Workplace diversity, equity, and inclusion, commonly abbreviated as DEI, encompass the establishment of policies and procedures that actively promote the representation and involvement of individuals from diverse backgrounds, including varying genders, races, ethnicities, religions, ages, sexual orientations, disabilities, and social classes.

Creating an inclusive workplace culture has been high on the agenda of many businesses in the last few years and the benefits around this are much publicised – from aiding employee recruitment, engagement, and retention, to innovation, strategic growth, and performance of the business more widely.

In the context of law firms, embracing DEI principles is not merely a moral imperative, but arguably a strategic necessity. The legal profession, like any other, benefits immensely from a diverse array of perspectives, experiences, and backgrounds. In a multicultural and pluralistic society such as the UK, ensuring representation and inclusion in law firms is paramount to building trust, credibility, and legitimacy within the broader community.

Law firms that prioritise DEI initiatives are better positioned to address the diverse needs of their clients, who themselves come from various walks of life. A diverse legal team enhances the capacity to understand and navigate the intricacies of complex legal issues, thereby promoting a more nuanced and comprehensive approach to problem-solving. Moreover, fostering an inclusive environment within law firms is essential for attracting and retaining top talent from all backgrounds, ensuring that the legal profession reflects the rich tapestry of the society it serves.

The benefits are clear – and widely acknowledged across the legal landscape, but does that necessarily translate into actionable and implementable practices?

Arguably not…or at least, not at the moment.

A National Scandal?

Back in September 2023, Matthew Hill, the Chief Executive of the Legal Services Board (LSB), addressed the issue of diversity at the Law Society’s Junior Solicitors Network summit, asserting that the lack of diversity at partnership level in major law firms should be a matter of ‘national scandal’.

While discussing the Solicitors Qualifying Exam (SQE), Hill emphasised that the new centralised assessments were not intended to instantly resolve all diversity issues. Instead, he highlighted the broader concerns of attracting individuals to the legal profession and making the legal career path universally appealing. Hill identified existing working practices within law firms, such as informal strategy planning in exclusive settings, as hidden barriers for individuals from diverse backgrounds. He called for increased transparency in progression and promotions, urging a re-evaluation of how seniority is perceived in the legal profession, emphasising the need for a more sophisticated model that captures the diverse richness of professional experience.

A recent article in the Law Gazette similarly highlighted that whilst the intake of trainees from a mix of racial, gender and socio-economic backgrounds has improved in recent years – the legal profession still faces huge challenges in retaining its diverse cohort – especially when it came to a seat ‘at the top table’ and making DEI a strategic management decision.

How Diverse Is the Legal Profession? Current State of Play

According to the latest data published by the Solicitors Regulation Authority (SRA) in the United Kingdom at least, there has been a slow but steady increase in diversity among all lawyers since the previous survey in 2021, although there is still some way to go with certain diversity groups and categories.

Ethnic lawyers constitute only 18% of the law firm lawyer population, and the disabled make up just 5%, in contrast to the 14% representation in the overall UK workforce. While there have been some advancements in the US, similar patterns have emerged; the National Association for Law Placement (NALP) citing that although 28% of law firm associates belong to minority groups, only 11.4% ascend to partner positions.

While the lack of diversity and equal opportunities remains a significant topic of discussion in the legal industry today, it is not a new challenge. In fact, calls for enhanced diversity date back to 2008. As awareness among legal professionals regarding the significance of working for firms that advocate diversity increases, coupled with a growing client demand for Diversity, Equity, and Inclusion (DEI), the question looms: How will law firms choose to address this issue?

DEI – A Recap

Diversity, equity, and inclusion (DEI) is a term used to describe policies and programmes that promote the representation and participation of different groups of individuals, including people of different ages, races and ethnicities, abilities and disabilities, genders, religions, cultures, and sexual orientation.

Its significance in achieving long-term corporate success cannot be understated, as it forms an integral part of the firm culture that employees will be reliant on to achieve optimal performance. A good way to understand its role in business is to consider the following analogy depicted by former Chief Diversity Officer at the University of Michigan, Robert Sellers:

• Diversity is where everyone is invited to the party
• Inclusion means that everyone gets to contribute to the playlist
• Equity means that everyone has the opportunity to dance

This metaphor is an apt way of describing how DEI policies are to work in practice. The CIPD confirms that while U.K. legislation sets minimum standards overlaying disability, race, religion, sex, and sexual orientation, among others – an effective DEI strategy goes further than being legally compliant. DEI implementation is meant to unite the best interests of both employee and employer by supporting and promoting the wellbeing and engagement of the former, which in turn adds increased value to the latter.

DEI and Business Growth

The business case for diversity has been well-documented since the McKinsey reports produced on the topic in 2014. Their latest published report still confirms that the case remains strong, with a few key findings indicating that the connection between diversity on executive teams and financial outperformance has only strengthened over time. Some of them include the following:

• Companies with more than 30 per cent women executives were more likely to outperform companies where this percentage ranged from 10 to 30, and in turn, these companies were more likely to outperform those with even fewer women executives or none at all
• A substantial differential likelihood of outperformance—48 percent—separates the most from the least gender-diverse companies

All encouraging signs that show what is possible with enough support and focus.

However, while there is a profound awareness of the need to step up efforts in DEI, this growing imperative is not reflected in practice. The NALP Foundation for Law Career Research and Education revealed in 2021 that the overall attrition rate for associates was as high as 34% among legal professionals of colour. This was further corroborated by a research paper released by Thomson Reuters institute, which showed that women, minorities and LGBTQ+ associates represented the biggest flight risk for firms. Considering these are also groups that were found to struggle the most during the pandemic, this signifies a serious lack of impetus and action on the part of employers to foster a diverse and inclusive workforce.

While it is indeed logical to assume that law firms do want to attract diverse talent, based on the data previously mentioned and the skills shortage problem many are contending with, it does not take away from the fact that barriers to progress still remain among minority groups and that the homogeneous and straight-and-narrow way of recruiting is very much still a prominent amongst legal employers, which is in turn affecting their ability to attract and acquire the talent they need.

Demand For DEI Initiatives Driven By Workforce

Interestingly our changing workforce increasingly wants to join teams that embrace diversity. A post last year on the LinkedIn talent blog revealed that employers that posted more about diversity received 26% more applications from women for example.

This data backs up The Psychological contract concept that first emerged in the 1960s related to our beliefs and expectations of our employers, confirming that employees want to work for employers with good practices where they also feel valued.

According to research from US firm, Eagle Hill Consulting circa 53% of workers stated that a company’s diversity, equity and inclusion (DEI) initiatives play a key role in their decision about where to work. Yet only 29% of employees say their current employer has taken additional action to demonstrate a commitment to DEI in the past six months.

Fairness and equality are becoming ever more important amongst the Gen Z demographic cohort specifically – with research demonstrating that 77% of Gen Z consider it important that their company supports diversity.

Similarly, the latest research from YouGov, which looks specifically at attitudes of employees in Great Britain on the topic of DEI, found that two-thirds of working Britons (66%) said that the acceptance and inclusion of employees of all backgrounds is important to them when considering job opportunities – especially since a ‘substantial proportion of respondents’ had faced some sort of discrimination in the workplace themselves.

Looking specifically at the role of DEI in recruitment terms, Sandra Kerr CBE (race director of Business in the Community), pressed the point that businesses don’t “underestimate the importance of strong diversity and inclusion policies for jobseekers”. She also pointed out that “employers could miss out on potential talent if they do not ensure that people from all backgrounds have the opportunity to grow and progress at their organisation,”

A stark warning indeed – particularly given the ongoing challenges around hiring talent and other variables such as a skills shortage and inertia to contend with.

Developing Your DEI Strategy

So, where do you start when it comes to developing a DEI strategy for your law firm? Conducting a sense check on your current practice is always a good idea, especially in light of remote and hybrid teams.

There is a well-versed quote from the personal development world that what you focus on grows. The converse is true. Perhaps the last couple of years have meant DEI, and its implementation has taken a back seat in your firm. We know from the latest headlines that the defined role of the ‘Chief Diversity Officer’ is waning, and there is more generally an exodus of DEI practitioners in businesses across all sectors.

And whilst this may, in part, have been driven by recessionary pressures or simply attrition, companies do concede that DEI in the workplace is still ‘mission critical’.

As recommended by Stephen Covey, the start needs to focus on the ‘end’ that the business has in mind. Assess your current state and where your desired state will be.

Your overall strategy needs to cover patterns in your ‘workplace’, whether that be remote or hybrid working; communication, both the what and the how; your L & D process and finally, how you will review your progress as you reinforce that your firm is the inclusive place to develop the legal career of it’s people.

Creating a more diverse and inclusive culture within law firms requires deliberate actions. Here are some strategies to consider:

1. Recognise and Counter Bias – Promote self-awareness among team members by providing training on recognising and countering bias. Encourage reflection and learning about each other’s backgrounds, circumstances, and personal stories. Regular gatherings, whether in person or virtual, can facilitate open discussions and promote a more inclusive environment.
2. Foster an Inclusive Internal Culture – Establish a culture that encourages open conversations about diversity and inclusion. Create opportunities for diverse groups within the firm to have a say in developing solutions. Have a clear plan in place to address bias and diversity issues, ensuring that every employee feels safe and heard.
3. Embrace Inclusive Leadership – Leaders within the firm should embody inclusive practices and lead by example. Encourage leaders to listen to diverse perspectives and create opportunities for marginalised groups to thrive. Inclusive leadership sets the tone for the entire organisation and fosters a culture of diversity and inclusion.
4. Utilise Data to Drive Progress – Measure the success of diversity initiatives by tracking relevant data and metrics. Setting clear metrics and goals allows firms to assess what is working and what needs improvement, and ultimately makes them accountable – especially when shared with all staff throughout the firm in question.
5. Create an intentional hiring plan – If your goal is to foster law firm diversity and inclusion, then there must be a laser sharp focus on how this is considered when it comes to hiring new talent for your firm. The plan in question should, of course, fully align with your vision and objectives, but also needs to consider any potential for implicit bias when screening and evaluating candidates for the role(s).

On that last point, research from Resources For Employers highlighted that 56% of the Business and HR professionals surveyed said they did have initiatives relating to DEI in their recruitment strategy. And, whilst 24% said they didn’t, there were plans to put these in place.

The benefits of DEI in recruitment are clear, although implementation can be challenging. There may be unconscious bias at play, a general lack of diversity awareness within the hiring team or senior management, inconsistent measurement or evaluation, or simply a resistance to change.

Collaboration and partnership with a legal recruitment specialist may offer some assistance here – especially one that has a good understanding of your market, practice area, and region, and who has an extensive network of engaged candidates to approach about your role(s). Recruitment consultants can offer meaningful steps in the process including screening and helping to craft job descriptions for optimum success, and those worth their weight in gold will also abide by ethical recruitment practices and standards to ensure the highest standards of professionalism, fairness, and transparency is key.

Conclusion

The importance of Diversity, Equity, and Inclusion (DEI) in the workplace cannot be overstated in today’s globalised and diverse workforce. A commitment to DEI not only aligns with ethical principles but also brings numerous benefits to organisations, including improved innovation, employee satisfaction, and overall business performance – as well as in the attraction and retention of top talent.

Diversity, Equity, and Inclusion are not just buzzwords or indeed an acronym to promote and mention on the company website. They are essential components of a thriving and forward-thinking legal firm who understands that they must actively embrace these principles to ensure a fair, just, and representative legal landscape more widely. By adopting inclusive practices, fostering diverse talent, and committing to continuous improvement, law firms can lead the way in promoting a more inclusive and equitable future for the legal profession in the United Kingdom.

About Clayton Legal

Clayton Legal has been partnering with law firms across the country since 1999 and has built up an enviable reputation for trust and reliability during that time. We have made over 5,000 placements from Partners to Legal Executives, Solicitors to Paralegals and Legal I.T. personnel to Practice Managers.

If you are building your legal team or looking for your next career move, we can help. Call us on 01772 259 121 or email us here.