Following the Pied Piper or Chasing the Unicorn: Hiring Lessons from Silicon Valley

Following The Pied Piper or Chasing the Unicorns:

Hiring Lessons from Silicon Valley

Evolve Law Darwin TalkMay 24, 2016

Jules Miller, Co-Founder

How is BigLaw hiring and compensating attorneys?

And how WILL they be in the future?

BigLaw Comp Strategy The Annual Bonus Procession

Cravath Announces Bonuses!

Hogan Lovells announces *some*

attorneys make more than at Cravath!

Hahahahah!

Simpson Thacher matches!

Pillsbury matches in NYC w/ lower bonuses on

West Coast…attorneys complain…Pillsbury

matches Cravath bonuses everywhere!

Davis Polk matches!

Winston & Strawn matches!

Gibson Dunn isn’t paying attention and pays lower…disgruntled attorneys leave.

Shut Up and Take My Money

BigLaw Hiring Strategy Eureka! The perfect formula!

NEW ASSOCIATE: School Rank + Class Rank + GPA = Chance of Success

EXPERIENCED ASSOCIATE: School Rank + Class Rank + GPA + BigLaw Employer Rank = Chance of SuccessPARTNER: How many clients can they bring over?

50% of law firms reported increases in alternative career paths, non-partner track & flexible attorney programs

77% of associates leave a firm by year 5

Highest attrition rates: years 2-5

Associate Attorney was the unhappiest job in America*

Attorneys now are more willing to trade salary for intangibles.

Firms lose the majority of investments in associates & training

“ ” “ ”

*beating out customer services associates & clerks…. Ouch!

It’s Not Working Law firms are losing top talent

• 27.2% of minority attorneys

• 26% of women attorneys

• 85% of minority women quit BigLaw within 7 years

Disproportionate Effects on Diversity

Corporate counsel clients are pushing for greater diversity

when selecting outside counsel.

Who’s Leaving? Law firms are spending more money and resources, but don’t

see results.

Top law firms in AM Law and Vault’s Diversity Rankings haven’t changed

significantly.

Study after study shows desire for:

1. Work environment, culture & reputation• Hiring process that emphasizes culture• Company reputation and pride

2. Job resources• Non-monetary perks• Prioritization of employee happiness• Latest tech tools

3. Opportunities + meaningful goals• Leadership opportunities• Belief that they are changing the world

4. Autonomy + control over work• Flexibility• Voice heard in management• Collaborative opportunities

Attorneys Want More Can’t buy me happiness

Attorneys who enjoy practicing the law but hate the culture are leaving BigLaw and

exploring other paths that offer these “intangibles”

And They Can Have It “Unicorns” are re-writing hiring rules

Not Just Your Competition Also potential clients

They want to work with partners who

share the same values

It’s Not Just Because of Billable Hours

Tech company employees work incredibly long hours

…just like law firms

Tech companies are highly competitive environments

…just like law firms

The stakes are high…just like law firms

And yet…

Tech Companies Offer MoreLaw Firm Tech Co

Long Hours, high Stress, high Stakes ✔ ✔Opportunity to make a difference (universe or organization) ✗ ✔

Practical skills tests ✗ ✔

Feeling like voice is heard ✗ ✔Collaboration with “rock stars” & flatter management structures ✗ ✔Non-monetary perks (Often demonstrating trust + appreciation) ✗ ✔

Emphasis on cultural fit + employee ✗ ✔

The hard work has meaning

Benefits and Perks For life outside of work

One year of paid leave for new mothers and fathers.

Covers the costs of freezing eggs and fertility assistance.

Annual stipend of $2,000 to travel anywhere in the world.

3 free meals a day, on-site acupuncture and improv classes

Compensated for seeing a life coach.

Standard at most tech companies: unlimited Vacation, Free meals and snacks, beer, yoga and meditation.

Reimbursement for daycare and adoption fees and $4,000 “baby cash”

Bikes, volleyball courts, heated swimming pools, on-site oil change and car wash services, dry cleaning, massage therapy, a gym, a hair stylist, fitness classes, bike repair and an indoor slide.

Relaxation lounges with video games, onsite hair cuts and monthly poker

tournaments. Bring your dog to work.

100% medical, dental and vision coverage to employees

and dependents.

Unlimited vacation policy w/ $1,000 in spending money for employees who take a vacation longer than a week.

Benefits and Perks While at work

Six days of paid volunteer time off and up to $1,000 to donate to a charity of their choice. 

"Fun Committee" to plan fun events and makes sure the startup culture doesn't slip away. 20% of time to work on

independent projects

Standard at most tech companies: equity, flexibility, transparency, work from home policies, team bonding events, rapid promotion based on meritocracy, personal and professional growth, focus on CULTURE.

“I have never felt more valued by any other company. Management supports promotions to ensure you're reaching your highest potential. I love my job!”

“I started as an hourly employee and the company has rewarded me for hard work

and creativity by allowing and encouraging me to work in a variety of roles.”

Personal and professional development funds. “Slack really wants you to grow as a person”

High level of transparency. Anyone can ask Travis, the CEO, a question at a weekly meeting.

“I feel like Pinterest genuinely cares about me as a person.”

It All Comes Down to CULTURE

Law Firms are stepping it up with startup-inspired programs and perks:

• Free monthly massages (Benesch, Friedlander, Copland & Aronoff)

• Dance-offs, karaoke, table tennis, ice cream sundaes, and weekly beer and pizza gatherings celebrate team and individual successes. (Cooley)

• Telecommute 25% of the time (Hogan Lovells)• Meditation classes (Kirkland & Ellis)• Massages, fresh fruit delivery, yoga classes

(Hanson Bridgett)• Telecommute up to two days a week (WilmerHale)• A dedicated Happiness Committee (Perkins Coie)• On-staff mental health professionals and coaches

(Fried, Frank, Harris, Shriver & Jacobson)• Wine parties (Crowell & Moring)• Unlimited vacation days (Seyfarth Shaw and Hogan

Lovells)

Some Progress

A good start, but we can do better!

1. Identify firm’s unique perks and align with core values

2. Connect the values promoted by those perks

3. Evaluate perks appeal to candidates/potential hires

4. Market and promote perks as evidence of firm’s values and culture points

Did you know about these perks?

Prediction: BigLaw will follow the Unicorns and start prioritizing culture!

Contact me @ [email protected]