GREG
JORDAN
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It’s
hard to believe that, until recently, the role of women
in corporate law was a topic of serious, even heated debate.
Fortunately the profession has matured to the point where
gender equity is understood to be an important principle,
as well as a valuable practice. There’s little argument
today that women being included at all levels is not only
the right thing to do, but it’s also one of the smartest
business decisions a law firm can make.
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In fact, hiring, training, retaining and promoting women are increasingly
essential elements in achieving profitability and longevity in
corporate law. In the past two decades in particular, the business
world has changed in ways that make women’s presence in and
their contributions to private firms less about gender diversity
as an HR initiative, and more about doing what is right, as well
as what makes sense to thrive in a very competitive business environment.
The economic forces driving gender diversity in this sector are
many, but they are easy to understand:
Clients have upped the ante by setting the authentic presence
of women lawyers firm wide as a condition of engagement
Today, corporations around the globe are setting higher standards
for gender diversity for their consultants, and are refusing to
do business with law firms that don’t meet them.
This new wave of gender diversity standards doesn’t just
look at how many women are in a firm, but it is sensitive as well
to where women fit into leadership roles, how many of them are
getting credit for the firm’s results, and how many are in
responsible client-relationship-focused leading roles.
Hewlett-Packard Co., Intel Corp., Sun Microsystems, Inc., Wells
Fargo, Lockheed Martin and other corporate powerhouses have recently
pledged to use gender as well as ethnic diversity standards when
hiring outside firms. If a firm doesn’t have enough women
lawyers on its roster, the corporations will be looking for a law
firm that does. Earlier this year, giant retailer Wal-Mart stopped
using the services of two firms whose gender and ethnic diversity
didn’t measure up, and increased the workload of 40 law firms
whose diversity was more closely aligned with these standards.
Moreover, claims of deficiencies in the legal talent pool or other
so-called pipeline issues no longer pass muster as an explanation
for why a firm’s lawyers are predominately male. Securing
talent from the same pools and pipelines, corporations have made
significant strides in recruiting and retaining females at in-house
law departments, many times recruiting these women from corporate
law firms and cultivating their careers within the corporate structure.
The long and short of it is that if law firms don’t meet
these corporate gender diversity demands, they no longer can count
on landing the business.
Attrition is expensive
Law firms typically invest thousands of dollars in the recruitment
and training of their associates. It’s expensive when they
leave before making the contributions for which they have been
carefully groomed.
Catalyst is a nonprofit research and advisory services organization
that works to build inclusive environments and expand opportunities
for women at work. It is a partner with Reed Smith in the firm’s
cutting-edge Women’s Career Advancement Initiative (WCAI),
and it estimates that it costs U.S. law firms between $250,000
and $500,000 for each departure of a fourth- or fifth-year associate.
Although the expenses from turnover are not gender-specific, and
although male associates do leave, turnover has typically been
significantly higher for female than for male associates nationwide.
 For this reason, it just makes good business sense to structure
specific, targeted programs that reduce female attrition and improve
rates of female promotion. Reed Smith has taken the approach of
providing its women attorneys with a comprehensive training program
which offers the information they need to examine or set career
goals, and the tools and skills they need to reach them. We believe
it makes sense for women to define success from their own perspective,
and for the firm to provide them with what they need to achieve
that success, however it is defined.
This is the way to attract and retain qualified professionals
in the firm and significantly reduce turnover.
Problem-solving and decision-making benefit from diverse gender
viewpoints
Law firms are called upon to solve real-world problems for their
clients, and for themselves as business entities. Problem-solving
and decision-making achieve greater success when taking into account
many and diverse points of view.
Women can help firms diversify their perspectives on any matter
where the full continuum of human experience is at issue. In fact,
ignoring what women know, think or feel about most matters can
be a costly mistake with long-reaching implications.
When plans are made, problems are solved, and decisions are reached
with women playing key roles, the likelihood is greater that the
outcome will be more broadly accepted and appropriate.
Women contribute to the workplace climate
Both men and women thrive in workplaces where there is diversity
of all kinds, including gender diversity. Law firms are more interesting
and lively, and have more enjoyable settings, when there is adequate
representation by both genders. Climate may be hard to define in
concrete terms, but our experience is that law offices are more
productive and have more grounded environments when female and
male lawyers work together to service its clients.
Do corporate law firms still have issues to resolve regarding
helping women achieve acceptable, positive balances between their
careers and the other aspects of their lives? Of course.
But across the industry, strategies are being developed and progress
is being made toward resolving these issues. It’s the right
thing to do and it’s smart business.
Gregory B. Jordan has been the firmwide Managing Partner
and Chairman of the Senior Management Team and the Executive
Committee of Reed Smith LLP. The American Lawyer named him
one of the country’s
top 45 lawyers under 45. Reach him at gjordan@reedsmith.com.
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