Advance planning

Staff retention is a perennial issue for law firms. The loss of senior lawyers in particular can present special challenges; years of training, accumulated technical expertise and clients can be lost when they leave a firm. The ability to identify and address the reasons for their loss is therefore crucial.

Current landscape

According to the founder and director of legal recruitment specialist JMC Legal, Jason Connolly, a significant cause of lawyer mobility is a desire to achieve career progression. “People in the younger generation are much more aware of the need to take their careers into their own hands and feel they need to move to realise their career plans,” he explains.

In some cases, firms may be unable to offer lawyers the career path they seek in the timeframe they want. Yet Connolly notes that often firms lack the ability to properly assess their lawyers or understand how to provide them with the opportunities and support they need to progress. “Firms must look at how they can assess, encourage and develop their people so that their expectations can be managed and their potential realised,” Connolly insists. A vital part of that process is ensuring that the path to promotion – especially the road to partnership – is clear.

Promotion through partnerships

Partnership has long been the holy grail for lawyers in private practice. And while a growing number of younger lawyers are less interested in a partnership role, plenty still are. For firms, the quality and character of those promoted are inextricably linked to the firm’s success, so they need to ensure that their selection process is as effective as possible. It must also be fair and transparent, and should be seen as such by lawyers in the firm.

It is not surprising, then, that firms have been honing their partnership selection processes and ensuring that these processes are known and understood within the organisation. Andy Poole, a partner of accountants and consultants at Armstrong Watson, and the head of its legal sector team, has seen the process of creating partners in law firms evolve over time. “In the past, an individual would be tapped on the shoulder and invited to become a partner. These days, it’s become more open; firms create career progression plans for potential candidates, with set metrics involved. Formal applications and presentations are often used.”

Tina Wisener, chief executive officer of law firm adviser Doyle Clayton – which is known for its expertise in partnership law – has also seen some firms adopt ordered tracks to partnership. “In many traditional limited liability partnership [LLP] law firms, the selection process can be quite rigorous. More firms are now LLPs, and around 20 are employee-owned – as ours is – although we have shareholder partners.” Whatever the structure, though, the selection process is often similar, she notes.

Most partnership selection processes are spread out over several years and call for candidates to demonstrate their value to the firm, how they align with its strategy and their commitment to its values. Frequently, these processes also involve some planned mentoring and support. Similar processes can be used for salaried partners or fixed share partners who want to go to the next level. Wisener says that succession planning is also an important factor in ensuring that the promotion process is fair and there are opportunities for those who want to become partners. Mandatory retirement ages are becoming less common because of the risk of an age discrimination claim, although not having them does not mean that a claim cannot be made. This, too, highlights the importance of having a transparent process, Wisener stresses.

Criteria

As well as developing structured promotion processes, firms have been focusing more on the attributes partners need, which can lead to a broader range of people being considered as candidates. “Too often, people became partners because they’d worked at the firm long enough or had gained some technical skills. A primary focus, too, was a potential candidate’s financial performance and ability to win work,” observes Poole.

Placing too much emphasis on these skills may mean that the right balance of behaviours is not considered and can also prompt undesirable habits like work hogging. Firms have now realised that the scorecard of financial and non-financial attributes must be balanced. Partners need qualities like leadership skills, the ability to engage in teamwork and people management, strategic sense, a collegiate approach, administrative ability and commitment to the firm’s values. “There’s also what I call the ‘good egg’ test – determining whether the individual will be compatible with their fellow partners and managers, which is vital,” Poole adds.

Wisener has also seen firms move away from focusing on a candidate’s capacity to generate revenue. “Law firms are acknowledging the importance of ‘softer’ skills and promoting people who align with the culture and values of the firm. They are striving to be more collegiate, inclusive and good places to work. They’re competing for the best graduates, and they need to ensure that potential partners will be team players.”

The need to demonstrate these attributes must be clearly set out so candidates understand what is expected of them and the skills they need to acquire to progress. “You can have problems if your partnership selection process isn’t well publicised,” Wisener warns. “The more transparent you are, the fewer disputes you will have and the lower your staff turnover is likely to be.”

And, as Connolly has pointed out, firms must play a dynamic role in helping lawyers learn and develop. This is especially so, he believes, in the case of the younger generation, who not only lost the opportunity to work with others in person during the pandemic but who are also more accustomed to communicating online. “Add to that the continued practice of working from home, and many of them may need a lot of guidance and support in developing interpersonal skills.” He warns that firms that constantly press lawyers to concentrate on fee earning will restrict their ability to hone their skills and network, which can lead to frustration and staff attrition.

Mills & Reeve has striven to make the road to partnership as transparent as possible by identifying several areas in which candidates must demonstrate ability, reports Rachel Donath, director of learning and development at the firm. “The first area is what we call ‘leading business’: a track record of winning work, building strong client relationships and delivering profit. The second is ‘leading others’: the ability to motivate and develop others and be committed to our culture. The third is ‘leading self’: showing a track record of growing as a leader and developing oneself.” These areas, she concludes, are an essential part of deciding who will become a partner in the firm: “We’re very focused on them.”

Selection and support

All lawyers at Mills & Reeve – which has received notable recognition for its staff management, including appearing regularly in the Sunday Times’ Best Places to Work – are supported in managing their careers and acquiring the skills necessary to progress. The road to partnership, which can take several years, is well marked out from the beginning. “It’s a very open, clear system, and there’s lots of support,” remarks Donath. Every 18 months, the firm runs a ‘How to become a partner at Mills & Reeve’ Zoom session, which anyone can join. New partners also provide stories about how they gained their partnership, which are posted on the firm’s learning hub. Similarly, a two-day workshop is run for principal associates, in which they can discuss their career options and get 360 feedback; and they have triannual conversations about their career with their line manager.

Another initiative, created five years ago, is the use of talent partners in each business section. Those in this role act as a sounding board for lawyers and can challenge section leaders in their decision-making. This initiative has been a big success, says Donath: “It shows our commitment to supporting talent and aiding an independent assessment of someone’s potential.”

Lawyers who want a partnership are nominated by their practice leader to participate in an advanced leadership programme and undergo developmental profiling by an occupational psychologist, who identifies their strengths and those areas in which they need to develop. A development plan, normally covering 18 months, is created, which enables candidates to deliver their business plan and develop as a leader. They are then allocated a peer group ‘buddy’ from another practice section and a partner mentor from another part of the business.

After about two years (sometimes less), the management board studies a candidate’s business case for partnership. If successful, the partnership appointment panel will interview the candidate, who will need to prepare a presentation. “We try to structure the process so that only people who are ready go into it. We want partners who will thrive in the role,” Donath explains. Those who don’t get through the process may be invited to go through it again the following year.

Donath believes the firm’s various initiatives are an important factor in its low attrition rate (4.7% for principal associates and 1.2% for partners). She is also keen to point out that 18% of partners currently work part-time, 24% of whom are men. There is a minimum 80%-of-normal-working-time requirement, but there is also a range of working arrangements offered alongside this. She reports that this has made a great difference in encouraging women to stay in the firm.

Doyle Clayton, which has salaried partners, shareholder partners and a trust for employees that owns 65% of the firm, also has a clearly defined and well-publicised path to promotion. Lawyers are identified for partnership at least two years ahead of a panel selection and are given guidance on matters like how to raise their profile internally and externally, business development and the management and development of junior staff. In the final year, they prepare a business case for their promotion and are interviewed to discuss this. The promotion board meets three times a year to assess potential candidates. “People know if they’re on track or not, so there are no surprises,” says Wisener.

Outside help

External training can also be used and is especially helpful for firms that don’t have a human resources (HR) department. Armstrong Watson, alongside personal development specialists Size 10½ Boots, has developed a PathtoPartner training programme to help firms prepare lawyers for partnership. Training is focused on ensuring participants understand what is expected of partners and the key skills required for the role. A range of modules are centred around finance, business development and HR, and cover subjects from networking and cultivating a personal brand to the foundations of leadership and how to manage time and resources effectively.

Having such a broad array of attributes required for partnership, though advantageous, can be challenging for a firm. Assessing softer skills can be particularly difficult but doing so is essential, Poole insists. “A common mistake is not really knowing the candidate and understanding their character and capabilities and whether they’ll be prepared to be managed once they have gained partnership.” These considerations must be built into the appraisal and management process, and candidates need to be made aware of them.

Some firms assess non-financial or technical skills through a structured appraisal process: 360 appraisals may be used, under which questions about the candidate are asked of people who are at the same level as well as the people the partners report to. “This can provide huge insight, but it’s also valuable for the candidate’s development. Client feedback programmes can be helpful, too,” Poole states.

Alternative roles

Not all senior lawyers will become partners. Some may not wish to; others may adjust their career plans in light of changes in their personal circumstances. To recognise the skills and experience of this group, other posts are emerging in law firms. Connolly reports that a popular role now is that of legal director: “Often, this signals a person who ranks higher than a senior associate but is still below partnership, acting as a right-hand aid to the partners.” This, he says, may keep senior lawyers content a while longer if the road to partnership is a long one or if they don’t plan to become a partner.

Doyle Clayton has added the legal director role to its solicitor, associate, senior associate and partner roles and assigns it to lawyers who are one level below partnership. The role is intended to recognise an individual’s seniority in terms of years / depth of experience; usually, they have at least eight to nine years’ post-qualified experience and have developed their own specialism. The role allows those lawyers who aspire to become a partner to assume a higher level of responsibility and be seen as a senior member of the team before they are ready to step up, says Wisener. “We see legal directors as an essential part of our fee earner population, and they often act as a bridge between partners and more junior team members. We also appreciate that not all lawyers aspire to become a partner, so having a legal director role allows us to recognise a senior lawyer’s technical ability, subject expertise and ability to manage teams and matters effectively.”

Mills & Reeve has no set roles for senior lawyers apart from senior associate and principal associate. However, bespoke roles are often created for those looking to progress. One of the firm’s principal associates runs the legal innovation team; another is coaching junior lawyers on client service. These roles are reflected in an additional title given to the lawyer, where they have a specific responsibility. “We create these roles around the lawyer’s interests and strengths, and they also help motivate and recognise senior lawyers,” Donath notes.

Other roles are also being created by firms outside of legal practice (such as managing compliance) for lawyers who want to remain with a firm but enter a new field of work. And certainly, with legal practice becoming ever more complex, new roles – and the opportunities for promotion they present – are sure to emerge.