The legal profession, like many sectors, is experiencing a period of significant challenge when it comes to attracting, retaining and nurturing legal talent. Recent stories in the press have reported the very high salaries for newly qualified lawyers in some London firms, whilst studies are finding evidence of widespread stress, anxiety and burnout across the profession. Legal services providers of all sizes are looking for ways to attract and retain the legal talent they need in an increasingly competitive market.
This article provides reflections and ideas for law firms and in-house legal teams looking to improve their approach to talent management. It draws on the webinar panel discussion hosted by Damar in September 2024 which featured:
- Dan Kayne: former regional General Counsel at Network Rail and Founder of O Shaped
- Hannah Beko: lawyer, coach, trainer and author of The Authentic Lawyer
- George McNeilly: Early Careers Partner and a D&I Global Leadership Group Member at DWF
- Diane Flynn: Experienced HR and change management professional within various law firms, now Director of People and Performance at Damar Training.
The Current Landscape
Recent headlines have highlighted astronomical salaries for newly qualified lawyers in top London firms, with some reportedly earning up to £180,000 per year. But such salaries are only attainable by an elite few, and for those who are willing to sacrifice a work-life balance, with many frequently working 80+ hours per week.
According to Indeed.com, the average lawyer’s salary in the UK is around £50,000. Away from London, salaries are much lower, but there are still significant differentials between the larger regional players and smaller firms, and between private practice and in-house.
These salary divides create several challenges:
- Unrealistic expectations among new entrants to the profession
- Pressure on regional and smaller firms to compete on salary
- Frustration among experienced lawyers, particularly in-house, who may earn less than newly qualified lawyers in private practice.
The legal profession generally also continues to struggle with issues of stress, anxiety, and poor mental health. According to major studies reported in ABA Journal, 83% of lawyers report being stressed regularly, 71% experience anxiety and 28% have experienced depression.
These statistics highlight the need for firms to look beyond salary and consider other tools for creating workplaces that are attractive and motivational for lawyers and non-lawyers alike.
As Diane Flynn commented, “Pay is a driver, it’s a starting point that may attract someone to the business, but it’s the culture and environment that will retain them. In law firms, it takes some brave people to push forward those sorts of changes, to culture, to ways of working, to leadership and management, but it’s important to keep pushing forward.”
Key Factors in Attracting and Retaining Talent
In the panel discussion, several key factors emerged around how law firms can attract and retain legal talent.
The Importance of Culture
While competitive compensation will always be important, our experts suggested that culture and working environment are increasingly critical factors in attracting and retaining legal talent. Key elements include:
- Work-life balance and flexible working arrangements
- Mental health and wellbeing support
- Clear career progression pathways
- Opportunities for meaningful work and professional development
- Inclusive and diverse workplace cultures.
On the topic of culture and wellbeing, Dan Kayne talked about O Shaped: “O Shaped is an organisation that’s leading change across the legal sector by putting people front and centre. Our mission is about improving the legal profession for those who are in it and those who are using it, the clients. But it’s a people first approach, and well-being is number one. It’s a priority, because without that you don’t have anything.”
Purpose and Engagement
Particularly for younger generations entering the workforce, having a sense of purpose and feeling engaged with their work is crucial.
Dan commented: “Making a difference, that’s something that does attract people who have got a real sense of mission. But ask people what the mission of a law firm is – many people will probably say to make money. That’s probably unfair, but that’s how most people perceive it.”
It is critical therefore that law firms articulate a clear mission and values beyond profit and ensure employees understand how their work contributes to broader organisational and societal goals.
Leadership and Management
The quality of leadership and management within a firm plays a significant role in employee satisfaction and retention. Firms should invest in leadership development programmes for partners and managers and create a culture of feedback and continuous improvement.
This is an area where management apprenticeships can be beneficial. Learning in manageable chunks over time, with the opportunity to implement new knowledge and skills directly in the workplace can often be more beneficial than stand-alone courses. At Damar we offer management apprenticeships at levels 3 and 5 and have worked with many law firms to successfully implement these programmes as part of their workforce development strategy.
George McNeilly from DWF also talked about the impact of leadership on diversity and inclusion: “People need to see leaders who look like them at higher levels of the organisation. And so that actually means it’s a 10 or 15 year job for us, increasing the number of leaders from a diversity of backgrounds. It’s a long journey but we are doing this because diversity of population means diversity of thought, which drives improvement for the business and for our clients.”
Diversity, Inclusion, and Psychological Safety
Creating diverse, inclusive, and psychologically safe workplaces is not just an ethical imperative but a business necessity. Firms that excel in this area are likely to see benefits in legal talent attraction, retention, and overall performance. Key considerations include:
- Setting clear diversity and inclusion goals with accountability measures
- Implementing inclusive recruitment and promotion practices
- Providing training on unconscious bias and inclusive leadership
- Creating a culture where mistakes are viewed as learning opportunities rather than career-ending events
- Encouraging open communication and feedback at all levels of the organisation.
Thinking Outside the Legal Box
Our experts discussed typical business models within the legal industry and how these contrast with other sectors.
Dan, for example, talked about the billable hour model which can create perverse incentives and contribute to burnout: “It’s all about the number of hours and revenue brought in, and that becomes your whole, all-consuming data point that you live your life around. It becomes so institutionalized in people and makes them very robotic.”
Hannah drew interesting contrasts with the aviation industry: “One of the biggest issues for lawyers with our mental health and wellbeing is this concern over being perfect and not getting things wrong, not making a mistake because then I’m not a good lawyer. But when you look at the aviation industry, if there’s a mistake or something goes wrong, they want to know what happened and why.”
She also reflected on the professional sports industry and how accepted and critical it is for athletes to rest their bodies: “Our brains are our asset and law firms are selling the brain power of their often very expensive lawyers. In that sense we need to give it a break sometimes and ensure that the machine is operating at its optimum capacity.”
George commented on how fee earners could learn from non-legal staff within their firms: “Lawyers have their areas of expertise but so do other people and 50% of people in law firms are not lawyers. I actually think it’s beneficial for fee earners just to understand what non-fee earners do and to learn from that so they can be better managers and more well-rounded.”
Challenges and Opportunities for In-House Legal Teams
In-house legal teams face unique challenges in attracting and retaining legal talent:
- Limited ability to compete on salary with top law firms
- Pressure to do more with less as businesses seek to control costs
- Lack of clear career progression pathways compared to law firm partnership tracks.
However, in-house roles also offer distinct advantages:
- Opportunity to align with a company’s mission and purpose
- Often better work-life balance than in private practice
- Chance to develop broader business skills beyond pure legal work.
In-house teams should emphasize these benefits in their recruitment efforts and focus on creating engaging, purpose-driven work environments to retain top talent.
Recommendations for Legal Services Providers
The following potential strategies for creating a people-first culture emerged out of our panel discussion:
- Listen to your people
Regularly seek input from employees at all levels about their needs, preferences, and ideas for improving the workplace. This includes being open to perspectives from younger generations, who may have different priorities and insights.
- Invest in leadership development
Ensure that those in leadership positions have the skills to effectively manage and support their teams. This may require additional training, particularly for technical experts promoted to management roles.
- Foster psychological safety
Create an environment where people feel safe to take risks, admit mistakes, and speak up with ideas or concerns. This can lead to better outcomes for the firm and its clients.
- Prioritize well-being at all levels
Implement policies and practices that support employee well-being, from entry-level staff to senior partners. This includes watching for signs of burnout among those in HR or leadership roles.
- Collaborate with clients
Engage clients in conversations about work expectations and the importance of lawyer well-being. Some clients are already including clauses in contracts to limit excessive working hours.
- Address structural issues
Consider how industry-wide practices, such as the billable hour model, impact workplace culture and employee well-being. Be open to alternative approaches that may better align with a people-first culture.
Conclusion
Creating a culture that truly puts people at the heart of the business agenda is not a quick fix but a long-term commitment. It requires ongoing effort, openness to change, and a willingness to challenge traditional practices within the legal industry.
Ultimately, attracting, nurturing, and retaining legal talent requires a multifaceted approach that goes far beyond competitive salaries. By focusing on creating purposeful, inclusive, collaborative and psychologically safe work environments, and investing in leadership development, law firms can position themselves to thrive in an increasingly competitive talent market.
As an apprenticeship training provider specialising in the legal sector, Damar sees apprenticeships as one element of employers’ wider talent strategies, with programmes being most impactful where they are well-integrated and supported by senior leaders. If you’d like to find out more about how Damar can support you and your legal team, please get in touch.