‘The Great Resignation’ - can law firms win the war on talent?
Written by Sarah Robinson
Read about the global HR phenomenon that is causing a stir in legal.
The Great Resignation, more informally known as the ‘big quit’, has been a hot topic this year. In the last 8-10 months the number of job vacancies has increased dramatically. This is particularly evident in the US, with over half the current workforce actively looking for jobs.[1] However, it seems this trend has crossed the pond, as job vacancies have now hit a record high of 1.17 million in the UK.[2]
This shift is making companies paranoid about losing their best talent. Particularly law firms, with one firm going so far as to stop competitors from attracting their talent by removing Associates’ biographies from their website and another offering lawyers bonuses if they remove their LinkedIn presence.[3]
These methods might sound a tad dramatic, but the figures behind the paranoia are real: over 51% of law firms in the UK say that acquiring and retaining talent is a high risk to future profitability, [4] with 31% concerned about their talent leaving for a competitor. [5]
Whilst some law firms can be seen actively trying to stop competitors in their tracks it does make you wonder…
Are law firms doing enough internally to keep talent engaged?
To combat the talent that is leaving in droves, it’s important to take a closer look at the causes of the Great Resignation.
At the very start of the pandemic, attrition rates dropped as people feared redundancy because of the economic crash. As a result, many people argue that there has been a so-called ‘Covid-lag’[6] which means that the desire to move jobs hit again once restrictions were lifted.
Another cause of people leaving is a decreased collective tolerance. The pandemic has put a lot of things into perspective for many people. For instance, whether that’s wanting more flexibility to spend time with family or having a much lower tolerance for a demanding job – employers need to tackle and pre-empt the factors that are causing people to feel burnt out.
Most importantly, employers must establish an open line of communication and tackle grievances before they’re listed back to them in the form of a letter of resignation. Shockingly, 31% of people in the UK said that they would consider leaving their jobs without having another lined up.[7] This seeks to prove that people have lost patience for companies that don’t address their concerns and are even willing to risk financial and job security to move.
Employers’ paranoia about staff retention may seem over the top, but the numbers speak volumes
So, what needs to be done?
Whilst external recruitment keeps businesses moving, it has become apparent that there is not enough internal mobility which is causing people to jump ship. Culture is not created by newcomers; it is established by those who stay at companies for long periods in their careers. Promoting and rewarding time-honoured hardworking staff is crucial. Upskilling, encouraging internal upscaling, and initiating learning & development programs will lead to greater retention rates.
Despite the dilemma that the Great Resignation poses for employers, it is gratifying for recruiters to hear that confidence in moving jobs is on the rise. In fact, for many people now may be the best time to leave. According to data from KPMG [8], there has been a record-breaking growth in starting salaries, pay packages, and bonuses as a direct result of companies attempting to attract and secure talent.
Although money should not be the only deciding factor nor should companies use it as the only attraction, it is understandably a common reason why people leave. With this on the rise, it is vital for job seekers to focus on the career progression and personal development that should come with the promise of increased pay.
If pay & benefits are the foundation for candidate attraction & retention, then finding a firm that is dedicated to the long-term prevention of attrition could be the silver lining.
[1] Future of work: PwC and Social Talent Live Webinar. 'Hiring at scale during The Great Resignation.' 18 Nov. 2021. Webinar. https://fast.wistia.com/embed/channel/6i3ywe7q3u
[2] https://www.bbc.co.uk/news/business-59302574
[3] https://www.law.com/2021/11/09/as-the-talent-war-stokes-paranoia-about-exits-law-firms-employ-risky-retention-strategies/
[4] https://www.thomsonreuters.com/en/press-releases/2021/november/talent-wars-posing-biggest-threat-to-law-firm-profitability.html
[5] https://www.thomsonreuters.com/en/press-releases/2021/november/talent-wars-posing-biggest-threat-to-law-firm-profitability.html
[6] Social Talent Live Webinar. 'Hiring at scale during The Great Resignation.' 18 Nov. 2021. Webinar. https://fast.wistia.com/embed/channel/6i3ywe7q3u
[7] https://blog.shrm.org/blog/10-key-talent-and-leadership-trends-for-2022
[8] KPMG and REC, UK Report on Jobs https://www.rec.uk.com/our-view/reports-jobs
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