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Costs of Inaction: The Business Case for the Hiring, Promotion, and Retention

of Women Lawyers

Women in the Legal ProfessionApril 6, 2011

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Organizations should focus on promoting women lawyers because it will improve the bottom line.

What Is the Business Case?

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Economic climate is affecting women and the initiatives that will promote women lawyers.

It is an absolute necessity for women’s initiatives to support and be supported by the business case.

Building a strong business case is the most important step in gaining support and commitment for women’s programs.

Business Case is Crucial

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Promoting Women Lawyers Workforce with best talent

Inclusive work environment

Positive reputation for organization

Client satisfaction

The Business Case and the Promotion of Women Lawyers Are Aligned

Business Case Highest quality work

Increased employee performance

Ability to attract new clients

Ability to retain existing clients

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Workforce and markets are changing rapidly. Diverse organizations better serve diverse clients.

New workers foster innovation.

“I think the real benefit of having women and diversity in a team is that you have a richer set of ideas. So. I truly believe that there is a direct relationship between team performance and having a diverse team with the best talents.”

VP Europe of leading global healthcare company

Reason No. 1: Increases Organizations’ Flexibility

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Female workforce participation is on the rise.

In the U.S., women comprise more than 50% of law school graduates and new entrants into the legal workforce. UNESCO statistics for Chile are similar.

Law firms cannot afford to ignore such a large talent pool.

Reason No. 2: Attracts & Retains Top Talent

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There are high costs associated with turnover, absenteeism, & low productivity.

For example:Make it more difficult for senior attorneys – leading to higher costs.

Lawyers with institutional memory are incredibly valuable to clients.

Reason No. 3: Reduces Costs

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Law firm-specific research is rare.

But, law firms’ governing committees are similar to corporations’ boards of directors.

The research in that area is clear: decision-making on corporate boards suffers when there are less than 3 women on a board.

Reason No. 4: Increases Financial Performance

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Companies with the highest representation of women board directors attain significantly higher financial performance, on average, than those with the lowest representation of women board directors.

Catalyst’s 2008 report - The Bottom Line: Corporate Performance and Women’s Representation on Boards.

More Women Board Members – Better Financial Performance

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Companies with 3 or more women in senior management functions score more highly on organizational criteria, which correlate to financial performance.

McKinsey & Company study of 101 large corporations in Europe, America, & Asia.

More Women Senior Managers – Higher Employee Satisfaction

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Companies with highest level of gender diversity in top management posts have better financial performance.

McKinsey & Company study of European listed companies with stock market capitalization of over €150 million.

More Women in Top Management – Better Financial Performance

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Companies that take diversity seriously like to hire law firms that do too.General Mills’ Call to ActionDuPont Women Lawyers’ Network

Many clients have women in power and expect the same of their law firms.The number of Fortune 500 female GCs is at an all time high (94).“[Y]ou don’t go to a board that’s got 40 percent women with an all-male team.”

General Counsel, Association of Corporate Counsel

Reason No. 5: Clients Demand it

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These judges want to see more women lawyers arguing before them.Judges in NY have noticed and are vocal about seeing the statistics improve.

Judges Are Starting to Demand it, too.

Courts are becoming more diverse. Lawyers appearing in court should reflect this diversity.

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Contact Information

Angela RellaMorrison & Foerster LLPChair, New York City Bar Association’s Women in the Profession Committee

arella@mofo.com