Part 2: With today’s associates more likely than ever to switch jobs – and willing to question the benefits of the partnership track – Craig Hoyland explains why transparency, opportunity and loyalty are the keys to retaining the next generation of leaders
It’s often said millennials are not as loyal as previous generations, but loyalty goes both ways, and when there are environmental or career advancement concerns then it’s understandable that they have no problem jumping from one organisation to another.
Upon making partner, or for those that are already in the partnership, what comes next? That ongoing need to continue to progress doesn’t just go away upon promotion and the biggest proportion of junior partners we represent are often motivated to move because they can’t see the scope for career advancement and, despite desiring equity, are often stuck in the fixed share/salaried partnership ranks.
This motivation for equity isn’t primarily driven by earnings alone, but by the recognition, ownership, and the ability to have a voice and make a difference. However, with PEP being an increased focussed for firms that feel pressure to pay their top partners competitively, as well as the rate pressures coming from clients, equity is being protected and the bar for entry is getting higher all the time.
It’s also apparent that many of those who have trained with their firm and remained loyal are finding their progression is slower than lateral hires who were able to negotiate a better deal.
Remuneration should be relative to a partner’s overall contribution to a firm and millennials are on board with that meritocratic concept, but resentment is often created when non-equity partners compare themselves to lateral hires who have not ported across the clients and revenue is expected of them. The same goes for current equity partners who are perceived, rightly or wrongly, as not working as hard or contributing as much.
Fundamentally, whenever we’re told by a lawyer that they’re underpaid, what they’re really saying is that they feel undervalued relative to the contribution they’re making, or in comparison to those around them who aren’t pulling their weight.
Despite what we read in the press about headline grabbing partner moves to elite US law firms paying huge sums, most individuals move for modest increases in pay or a comparable salary so long as they are genuinely offered an opportunity to be in a more favourable environment which enables them to progress, develop and reap the rewards in the medium to long term.
Overall most partners, while not actively looking for a move, are open to hearing about the right opportunity, ever mindful of the fact they need to re-evaluate whether they’re at the right firm, and if a move will better help them achieve personal goals.
There is of course no straightforward answer to addressing all the needs of an entire multi-generational workforce, but there’s a clear need for all firms to make a concerted effort to engage at every level (associate, senior associate, and partner) with what matters to individuals, to be transparent, develop effective mentoring/development programmes, and reward the right behaviours.
Many firms are working to create the right balance but there is no perfect system and suffice to say, less of today’s associates and those to come are as committed to the partnership track. This coupled with the fact that millennial partners are more receptive than ever to move means firms must constantly look after their own if their succession plans are to be realised.