Human-resources experts in the legal sector agree at ESADE: "Security, stability and a good salary no longer keep lawyers loyal and happy"

The law-firm ecosystem is changing. It’s not happening in leaps and bounds, but new generations of attorneys are clearly demonstrating a different set of preferences as employees of law firms. Not everyone wants a partner-track career if it entails sacrifices that make professional practice incompatible with one’s personal life. These are some of the conclusions presented by the human-resources experts in the legal sector who took part in a panel discussion at ESADE’s Madrid campus, organised by ESADE Law School in collaboration with IurisTalent. The consensus among the panellists was that what used to work is no longer an effective way for law firms to attract and retain talent.

Juan Manuel Chicote, Director of Human Resources at Gómez-Acebo & Pombo, commented that, by 2030, 75% of the workforce will be millennials, “a generation that is difficult to retain because they want to change companies every few years”. According to Mr. Chicote, “The new batches of lawyers want flexible hours and to not always work in the same place. We have to come to terms with the fact that security, stability and a good salary at a law firm no longer equates to loyal, happy employees.”

José Luis Risco, Director of Human Resources at EY Spain, also emphasised flexibility: “When the new generations answer our annual workplace climate surveys, they ask us not only for compensation, but also for much more, and the main message is real flexibility: they want to work when and where they want.” Mr. Risco acknowledged that it is difficult to introduce flexibility measures in the microclimate of the legal sector, but his conclusion was emphatic: “Either we adapt or nobody will want to work for us.” At EY’s new office space in Madrid’s Torre Titania (on the site of the former Windsor building), all employees – including partners – work in an open-plan workspace. “Open space is now our second pillar,” commented Mr. Risco. “But we can’t forget the tools, because even if you have this space and professionals who are prepared for this new model, it’s no good if you don’t have the tools.”

Maite Jócano, Director of Human Resources at Ashurst, noted that it is increasingly important for law firms to use a compensation equation that includes fixed and variable wages, social benefits, and in particular an emotional salary, which does not involve economic matters. Of the various elements of the compensation mix, she argued, “Emotional salary has the most advantages: it has the lowest cost and the most benefits. It also reduces turnover, fosters a sense of pride and belonging, and makes employees more committed.” Ms. Jócano posed two questions to the audience: Should the legal sector embrace lower fixed wages and more aggressive variable wages? And should the sector do away with raises that are given almost automatically, in a one-size-fits-all manner?

Alonso Cienfuegos, Director of Human Resources at Allen & Overy, stressed the importance of training: “We must try to offer a custom training programme that takes all necessary factors into account, including skills.” Mr. Cienfuegos observed: “At law firms, people are the key element. Leaders must be able to develop teams, motivate, inspire and let others do their work.”

The panellists also discussed the concept of employer branding. Mr. Chicote commented: “You have to be attractive as a brand. To do that, it’s important to create a unique brand that is based on values and which transmits a true picture of the firm. We have to become an object of desire for our future lawyers.”

The panel discussion was introduced by Enrique Verdeguer, Director of ESADE Madrid, and Javier Moreno, Managing Partner at the recruiting firm IurisTalent. Eugenia Navarro, Lecturer of Strategy and Legal Marketing at ESADE Law School, moderated the discussion.