Inclusive practices: Why law firm diversity is key to client retention

"Law is the least diverse profession in the nation," professor Deborah L Rhode wrote recently.¹ This was a reflection on the US legal profession, but my own experience of being a black female solicitor who has worked in private practice and now heads a UK in-house
legal team confirms it.

There is a stark diversity contrast between private practice and industry. I will never forget the first time I walked through the doors of my current employer's offices. Immediately struck by the ethnic diversity of my colleagues, within weeks of starting my role I was told that there were more than 50 nationalities represented at the site. Gender diversity is also reflected across the site and, currently, all of the lawyers in my
team are female.

Across England and Wales, there are a significantly greater proportion of women solicitors working in-house compared with male solicitors: around one in four women solicitors who are employed now work in-house.² One of our external lawyers recently remarked that, having attended a client meeting at our site, he realised that this was the first time in his whole career that he had attended a client meeting
where he was the only man present.

As I have worked closely with other colleagues from a wide variety of backgrounds (many of whom are the first
in their family to get a university degree),
I realise that this is how it should be and
that my experience of working in law firms
for more than 10 years simply did not reflect the level of diversity within UK society.

My current employer is a large multinational corporation, so admittedly this would go some way to explaining the diversity of nationalities represented. Yet the only explanation that I can find to explain the other strands of diversity that are so clearly evident where I work is that my organisation is recruiting and promoting talent in a very different way to many law firms.

I have worked at four different law firms in the UK and was the only Afro-Caribbean solicitor at every one. This in itself speaks volumes, but so do available statistics. During 2014, women accounted for more than 60 per cent of traineeships registered in England and Wales, according to Law Society data. Yet, a bizarre phenomenon happens to women solicitors post-qualification. In the same year, women comprised just 18.8 per cent of the partnership at magic circle firms, 17.5 per cent at US firms and 25.1 per cent at other London firms, research has found.³ Further, the Law Society reports that only one fifth of black and minority ethnic (BME) solicitors are partners compared with one third of white European solicitors.

There are, of course, many diversity strands other than gender and BME but,
for the purposes of this article, my focus
is mainly on gender and BME issues.

Proven strategies

It is important to note that diversity and inclusion go hand in hand. Diversity consultant Verna Myers put this very succinctly when she said that "diversity is being invited to the party, inclusion is being asked to dance".

Frankly, I can understand why a firm might find the whole topic of diversity and inclusion overwhelming and might struggle to implement effective strategies. However, there are some practical tools that have been proven to improve diversity within law firms and would go a long way to demonstrating that diversity and inclusion are being taken seriously by them.

1. Provide unconscious bias training

Implicit (or unconscious) bias is the silent destroyer of diversity in the legal profession.⁴ Favouring 'people like us' is human nature, but this becomes an issue when applied to the recruitment and promotion of staff.

Unconscious bias training is useful in overcoming this. The effect of this is to alert interviewers to their own in-built biases and to limit the impact this has on their decision making. For example, Freshfields is rolling out unconscious bias training to its partners firmwide in a committed effort to increase diversity across the firm.

2. Embrace broader recruitment practices

Firms can adopt recruitment techniques that are more supportive of diversity initiatives. Rare Recruitment (a recruitment consultancy which helps graduates from diverse backgrounds find employment) has developed a contextual recruitment system (CRS) designed to increase social mobility when recruiting.⁵

Based on selection techniques used
for universities which make differential offers to students factoring in contextual data, the CRS works with a firm's existing graduate applicant tracking system and enables firms to take into account the candidate's economic background and personal circumstances. Baker & McKenzie, Hogan Lovells, Herbert Smith and Ashurst have
all signed up to use the CRS.

Similarly, various forms of 'CV-blind' interviews are being trialled by some law firms. Clifford Chance has started CV-blind final interviews with staff conducting final stage interviews only being given the candidate's name. Mayer Brown has interviewed trainees on a CV-blind basis, Macfarlanes has introduced a CV-blind policy for places on its vacation scheme
and Shoosmiths also conduct interviews
on a CV-blind basis.

3. Setting targets (not quotas)

There has been much controversy in the press about the need to set quotas to support a more diverse workforce.⁶ However, I prefer the word 'target' because, when applied to diversity initiatives, 'quota' implies a set number of roles having to be filled by staff who meet certain diversity criteria, almost irrespective of whether or not that individual would have been appointed on merit, a suggestion that is insulting to those concerned. In sharp contrast, a target is a set goal that you can work towards whilst getting in place the necessary support and other structures to meet that goal.⁷

I believe that setting targets is fundamental to meeting any goal and that setting diversity targets enables the success of any diversity initiative. A number of City firms have set gender diversity targets for their partnerships and I have been greatly encouraged by this - without these targets, diversity goals will simply not be met.

4. Broaden access at entry level

I favour a grassroots-level approach to early outreach programmes; focusing on bright, disadvantaged students is key. A successful programme should comprise core elements such as mentoring, sponsoring, coaching, career workshops, open days, special talks and work experience. Bursaries and other financial assistance schemes are also essential in supporting students from disadvantaged backgrounds.

Organisations such as Urban Lawyers and Aspiring Solicitors are dedicated to tackling entry-level issues in the UK and several firms have successfully implemented these programmes, including Hogan Lovells and CMS.

Further, articled apprenticeship schemes offer an alternative route to qualification -trainees are able to study part time and to qualify in six years. Three northwest law firms have signed up to the legal apprenticeship scheme with the University of Law, among which Hillyer McKeown was the first in the UK to adopt it.⁸ International law firm Mayer Brown was the first legal practice in London to sign up to the scheme; its first recruit is due to start in September.

5. Implement retention strategies

Private practice is inherently masculine in character, given the typical long-hours culture in many firms. I am not convinced that enough firms truly embrace a flexible working culture, despite having a flexible working policy.

Women solicitors are disproportionately affected by this. The entitlement to request flexible working has been under-utilised
by women solicitors because they believe
that a request will be taken to indicate
lack of commitment to the job and
therefore their career.⁹

"For me, working mothers in the firm are essential and them having flexibility on where and how they work is equally essential," says Charlotte Taggart, general counsel at Cabot Credit Management.?"[As a client], I don't want a phone call from my lawyer in the office at 7pm. I want to go home and see my children, then do the call at 9pm, knowing my lawyer has done the same and is rested and happy, rather than them having stayed late for just one call. This goes just as much for working fathers too".

Embracing a more agile working style is crucial for the retention of women returners in particular, but also for the increasing numbers of solicitors, whether male or female, who have carer responsibilities outside of work and other personal reasons for wanting to work more flexibly.¹⁰

NewLaw firms such as Obelisk Support, Halebury, Lawyers on Demand, Axiom and Radius Law have proven time and again that it is possible to service clients effectively whilst using an agile working business model. Flexible working arrangements must ensure
a fair allocation of quality work within a firm and should not jeopardise promotion prospects. Enhanced maternity (and, indeed, parental) leave policies also serve as
a powerful retention technique.

Senior role modelling, mentoring, sponsoring and coaching are important tools in supporting the retention of underrepresented groups generally, with supportive networks being a core part of this.

Value of diversity

Diversity of thought is the foundation to unlocking innovation. I have been at my most innovative, creative and successful working in industry and put this down in no small part to the diverse environment in which I work and diverse learning experiences.

Importantly, a measurable commitment
to diversity is becoming a core component of the tendering process undertaken by clients looking to appoint external legal advisers. Almost 40 in-house legal teams have signed up to the Law Society's Procurement Protocol, showing their commitment to consider a potential supplier's diversity and inclusion practices as part of the normal tendering process. All of the UK panel law firms that work with my team have committed to major diversity initiatives.

Dan Fitz, group general counsel and company secretary at BT Group, puts this succinctly: "The intellectual argument for diversity is winning but we will only enjoy its benefits to legal services if we put theory into practice".¹¹

Commenting on the key role that clients have to play in this, Miranda Brawn, a finance and legal expert working in the City, recognises that "the business case for the diversity within law firms will exist if… business clients extend their diversity commitment to such law firms. Conversely, if these business clients do not believe that diversity within law firms is important to them, then no real and compelling business case for diversity
will evolve within such firms".

The business case from corporate clients is compelling. Lesley Wan, corporate real estate counsel at
Lloyds Banking Group, emphasises
this point further.

"As an organisation, it is important for us to work with suppliers who live by similar values to us and who embrace and adopt the same basic fundamental standards that my organisation promotes and believes in."

Adds Bob Harchut, associate general counsel at GSK: "Hiring law firms with diverse teams of lawyers is a significant consideration when selecting outside counsel at GSK, so much so that on average there is more than 50 per cent diversity on the teams of lawyers that we engage through our process for selecting outside counsel on substantial matters."

Research confirms that companies with a more diverse workforce perform better financially. Gender-diverse companies are 15 per cent more likely to outperform the national industry median in terms of financial performance; this figure increases to 35 per cent in relation to ethnically diverse companies, according to McKinsey & Co research.¹²

Global research by EY has also found that female leadership improves both financial and non-financial business performance.¹³ The highest-performing companies surveyed were found to be doing significantly more to encourage the advancement of women than the lower-performing companies.

Diversity initiatives can also serve as a powerful tool to improve employee engagement. I know of at least one top-100 firm that has significantly improved employee engagement across the whole firm due to its implementation of a firmwide diversity initiative.

Social mobility

Social mobility cuts across all diversity strands and is an area that I have made a priority in my diversity work for 2015. To this end, I have been finalising a report focusing specifically on the social mobility issues in the UK legal profession. The report builds on Alan Milburn's 2012 report Fair Access to Professional Careers and will be supported by recent data. I look forward to sharing my research findings with you later this year.

Funke Abimbola is a senior in-house lawyer leading the UK & Ireland legal team for
the world's largest biotech company. She is also a diversity champion, campaigning for more diversity within the UK legal profession.

References

1. See 'Law is the least diverse profession in the nation. And lawyers aren't doing enough to change that', Deborah L. Rhode, Washington Post, 27 May 2015

2. See 'Annual statistical report 2014',
   Law Society, April 2015

3. See '2014 Gender in the Law Survey', Chambers Student UK

4. See 'Hidden prejudice: Tips for tackling unconscious bias in your law firm', Sneha Khilay, Managing Partner,
   Vol. 17 Issue 5, February 2015

5. See 'New contextual recruitment tool launched to improve social mobility', Manju Manglani, Managing Partner, 22 May 2015 (managingpartner.com/node/8020)

6. See 'Strategic equality: Fixing the 'male problem' in law firm partnerships', Manju Manglani, Managing Partner,
   Vol. 17 Issue 5, February 2015

7. See 'Targeting diversity: Why female leadership quotas consistently fail',
   Peter Chadwick, Managing Partner,
   Vol. 16 Issue 7, April 2014

8. See 'Three northwest UK law firms to offer articled apprenticeships',
   Manju Manglani, Managing Partner,
   Vol. 17 Issue 10, July/August 2015

9. See 'An Examination Of Women Solicitors' Careers, Work-Life Balance And Use Of Flexible Work Arrangements' Professor Janet Walsh, Association of Women Solicitors,
   March 2010; and 'Permanently flexible: The future of flexible working in UK law firms', Anna Gregory, Managing Partner, Vol. 16 Issue 9, June 2014

10. See 'The flex revolution: Roundtable on the future of legal services',
    Manju Manglani, Managing Partner,
    Vol. 17 Issue 1, September 2014

11. See 'Procurement protocol', Law Society of England & Wales

12. See 'Why Diversity Matters', Vivian Hunt et al, McKinsey & Co, January 2015

13. See 'Female leadership improves financial performance, survey finds', Manju Manglani, Managing Partner,
    Vol. 17 Issue 5, February 2015