It is easy to focus on the financial aspects of the new pay and rewards scheme for associates that Allen & Overy (A&O) announced on 12 October. But we all know that any advantage a law firm gains simply by raising its pay rates will be short-lived. At the heart of the scheme is a shift in the way we are engaging with our associates. We recognise that it is the associates who hold the key to resolving the issues that have given rise to higher-than-desired attrition levels in our profession over recent years. And it is in this context that we have, for the past 12 months, been engaging with our associates to find viable, long-term solutions.
Put simply, the old days of the partnership laying down the terms and conditions of employment and then expecting associates to acquiesce are over. Firms are waking up to the realisation that the way they manage the new generation of associates has to change. Retaining key talent is the only way firms can be assured of competitive advantage.
The solution to improved associate retention includes better appraisals, clarity about performance expectations, improved career guidance and improved two-way communication. This can be summed up as the establishment of a coaching culture. This might seem straightforward, but we all know that this presents a significant challenge to any group of partners, whether they be at A&O or anywhere else.
When competing in the ‘war for talent’, we would be well advised to apply the same principles we do when managing our client relationships. We need to listen. We need to understand the issues and be ready, willing and able to respond. Ideally we should be anticipating our associates’ needs before they do — but one step at a time.
By actively involving associates in determining the solutions, you can be more assured of a successful outcome. A&O now has a clear understanding of the issues that need to be addressed, as well as an agreed plan for implementing the necessary changes.
And as our associates have become more involved in trying to find a solution, their appreciation of the complexity of the situation has increased. They too realise there is no quick fix that management has — for whatever reason — decided to ignore.
As the human resources director, I all too often hear behavioural skills described as ‘soft’ skills; the inference misleadingly being that they are somehow the easy skills. And yet getting the behaviours right in respect of managing our people is probably the hardest challenge we face. These are skills which need to be developed and honed over time and are not simply realised on promotion to partner. By looking to our associates to assist in the formulation and implementation of the solutions, they too will now have the opportunity to practise their managerial skills at an earlier stage.
Mentors, whether they be by informal arrangement or as a result of a mentoring programme, are undoubtedly a key part of the mix. However, the limitation with mentoring is that it assumes that the mentor’s experience is still relevant and applicable.
Of course, much of it still will be, but given the increasingly diverse make-up of our associate talent pool and the different expectations and aspirations of Generation Y, I favour a culture that places a greater emphasis on coaching, whereby the individual is supported and encouraged to find a solution that works for them. Establishing a coaching culture may well sound ‘pink and fluffy’ — I actually believe it is about as hard as it gets.
Other firms might be tempted to match us in respect of salaries. But let’s face it, we have all done that before. We believe that it is more difficult to replicate the underlying solutions that have been devised by the very same people for whom they are intended. Every firm is unique, with its own culture and set of values. Therefore, invariably, the solution will need to differ from one firm to the next. But the most effective process for arriving at it is arguably common to all.
Genevieve Tennant is HR director at Allen & Overy.
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