Prioritize on mental health, regulate work hours: How Indian law firms can curb attrition and attract talent

If Indian law firms do not focus on building and strengthening cultures that are fair and equitable to their professionals, they will continue to face high attrition rates and lose them to other jurisdictions and segments, a study by Vahura has warned.

"Despite professionals reporting that their workplaces are largely positive, over 50% of professionals have also reported that they are looking to move on from their current firms on account of inequitable pay, working unsustainable hours and the impact that the consequent stress has upon their physical and mental health," the study reports.

Vahura's Best Law Firms to Work Report 2022 rated J Sagar Associates, Shardul Amarchand Mangaldas and Trilegal as the best big law firms (over 250 professionals) to work for. Among the firms with 51-250 professionals, King Stubb & Kasiva, Saraf & Partners and S&R Associates were the top three. For smaller firms having 10-50 lawyers, BTG Legal, Panag & Babu and Rajaram Legal were rated highest.

The survey, conducted in collaboration with Stakeholders Empowerment Services (SES), exhibits workplace trends in Indian law firms during and beyond the COVID-19 pandemic and puts forth suggestions on improving the Talent Experience Index, a gauge that reflects the culture, leadership and wellness of lawyers at firms.

The survey included over 1,450 professionals across over 300 law firms in India and looked at varied indices from work culture, firm leadership, satisfaction, work-life balance, rewards and recognition and prestige associated with working with law firms. The respondents were majorly from the cities of Mumbai, Delhi, Kolkata, Hyderabad, Bangalore and Chennai.

While there has been a lopsided influx of workload for law firms owing to the boom in strategic M&A, investments and their resultant advisory owing to rapid change in regulations, court-based litigation experienced a lull, especially in the initial phases of the pandemic, with independent advocates, chambers and boutique firms experiencing a hit like never before.

Although active steps were taken by many law firms to ensure the well-being of their professionals, increased work hours, burnout and stress, coupled with remote working setups, led most lawyers to resign from their workplace. They moved to another firm in the same practice, moved in-house, left law altogether, shifted to a flexible role, worked as a freelancer or pursued higher education, the report states.

From the responses garnered through the survey, the report shed light on the positives and negatives associated with working in Indian law firms. The positive findings from the survey include:

• 89% of the professionals surveyed rated their firms as positive workplaces.

• Over 70% of professionals reported that their partners trust them to do a good job without being micromanaged.

• Over 70% professionals feel they can have straightforward conversations with colleagues, count on their colleagues to work jointly to meet impending deadlines.

• 78% of professionals reported that they are given a lot of responsibility at their firms. Of this, over 75% of professionals reported that they were very satisfied with the quality of work assigned to them.

However, the downsides reported are:

• Around 50% of law firm professionals who participated in the survey do not see themselves continuing to work with their current firms in the long-term.

• Around 45% of professionals who reported working between 10-12 hours a day, reported that they routinely felt stressed and tensed during a workday.

• Only 18% of such professionals reported that their firms encouraged professionals to maintain work-life balance and only 44% of such professionals reported that their firm allows them to take time off work.

As per the survey, one of the key aspects that have sustained over 75% professionals at law firms is the quality of work. Over 250 lawyers indicated that while the reputation of the firm and remuneration are important factors, culture and growth prospects were more valued. Similarly, over 70% professionals reported that the tendency to micromanage reduced considerably, coupled with improved trust, camaraderie and cohesiveness among peers and with partners which has led to increased productivity.

The contributing factors leading to high attrition over the past two year is the unusually long and unsustainable working hours. Less than 50% professionals working in firms with less than 250 professionals experienced dissatisfaction in remuneration and performance driven variable pay, while the trend was starkly opposite in firms with more than 250 professionals where around 60% feel adequately compensated.

While professionals in senior positions experience a surge in their roles and responsibilities, junior professionals attribute their long hours to understaffed teams. Over 50% professionals in firms with more than 250 members are also seen to report on unrealistic client expectations as a major contributor to prolonged work hours. Uneven distribution of work and artificial internal deadlines are other trends seen predominantly in firms with over 250 professionals. The resultant stress and anxiety on professionals working unsustainably long hours has a dire impact on their physical and mental health well-being.

There is also reported to be a certain rigidity in allowing professionals to have a say in matters concerning their work environment. A minority 21% of professionals who reported feeling stressed admitted that the leadership gave them an opportunity to listen to their concerns. The lack of empathy with under-appreciation by peers and partners even when professionals have gone the extra mile is another trend of concern.

The report shines light on global practices of sensitizing partners with better people management skills, at the core of which is enabling an environment of empathy. Going the extra mile to get to know team members on a personal level, combined with better communication and a defined roadmap aligned with the firm’s long-term goals, could go a long way, the report states.

The report suggests constituting a Professional Wellness Committee with partners and HR professionals at the firm who can together devise policies and programmes for the well-being of its members. As part of this, it is suggested that sessions can be conducted to train partners to be better people managers.

On the predominant concerns of stress and anxiety, it is suggested that safe spaces be created within firms for professionals to voice their challenges. The report also calls for external experts to address these troubles. Keeping a close check on billable hours of professionals is also necessary and regulating the same after calculating the median billable hours. With one of the main factors leading to prolonged hours being reported as unrealistic client expectations, it is suggested that partners be vocal with clients about timelines.

Making mental health a priority by setting aside days for rest and recuperation and providing alternate work arrangements can also prove crucial to lawyers at firms, the study notes.

As regards dissatisfaction in pay, it is suggested that the market standards of compensation should be assessed and benchmarked. Transparency in policies defining calculation of variable pay can prevent professionals from being in the dark.

Additional perks like allowing a flexible work arrangement for new parents, mentorship programs for junior and mid-level professionals, medical coverage for professionals and their dependents, and ensuring periodic upskilling programs, can also enhance talent retention at firms.

Investing in brand equity by offering learning and development opportunities is another suggestion that could go a long way for firms.

While the transition to working remotely might have been a rough one, the pandemic-induced way of working has seen less than 10% professionals wanting to move back to working from the office, while a majority prefer a hybrid model allowing them the flexibility to work from anywhere or from office when required.

The tables below indicate the top 10 firms on the basis of specific

Among the many firms making it to the top 10 list across categories, only Rajaram Legal and Panag & Babu features in all categories. BTG Legal features among the top 4 firms in majority of the individual categories

The top 3 firms based on perception of a prestigious brand are AZB & Partners, Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas. Based on students' choice, the top 3 firms are AZB & Partners, Khaitan & Co and Trilegal.

The chart below shows the perception-based rankings of the top 3 firms classified on the basis of practice areas.