beginning, to create and foster a strong work culture. This isn’t just about acquiring knowledge, but also about learning to collaborate, getting to know their peers, and understanding how a firm operates.” Sharon agrees that young lawyers don’t learn nearly as much when working remotely as they would in an office. “They miss out on the natural one-on-one learning that takes place. Law firms need to train their partners to be intentional about their training and mentoring. I recommend that firms offer programs that encourage lawyers to come to the office at least once a week or twice a month. This programming could include training in practice areas, coaching in business development skills, and general lawyer skills programs.”
The paradigm in the legal sector has changed. Young talent approaches their career path very differently from the traditional one. They don’t think in terms of a job for life, and although they are preparing and training themselves, their thinking and even their commitment are far removed from that of lawyers from recent decades.…So what is happening? Could we speak of a regression in the legal profession?
“I hope and wish that they are preparing themselves. Not all lawyers who start at a firm will be able to become partners, some by choice and others because they won’t meet the firm’s requirements, but those who do will be highly prepared, because the highly competitive environment will demand it,” stated Eugenia, who also said that although she cannot generalize, she believes that “the culture of hard work is being lost in the new generations who want everything fast, they are not used to long-term results.”
Sharon, for her part, agrees that the practice of law will change, especially due to AI, and that young talent “wants everything fast and easy; only time will tell how it will affect law firms, but it will make it harder to find good quality people to hire.”
Lawyers don’t know everything
Law firms—as part of the transformation of the legal industry in recent years—have understood the importance of incorporating diverse, non-lawyer profiles into their teams and even into partnerships. Eugenia Navarro confirmed this, adding that “we are already seeing appointments of HR directors, COOs, knowledge management directors, and corporate directors. I think it’s important to recognize management roles at a time when competitive strategy is key in the market. Lawyers don’t know everything, and especially not management; firms need professionals who can apply business techniques to ensure their success in the market.”
Sharon added that “I can only speak to this from the US perspective, which primarily does not allow non-lawyers to join the association. But divergence of thought is something that is talked about, but rarely addressed in practice.”
According to Juan Paulo Rodríguez, “increasingly, law firm management must be open to establishing closer ties between the firm and its clients. For example, some firms are incorporating not only lawyers but also legal project management (LPM) specialists into complex projects. With this, they aim to support their clients not only in legal matters but also in achieving better results in their businesses and transactions. Both in advisory and internal support teams, professionals who contribute to improving legal operations can contribute to the development of the firm and its clients.”
Miguel Ángel Pérez de la Manga asserts that “for many years there have been non-lawyer profiles on the teams. The entire professional support structure is made up of other profiles. In the service area, some profiles have been incorporated, but it depends on the practice area. Economists have been common for some time, although we are gradually seeing other profiles.”
In partnerships, it’s different. Law firms are owned by professionals with the ability to generate business, and this ability is linked to technical expertise. For this reason, it’s common for firm partners to be lawyers. However, the market has seen some movement in the opposite direction, incorporating professionals who have been part of the management team for years as partners. These tend to be large organizations, with management teams sized according to the firm’s size.
The role of the lawyer goes far beyond the legal
In such a competitive environment, where transformation has forced lawyers to adapt to the new needs of the sector, we asked the specialists who will come out on top. Eugenia replied that it will be those who “calibrate the work, automating the most repetitive and tedious tasks and freeing up time to dedicate to issues of greater added value or… to taking a walk.”
Sharon responded with a question, “Who knows?” “I would say that those who work hard and ‘make it’ will either move up in their firms or leave and start their own.”
Juan Paulo Rodríguez, on the other hand, emphasized that “long-term sustainability is closely linked to talent retention. The firm’s culture and development strategies must be adjusted and aligned with new realities to reduce turnover and strengthen relationships with current clients, generating new business opportunities with both new and existing clients.”
Although there has been much talk about the possibility of lawyers being replaced by artificial intelligence, in my opinion, the lawyers who know how to take full advantage of the benefits that technology offers to work more efficiently and satisfactorily will be the ones who are most successful in the future.”
Miguel Ángel Pérez de la Manga concluded the debate by noting that “there are complex practice areas that provide significant value to the client, require fluency in an additional language, and demand more than just legal expertise. I believe that professionals with additional and complementary knowledge to law (such as finance or technology) will have a guaranteed successful career. And of course, and I think most importantly, those who cultivate strong interpersonal skills from the outset, skills that over time develop into a network that generates clients. This remains a differentiating factor; lawyers capable of generating business for themselves and their teams are still a minority.”
