Diversifying your team: The changing practices in today's legal profession.

The legal field has struggled with the issue of diversity for many years. Currently, law is one of the least diverse professions in America and its lack of diversity is concerning to both practitioners and clients. To meet the demands of the marketplace, law firms must work to develop successful diversity hiring practices.

Demographic trends in the United States show a change in the ethnic make-up of our population. In the year 2020, our workforce will consist of many older Caucasians and younger minorities. We live and work in a multi-ethnic environment and as such the workforce is more diverse than ever before. According to the U.S. Census Bureau, a shift in the American population is occurring that will make the country “majority-minority.”

Corporate America has responded to this shifting dynamic by creating diversity hiring programs to ensure that its employee base matches its customer base. Because minority groups in the workforce have faced challenges at various times, programs that work to grow all types of employees into successful members of an organization are increasingly important. Documents such as “Diversity in the Workplace” drafted by Bell South’s general counsel in the late ’90s and “A Call to Action” drafted by Sara Lee’s general counsel in 2004, state the desire for law firms to uphold similar diversity practices, and demonstrate the pressure being placed on firms by the marketplace to develop successful diversity hiring programs. Diversity initiatives are not only morally important, but ultimately build a stronger workplace by bringing together employees with different backgrounds, experiences and ideas. This special report by Ajilon Legal examines the demographic trends in this country today and how they are impacting the legal profession, while offering specific examples of how the marketplace is demanding change. Additionally, it includes insight into how your firm can implement a successful diversity hiring practice as well as a case study illustrating what a leading international law firm has done to succeed in its diversity hiring.

We hope you walk away with a better understanding of the diversity challenges facing law firms today and how to improve your firms hiring practices. Mostly, we hope the insights provided here help to establish or renew your firm’s commitment to diversity hiring and creating the strongest team possible.

The Great American Melting Pot?

America has always been ethnically diverse. But today, a shift in the population is occurring. In fact, by 2050 the United States population will be “majority-minority,” with Hispanics exceeding all other ethnic groups combined. As the American population diversifies, so too does the landscape of the workforce. According to the United States Census Bureau, the workforce in 2005 was approximately 73 percent Caucasian, 12 percent African-American, 1 1 percent Hispanic and four percent Asian-American, making minorities 27 percent of the working population. However, by the year 2020, minorities will comprise more than 36 percent of the United States workforce.

These statistics illustrate that the make-up of the general working population. Yet, the demographics of the legal profession are vastly different. The current demographic breakdown of the legal profession is more than 90 percent Caucasian. In fact, according to the Law School Admissions Council (LSAC), no minority group accounts for more than 4% of lawyers in the United States. In 1998 African-Americans and Hispanics combined represented 7% of lawyers as opposed to 14.3% of accountants and 9.7% of physicians.

Declining public confidence in the field of law combined with pressure from clients to have a varied employee base within firms is forcing the legal profession to take a hard look at its recruiting and hiring processes. Law firms must develop forward-looking diversity hiring programs to meet the demands of the marketplace and more accurately represent the American population. In addition, legal staffing firms are also taking note of these trends and are shifting their recruiting and hiring strategies for clients to better meet these demands. Still, to build a successful diversity hiring practice, we must understand the depth of the problem and the forces pushing for a solution.

A Legal Team that Represents Me: Understanding the Diversity Problem

You might assume that as the American population continues to become more ethnically diverse and a growing number of minorities enter a wide range of professional occupations, the legal profession will evolve as well. Actually, the percentage of minority hiring among the nation’s top law firms has declined slightly since 2000, from 9.73% to 9.64%, according to The National Law Journal’s annual survey of the nation’s 250 largest law firms.

Part of the reason that the legal workforce is not diversifying is because the pool of minority applicants is smaller than with many other professions. According to the American Bar Association (ABA), the rate of minority applicants to law school is declining. In fact, applications were down 1% at America’s top 20 law schools in 2005. And minorities represented only 20 percent of total applicants to law school last year. Additionally, even after successfully completing law school, minorities are joining law firms at a much lesser rate than their fellow graduates.

The lack of interest in law as a profession for many minority groups is symptomatic of a larger problem, according to recent studies by the ABA. It shows an increasing lack of trust in the legal profession due, in part, to the fact that there are so few minorities currently involved in the legal field. People simply do not believe a group that does not reflect their lifestyle can effectively represent them.

Further, minorities that do succeed in entering the legal profession are less likely to enter private practice and much more likely to take government or public interest jobs — resulting in more competition for the limited pool of minority applicants.

The American business community also has taken note of the legal profession’s lack of diversity. With increased competition for the attention of the American consumer, company’s cannot afford to ignore issues that are important to their customer base. In response to their increasingly diverse customers, corporations are instituting diversity hiring practices of their own. And internal legal teams are extending their company’s diversity hiring practices to outside legal counsel, asking all legal partners to meet certain diversity criteria. Further, many of these companies are working closely with the ABA to try and increase the number of minority applicants to law school through scholarships and sponsorships.

In the late 1990s, Bell South’s general counsel issued “Diversity in the Workplace: A Statement of Principle,” better known as “The Morgan Letter.”

Throughout the United States and around the world, we value highly the perspectives and varied experiences which are found only in a diverse workplace. Our companies recognize that diversity makes for a broader, richer environment, which produces more creative thinking and solutions. Thus, we believe that promoting diversity is essential to the success of our respective businesses. It is also the right thing to do.

— DIVERSITY IN THE WORKPLACE

More recently, “Call to Action: Diversity in the Legal Profession” was written by Sara Lee’s general counsel in hopes of re-invigorating diversity hiring practices.

Both documents state that companies may choose to terminate relationships with firms whose diversity continues to lag. The fact that nearly 500 corporations signed these letters highlights the significance that corporate America places on diversity in the legal field.

...We pledge that we will make decisions regarding which law firms represent our companies based in a significant part on diversity performance of firms.

— A CALL TO ACTION

A clear sign of change came in 2005 when Wal-Mart, with billings of approximately $200 million annually, dismissed one of its outside firms for failure to meet diversity quotas. Wal-Mart was the first company to take action and show firms that not following diversity mandates could have financial consequences, raising the stakes considerably for firms to implement successful diversity hiring practices. Companies have realized that as they globalize and face increased competition for the attention of the consumer, they cannot afford to have staffs that do not understand the needs of their customer base or workforce. Wal-Mart recognized that outside legal counsel must reflect the same values as the organization or it could not serve as an effective partner.

Developing a Successful Diversity Hiring Practice.

Ajilon Legal routinely offers our clients practical advice on how to implement the diversity hiring practices necessary to thrive in today’s marketplace. First, it is essential to improve relations with minority groups in order for your firm to have employees with a wider range of experiences and ideas. In a marketplace that places increasing importance on intellectual capital, it is crucial to reach out to the minority population and expand your talent pool.

The following four steps offer a roadmap for overcoming any obstacles you may face when implementing a diversity hiring practice at your firm:

1. Obtain Commitment from the Top.

The most important step for implementing diversity in the workplace is to obtain a sincere commitment from senior management. Your firm’s diversity goals should be clearly stated as part of the company’s management mandate.

A diverse workforce should be laid out as part of your firm’s mission. A nicely worded mission statement, however, cannot orchestrate true change. An action plan must be created and supported by the senior partners in order for change to occur. A few suggestions for the action plan might include:

• Make hiring partners financially accountable for meeting diversity goals
• Invest in the minority community from which the firm draws — sponsor events and support organizations that reach that community
• Create a diversity committee that has the authority to ensure that the firm complies with its mandate
• Offer training to existing employees to help promote diversity

2. Develop a Recruiting Strategy for Diversity.

Human resource professionals must work with senior management to develop a roadmap for successful diversity recruiting programs. Competition for qualified candidates is intense — in order to succeed in your diversity hiring efforts, you must aggressively pursue these top professionals. Involving a senior partner in recruiting efforts proves that your firm is dedicated enough to its diversity hiring program and is willing to ensure its success. Keep in mind that when a senior partner is directly involved, human resource professionals should make sure that the program and management’s goals are consistent. Additionally, a number of leading law firms have established a Chief Diversity Officer role to help further drive minority recruiting efforts and to ensure all perspectives are understood on important firm and client issues.

Developing relationships with minority associations at the professional and academic levels makes your firm visible to its applicant pool, with both entry-level and experienced candidates. By working with recruiting agencies that specialize in placing minority candidates, your firm will increase the pool of applicants and confirm its dedication to the process. Finally, creating materials that show a consistent record of hiring and retaining minority candidates helps to recruit new talent.

3. Retaining Your Top Diversity Talent.

The ability to recruit minority candidates only brings your firm halfway to success. Retention is the next, and in many ways, a more important step. You must be able to not only attract, but also keep ethnically diverse talent in order to really achieve your diversification goals. Therefore, retention should be part of the initial mandate of any diversity program your firm establishes.

• Create a mentoring program. Mentoring programs have been proven to help with the retention of new employees. Formally pairing a minority attorney with a firm leader allows the candidate to see the firm’s commitment to his or her success. Additionally, these relationships give management insight into the issues that minority hires face within the firm.
• Provide room for growth. In-house training and continuing education opportunities will attract associates interested in growing their career. By offering associates the chance to grow beyond their current skill level, your firm can discover rich resources within its own employee pool.
• Form relationships with affinity groups such as minority bar associations and encourage employee participation in these groups. Encouraging employees to participate helps them to feel a sense of belonging and offers additional mentoring opportunities outside of the firm. Further, these groups decrease feelings of isolation by allowing employees to connect with others with similar issues and concerns.
• Support employees’ participation in the non-profit activities that the firm sponsors as part of its minority recruiting program. This provides associates the opportunity to give back and develop stronger ties within the community and helps your firm increase its profile.
• » Finally, do not underestimate the importance of flexibility when working to retain a diverse workforce. Part-time or flexible work schedules, on-site day care and a variety of other non-financial benefits will help attract associates of varied backgrounds and lifestyles.

4. Track Your Success.

Tracking the progress your firm makes toward achieving its diversity goals not only grabs the attention of clients, but also helps to retain minority associates and recruit additional candidates. Human resource representatives should work with internal resources and senior management to regularly review and keep detailed statistical data on all programs. Review programs on a regular basis and celebrate successful programs; while discontinuing or re-structuring programs that do not achieve results. Programs that have achieved superior results or are especially innovative should be highlighted both internally and externally. Your firm may even wish to create marketing materials around philanthropic activities you sponsor and use internal communications to thank those associates that gave time to the activity.

A Case Study.

Jones Day, one of the world’s largest international law firms with more than 2,200 attorneys in 30 offices around the world, has been successful in developing a diversity hiring practice. The firm has stated its commitment to recruiting, retaining, and promoting the best attorneys and law students from all backgrounds. To this end, Jones Day created a Diversity Task Force, which supports the U.S. office and practice group leaders in four primary areas: entry level recruitment; lateral recruitment; development and retention of minority and female attorneys; and diversity awareness. The firm participates in a wide variety of activities relating to increasing diversity within the legal profession to support its mission, including the recruiting efforts specific to minority candidates, in-house training and community involvement. A few of the activities undertaken by Jones Day include:

» recruiting.

Jones Day has developed an extensive strategy for attracting minority candidates. Their involvement in numerous outreach activities with target affinity groups includes:

• Participating in the Columbus Bar Association Minority Clerkship Program and the Morehouse/Spelman Intern Program
• Sponsoring and participating in minority recruiting events and conferences at numerous law schools, including the Harvard Black Law Students Association (BLSA) Annual Spring Conference and Job Fair, the Stanford BLSA Fall Conference, and BLSA Conferences at Case Western Reserve and the University of Southern California
• Participating each year in the National Asian Pacific American Conference on Law and Public Policy, conducted by the Conference of the Asian Pacific American Law Students Association, at Harvard Law School.

» attorney development.

Jones Day understands that a strong recruiting program is meaningless unless it is coupled with an equally powerful retention and development program. Therefore, the firm has developed programs to help retain and grow its attorneys, including:

• Conducting extensive in-house training programs for junior and mid-level attorneys
• Being one of the first large firms in the country to develop a part-time policy and firm sponsorship of emergency day care in a number of offices
• Offering domestic partner benefits
• Encouraging and supporting attorneys in local bar association, community organization, and pro bono activities

» community involvement.

Jones Day participates in and sponsors a number of national conferences and programs dedicated to developing and implementing methods of increasing diversity within the legal profession, including:

• The ABA Commission on Racial and Ethnic Diversity in the Profession
• The Minority Corporate Counsel Association’s annual Creating Pathways to Diversity Conference
• The National Asian Pacific Bar Association’s Annual Conference
• The American Bar Association’s National Conference for Minority Lawyers
• The American Bar Association Conference of Minority Partners in Majority Corporate Law Firms
  

» results.

The results prove the success of the initiatives. Jones Day’s diversity outreach efforts and initiatives are working. Women now account for 50% or more of the associates in a number of their U.S. offices. As of 2004, minorities made up 10 percent of Jones Day’s U.S. attorneys.

Two of the 2 1 U.S. associates/counsel elevated to partner this past year were African American. Of the 144 new associates who started work in U.S. offices in the fall of 2004, 7 1 were women and 23 were minority. Seven women and three minorities sit on the Firm’s Advisory Committee, and a Hispanic female chairs the Firm’s Recruiting Committee. This year, Jones Day celebrated a major milestone — reaching 100 female partners. The Firm’s Administrative Partner is female, as are the heads of the Washington, D.C., Pittsburgh, and Hong Kong offices.

Those firms who commit to diversifying their workforce, dedicate resources to this goal, and foster a sense of belonging within their employee base will ultimately build a better team. By working to develop an increasingly diverse legal workforce, firms not only meet the demands of the marketplace, but also ensure a larger, stronger talent pool. In a profession where the strength of your talent is often your most important differentiator, creating a solid strategy for employee recruiting and retention is essential to overall business success.