The Great Resignation: Why are Legal Professionals quitting?

The fact that COVID-19 has affected all industries is old news. What has come to light is that many lawyers and administrative staff are contributing to “The Great Resignation” and leaving their current law firm in shockingly high numbers.

This challenge is exacerbated for intellectual property practice groups since that field remains in high demand, and thus there are more competing opportunities for job seekers. At the same time, IP requires a unique skill set that does not easily transfer from other practices of law, so the volume of job openings often outpaces the number of qualified candidates. At times, finding experienced IP staff and lawyers can seem akin to searching for a unicorn.

A search on Indeed.com in October 2022 for IP administrative roles in the US such as paralegal and docketer brought up over 300 job openings. Firms report extensive challenges in hiring IP administrative staff, ranging from increasing salaries to the inability to find qualified candidates to interview. Some firms have even reported extending job offers and the candidates simply not showing up for their first day of work, having secured a better offer during the interview process.

Why is the Great Resignation happening?

The COVID-19 pandemic forced the world to pause and introduced a break from the hectic pace that characterises any company, especially law firms. Many people took this time to reflect, rethink, and reimagine their options. Combined with relief from work-induced stress, a relook at unfulfilling jobs and a renewed focus on personal and family life led to the Great Resignation.

Legal professionals in the US who have left their firms give an array of reasons for doing so, ranging from needing a new challenge, to management lacking a clear vision, to bad bosses, to wanting a better work-life balance or increased earning potential. Younger lawyers and staff in particular want to give back more to their community and be active participants in a firm where CSR and pro bono are not empty terms. They want an inclusive work culture where their voice can be heard and heeded.

Impact of the Great Resignation

The impact of experienced legal professionals quitting is felt at multiple levels. If a senior partner quits, there is a direct client and revenue impact on the incumbent firm, they typically take with them the clients they have been managing. When a junior attorney or paralegal quits, partners must spend more time and effort on internal training and bringing new hires up to speed, time that could have been used for higher billable work and expanding the client base.

When junior IP lawyers or staff leave, it can have a detrimental snowball effect on the morale of remaining employees. The volume of work does not decrease, but with fewer colleagues to manage the same workload, more falls on the shoulders of the remaining team. This increases frustration and leads to even more departures, a vicious cycle. Several firms also report challenges related to pay scales: when tenured employees see new hires earning 20-30% more, dissatisfaction grows.

Retention and alternative staffing

According to a report from McKinsey, the key to keeping employees from exiting is a good retention policy. Recognition and showing appreciation are significant. As McKinsey puts it: “To retain employees, organizations need to evolve their approach to building community, cohesion, and a sense of belonging at work.”

Firms should consider alternative staffing models, such as outsourcing routine IP administrative work to a third party, to complement and support their existing in-house team. Such an approach allows firms to have their valued employees focus on higher-value, billable, and client-facing work. Additionally, firms can avoid the resentment caused by new hires earning more than established counterparts by having a third party fulfil open roles.

Not all IP outsourcing vendors are created equally. Firms should thoroughly understand the credentials of the vendor’s leadership team and staff. Are they IP experts who understand the nuances of IP law? Are they focused on IP, or is their strategy spread among various practice groups? What specific quality-control measures reduce the risk of errors? Does the vendor provide dedicated personnel, or a shared pool that could be working for a competitive firm in the afternoon? How much tenure does their team have?

If nothing else, part with a smile

Accept that times are changing. Priorities are changing. Needs and wants are changing. People are introspecting and evolving.

Departures may still happen despite the best efforts. Firms should look back at the tenure with gratitude and celebrate the achievements. Do not end things on a bitter note. A good leader encourages their staff even when they want to strike out on their own or look at greener pastures, when the departure happens on a positive note, lawyers and staff often return to the same firm. Keep the door unlocked for a warm welcome.