7 Strategies for Retaining Top-Tier Talent in the Nomad Economy
/Faced with record turnover rates, both law firms and legal departments must learn to adapt to the Millennial mindset
It’s a sobering statistic for employers across every industry: a “nomad economy” is emerging in which employees ages 25 to 34 only stay at their jobs for an average of 2.8 years. Those numbers climb only slightly higher for workers ages 35 to 44, with an average tenure of 4.9 years.
In the distant past, a dream career track meant climbing the ladder at the same company, retiring with a gold watch and a pension at age 65. More recently, switching jobs became more common—though not to the degree of current tenures. In the legal industry, some lawyers half-jokingly reflect on their first years of practicing in a law firm as “the unhappiest job in the world.” Generations of lawyers, however, simply accepted that they had to patiently pay their dues, performing tedious grunt work over gruelingly long hours in hope of proving their worth for a partnership or top corporate position.
Job-hopping was looked down upon, not least from the employer’s side of the equation. Switching careers was an even bigger faux paus—a sign that you were either flighty or such a disaster that no one would hire you to do the same job again.
But Millennials tend to refuse this old way of thinking. Many change jobs faster than they change cars, quick to chase a better lifestyle or broaden their skills by seeking out new challenges.
Historically low unemployment rates have employers struggling to find skilled professionals to fill roles, and the average Millennial takes full advantage: jumping jobs four times during their first decade out of college. They don’t just leave jobs when they’re miserably unhappy, they leave when they believe they aren’t happy enough.
The high cost of turnover
Job-hopping is no longer a sign of instability, it’s an accepted part of a career path. Nearly 65 percent of today’s workers believe job-hopping boosts their careers, up from only 22 percent in 2014. Not surprisingly, that number climbs even higher among Millennials, with 75 percent in favor of job-hopping. In fact, the pendulum has swung so far that some hiring managers penalize candidates for staying in a job too long, questioning their breadth of skills and experience.
This new “nomad economy” has the law profession scrambling to adjust, as turnover reaches record levels and costs the top 400 law firms an estimated $9.1 billion per year. In a profession where a decade-plus tenure was once the norm, high turnover rates are hurting morale, tainting firm reputations, wasting hundreds of hours of training, especially disrupting a firm’s culture and practice groups. Relationships can also suffer, as clients often become unhappy when a trusted lawyer leaves.
Millennials already comprise the largest segment of the workforce, and by 2030 that number is projected to reach 75 percent. Retaining Millennial talent is one of the biggest challenges law firms and legal departments face. Let’s take a look at seven ways to attract and keep the best and brightest attorneys in today’s nomad economy:
7 ways to keep your Millennial employees from leaving
Emphasize the noble practice of law. Millennials tend to covet careers that appeal to their sense of social responsibility—and law is a profession that has long symbolized making a difference in the world. Unlike previous generations who were content with finding ways to give back to their communities outside of work, many younger individuals want their work to be the vehicle for making the world a better place.
For instance, after years of declining law school enrollment, there's been a recent surge. A third of these new pre-law students say they feel compelled to pursue a legal career to fight social policies they view as troubling, like the country’s recent crackdown on immigration.
Law firms and companies must still offer competitive salaries and benefits to get young lawyers on board. But focusing on any positive impact of the work you’re doing can cement this idealistic generation’s commitment. Even better, let them exchange some billable hours for pro bono work to show your sense of social responsibility is genuine.
Embrace work/life balance. It’s no secret that Millennials evaluate a prospective employer based on the “work/life balance” they offer. But many employers don’t truly grasp what that means. These employees don’t necessarily want to work less—they simply want to work more flexibly than previous generations. They refuse to rigidly compartmentalize their time between work, family, friends, charity, and play; they believe it should all blend together—at least from a scheduling perspective—with work being an enhancing and enriching aspect of their lives.
Nearly 60 percent of young job seekers look for flexible work schedules from prospective employers, and 70 percent said they’re more likely to accept a job if they’re offered the option of working from home at least one day a week. Law firms and companies that give quality hires the opportunity to achieve these goals will be rewarded with higher levels of loyalty and productivity.
Take mentorship seriously. Millennials tend to place a high value on finding the same mentorship during their professional careers that they enjoyed in earlier settings. Regular performance feedback and open communication can play a critical part in job satisfaction.
But read this carefully: assign a lousy mentor and your efforts are likely to have the opposite effect. Not every senior attorney is interested in serving as a mentor, for example, nor are they right for the job. Be sure to choose mentors who will actually put in the time and energy to nurture the next generation of attorneys.
Prioritize employee development. Dedicating a group of partners to career development can go a long way toward convincing talented employees to stay loyal to your firm or company. Priorities should include reducing turnover, increasing engagement, and helping talented employees advance their careers. Be sure that high-potential employees understand the variety of roles available at your organization; it may convince some of them that they don't need to leave to meet their goals.
Build a sense of community within your firm. Good relationships with colleagues are essential to job satisfaction. If Millennials feel lonely and disconnected at work, it won’t be long before their motivation wanes along with their commitment to your firm.
Improving your onboarding process for new lawyers can be a good way to encourage strong relationships to form. Connect new lawyers with peers, partners, and staff and provide social opportunities so they can spend time getting to know them. “Lounge-braries” are also an increasingly popular law firm trend, transforming the office break room into a collaborative work space.
Let them make a difference. Millennials enter the workplace with an enthusiasm to contribute and make a real difference early in their careers. Instead of squashing their eagerness beneath mountains of soul-deadening grunt work, harness their excitement with opportunities that make them feel like a real member of your team. Give them chances to meet clients personally and participate in planning and strategy meetings. Let them witness how senior lawyers interact with clients and, if applicable, the court.
Help broaden their skills. Ongoing training opportunities are a high priority for Millennials; they are willing to watch webinars, take classes, and work extra hours to sharpen their skills. A major reason younger workers look for greener pastures every few years is because they start to feel they have learned everything they can from a job. Providing robust training and development programs where employees can refresh and expand their skills into new areas that interest them proves that your organization still has plenty of value to offer.
Traditional motivators may fall flat with Millennials
The more flexible and talented employees are, the easier it is for them to participate in the nomad economy. Traditional motivators like billable-hours bonuses and the promise of partnership or general counsel pay years down the road may not work on this this idealistic generation; one that’s eager to hit the ground running. If firms and corporations want to attract and retain the best and brightest of the Millennial set, they must learn what resonates most and adapt.
Carrington Legal Search is devoted to finding the ideal candidates for our clients’ recruitment needs. We have particular expertise in the Financial Services (banking, insurance, investment management, etc.) and Technology verticals. To make our nationwide network work for you, get in touch at 512-627-7467 or email carrie@carringtonlegal.com.