Corporate Counsel: In-house legal heads urged to be more creative in battle for talent
Leading corporate counsel are well aware of the career obstacles facing ambitious young lawyers, but, as Ed Thornton reports, concerted initiatives to encourage rising stars to remain at their company in the long term are few and far between
September 27, 2006 at 08:03 PM
4 minute read
Most senior corporate counsel are resigned to the fact that it is difficult for promising young lawyers to rise through the departmental ranks – but few are making any effort to address the problem.
Fifty-nine percent of the respondents to this month's The Verdict survey acknowledge that it is difficult for talented young lawyers in their department to advance their careers.
And they are similarly sceptical about the prospects of in-house lawyers moving into non-legal roles in their company, with 77% of respondents saying it is either quite difficult (50%) or 'very difficult' (27%) to move into a non-legal role.
But despite acknowledging the difficulties facing ambitious young lawyers, only 19% of the respondents said they had taken action to address the situation, with the rest – 81% – conceding that they had neither launched a recent initiative nor planned to do so.
The survey was carried out in the wake of the news this month that drinks giant InBev is drawing up plans to establish a training programme for its most talented European-based in-house lawyers. The programme will see 15 of the company's brightest lawyers take part in a three-year programme covering specialist legal knowledge, management skills and leadership.
Diageo general counsel Tim Proctor said legal heads needed to think creatively about how to provide new opportunities for members of their team. "Legal functions are often relatively flat, so sometimes keeping people challenged means lateral moves," he said. "We have taken two talented people in London and the US and had them switch jobs for a time."
Jane Owen, legal and regulatory director at insurance and risk management company Aon, added: "There are ways you can develop your talent in-house that are just as exciting, if not more so, as in private practice. In-house, you can stay doing legal work or you can go into management."
Examples of initiatives cited by respondents included establishing a career development review process for high-achieving lawyers, introducing new areas of legal expertise and rotating lawyers around the department.
However, one survey respondent was distinctly more laissez-faire about the need to keep hold of staff.
He said: "Retaining lawyers is not a focus area for me. I try to get the best people for the job. If they get offers from outside or can move in-house, that is a sign of their quality. And if somebody has his mind on moving to other places, it is better to let them go."
Despite acknowledging the obstacles in the way of ambitious lawyers in their departments, respondents to the survey expressed confidence about morale within their own teams.
Fifty-five percent of respondents said morale levels in their team was 'high' and a further 15% said it was 'very high' and while just over a quarter (26%) believed the level of morale was 'adequate', only 4% described it as 'low'.
The survey also indicates that attrition rates within in-house departments are low.
Nearly two-thirds (63%) of respondents said the approximate attrition rate in their team was 0%-9% while 22% said it was 10%-19%. Just 15% said the approximate rate of attrition was higher than this.
As for the frequency of appraisals, more than half (53%) of the respondents said that members of their team were appraised at least every six months while 35% said this took place at least once a year.
Assuming that the reports of high morale are not just wishful thinking, the survey suggests that at least some in-house lawyers are happy in an environment where the prospects of promotion are distant.
Canary Wharf's group legal counsel, Martin Potter, said many lawyers were attracted to the stability provided by in-house departments.
"In-house lawyers tend to stick around in places where they are known and know the people and get comfortable. There is only one step up and that is to head the department, whereas in private practice you can go from assistant to associate [to partner]."
Proctor added: "The key is really to provide an environment and a culture where people develop a sense of loyalty and feel they want to be part of it for the long term."
Is there a credible in-house carrer path? Your comments online at: legalweek.com/ talkback
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