Women In Law Firms - McKinsey & Company

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Women in law firmsMarc BrodhersonLaura McGeeMariana Pires dos Reis

Women in law firmsLaw firms have many of the right policies and programs in place to improvegender diversity, but more can be done to translate stated commitments intomeasurable outcomes.As part of our broader Women in the Workplace2017 research, we conducted a deep dive onwomen in law firms in North America. Out of the222 participants in the overall research, 23 arelaw firms that employ more than 16,000 attorneys.These firms provided us with their talent-pipelineand programs and policies data. Additionally, morethan 2,500 of their attorneys answered ourexperience survey. These data have allowed us tohighlight unique challenges that law firmsface to advance women relative to the rest of thebroader corporate America (referred to asthe “overall sample” throughout the report).The survey finds that law firms are takingimportant steps to increase gender equality. Theyare providing senior-leadership support to advanceattorneys’ careers and offering programs thatprovide flexibility and address major work–lifebalance issues.But these efforts have had limited success. Only19 percent of equity partners are women, andwomen are 29 percent less likely to reach the firstlevel of partnership than are men. We foundthat law firms face higher attrition among womenthan men at the equity partner level and thatthe gender gap is much wider in law firms than inother industries. Women of color face an evensteeper climb, with their representation droppingsignificantly at all levels in the pipeline.Female attorneys perceive less commitment togender equality and a more uneven playingfield at law firms than do their male colleagues.Law firms clearly have more work to do, not just inimplementing policies and programs but alsoin fundamentally changing nonpartner attorneys’2Women in law firmsperceptions of their efforts. For example, femaleattorneys (and many of their male colleagues)fear that participating in flexible-work programswill damage their careers. The question nowis how those firms that have invested in—andrecognize—the benefits of gender equalitytranslate their stated commitments into measurable outcomes.Gender diversity in law firms’ talent pipelineWomen are relatively well represented in theprofessional pipeline until the equity partner level,where women’s representation drops sharply.We measured four dimensions of gender diversityand found that law firms have room to improvealong each one: Representation. Are women represented fairlyat each level? Promotion. Do women advance as rapidlyas men? Attrition. Do women choose not to advanceat a certain point? External hiring. Are women hired at the samerate as men?Representation of women decreases rapidlyat post-associate levels. Women are relatively wellrepresented at all three associate levels (junior,midlevel, and senior), where they account for about46 percent of attorneys. However, this picturechanges sharply as attorneys advance to more seniorlevels. Only 19 percent of equity partners arewomen, and women occupy only 25 percent of

executive-leadership positions (managementcommittee and practice leadership). This declineat the more senior levels mirrors the overallsample, where women represent 47 percent of theentry-level workforce but only 29 percent at theVP level, 21 percent at the SVP level, and 20 percentof the C-suite.10 percent of senior associates, 3 percent of equitypartners, and 4 percent of managing partners(Exhibit 1). This is consistent with the overallsample, where women of color occupy 17 percent ofentry-level positions but only 6 percent at theVP level, 4 percent at the SVP level, and 3 percentof the C-suite.White Paper 2017Women of color1 are especially underrepresented inWomen lawyers in the workplace—lawyerslaw firms. While they account for 16 percentExhibit 1 of 9Fewer women than men advance at the prepartner level, but female attorneys advance moreoften than women in other industries. Unlikethe overall sample, where first-time promotions arethe least equitable (with women being 18 percentof attorneys at the entry level, they experience thesteepest decline in representation as attorneys’careers advance. Women of color account for onlyExhibit 1Representation of women decreases rapidly at post-associate levels.Representation in law firms’ pipeline by gender and race, % of attorneys by level in 20171Junior associatesWhite men41Men of of color162017pipeline% of tner57766651621Board counsel48319313613104446633719822442526Women of color are the most underrepresented group in the pipeline at post-associate levels—behind white men, white women, and men of color.1 Total% of women and men per level in race and gender pipeline may not sum to overall pipeline totals, as the race pipeline only includes firmsthat were able to supply race data. Due to rounding, representation by race may sum to 101 within some levelsWomen in law firms3

White Paper 2017Women lawyers in the workplace—lawyersExhibit 2 of 9Exhibit 2Fewer women than men advance to the first required level of partnership.For every 100 women promoted to partner, 141 men are promotedless likely to be promoted than men), in law firmsfirst-time promotions are much closer to equity(11 percent gap). It is at more senior levels that thedisparity grows. The more significant gap existsat the promotion to the first level of partnership,2where female attorneys are 29 percent lesslikely than men to gain promotion (Exhibit 2).Attrition among women is lower than that amongmen, until the equity partner level. Women leavelaw firms less frequently than men until the equitypartner level, where this one-year data samplesuggests they are 43 percent more likely than mento leave. Compared with the overall sample,where differences in attrition are not significant,this gap is much higher. Given the small sampleof female equity partners, more research is requiredto validate the trend over a longer time period andto establish the drivers for the increase.External hires for more senior positions are lesslikely to be women than men. External hiring ratesfor women and men at the junior- and seniorassociate levels are almost equal. But men are more4Women in law firmsWomenMenthan twice as likely to be hired for a non-equitypartner/counsel-level position. At the equitypartner level, external hires are more than threetimes more likely to be men than women (thoughit’s worth noting that the pool of available women ismuch smaller). This trend does little to correctthe underrepresentation of women at the top of thecareer ladder.Women of color are especially underrepresented atsenior levels (again, it is worth noting that thereare fewer women of color available to fill these positions). In 2016, law firms in our sample hiredexternally to fill 132 equity partner positions. Onlyfour of those hires were women of color. Tofully diagnose this issue, more research is neededto understand gender diversity in specific practiceareas where lateral hiring is more common.Differences in men and women’sexpectations and experiencesWomen and men in law firms have verydifferent expectations for promotion and lengthof service. Work–life balance, a law firm’s

demonstrated commitment to diversity andequity, and senior-leader support exert a powerfulinfluence on attorneys’ ambitions and desireto stay.Women want promotion to the next level as muchas or even more than men but are less excitedabout making partner. Across the associate levels,women express a strong desire for promotionto the next level. But when asked specifically if theywant to make partner, the desire drops sharplyWhite Paper 2017compared with men (Exhibit 3). This drop mirrorsWomen lawyers in the workplace—lawyersthe pattern observed across the overall sample,Exhibit 3 of 9but more women in law firms (58 percent) want toreach the partner/SVP level than do women acrossthe overall sample (40 percent).Exhibit 3Women expect to spend less time at their lawfirms than their male counterparts do. Only54 percent of women plan to stay with their lawfirm for at least five years, compared with 63percent of men who do (versus 56 percent of womenand 58 percent of men across the overall sample).Less than half of women (43 percent) and of men(45 percent) who expect to stay with their firmfor two years or less plan to work at another firm,suggesting issues other than gender diversity,such as job fatigue or a realistic view of the likelihood of making partner.Female attorneys feel forced to make significanttrade-offs between career success and theirpersonal lives. Only 44 percent of women believeWomen are less excited than men to make partner.% of women and men who want to . . .WomenMenTop reasons why respondents do notwant to be a partner. . . be promoted to the next level. . . be a partner% of women and men who agreeInability tobalance familyand workcommitments58787473Not enoughbenefits for thepersonal costs545634Not wantingthe pressureToo much politicsNot interested inthat type of workWomen in law firms615132261717235

that they can have both, compared with 60 percentof men who do (versus 61 percent of womenand 67 percent of men across the overall sample)(Exhibit 4). Almost half of female attorneyscall prioritizing work–life balance one of thegreatest challenges to their professional success,on par with undermining peers. The difficultyof balancing work and family is the number-oneWhite Paper 2017reason that women do not want to make partnerWomen lawyers in the workplace—lawyers(61 percent), followed by inadequate benefitsExhibit 4 of 9for the personal costs (54 percent) as the numbertwo cited reason. Men cite the same top tworeasons, but in reverse order, ranking the personalExhibit 4costs first (56 percent) and the difficulty ofbalance second (51 percent).Women are not convinced by law firms’statements of commitment to gender diversity.While all law firms call gender diversity a veryimportant or a top priority, only 36 percent ofwomen believe that gender diversity is a priority fortheir firm, compared with 62 percent of menwho do (versus 45 percent of women and 59 percentof men across the overall sample). And less thanhalf of women say that their firm is doing what ittakes to improve gender diversity, comparedWomen believe there are significant trade-offs between careersuccess and their personal lives.WomenAttorneys can have both a successful career and a fullpersonal lifeBehaviors attorneys believe would jeopardizesuccess in their firm% of women and men who agree% of women and men who agree45Prioritizingwork–life balance3145Undermining peers57446043Showing doubt36Pushing back onmanagers or seniorleaders363620Any failure, bigor smallShowingcommitmentto family6Women in law firmsMen21167

White Paper 2017Women lawyers in the workplace—lawyersExhibit 5 of 9Exhibit 5Women see the playing field as uneven.Women are less likely to think they have an opportunity to advance . . .WomenMen% of women and men who think . . .467. . . my gender has played arole in missing out on araise, promotion, or chanceto get ahead.6114. . . my gender will make itharder to get a raise,promotion, or chance toget ahead.6172. . . I have as equal anopportunity for growthas my peers. . . and that their firms treat their people fairly% of women and men who think . . .4156. . . the best opportunitiesgo to the most deservingemployees.4457. . . assignments at thisfirm are based on fair andobjective criteria.3952. . . a broad range ofleadership styles issuccessful at this firm.with more than two-thirds of men who do. Thesenumbers mirror the overall sample findings.is effective (versus 48 percent at the VP level andabove across the overall sample).Lack of effective communication probably playsa role in attorneys’ perceptions. Most law firms (96percent) say that they have articulated thebusiness case for gender diversity—but employeesare not convinced. Only 22 percent of womenand 44 percent of men agree that partners communicate the importance of gender diversity (versus30 percent of women and 42 percent of men acrossthe overall sample). These perceptions differmarkedly from the views of practice leaders—60percent of whom believe the communicationWomen see the playing field as uneven. More than60 percent of women surveyed think that theirgender will limit their advancement opportunities;only 14 percent of men have such a concern(Exhibit 5). Women are considerably less likelythan men to think that promotions and assignments at their firm are based on fair and objectivecriteria. The strength and depth of client relationships is perceived by female attorneys as thenumber-two factor in the partner-election decision(second only to profitability), and they believeWomen in law firms7

they have fewer opportunities than male attorneysto network with clients (57 percent compared with67 percent).Senior leaders at law firms provide more informalsupport to women than in other industries. Womenin law firms are more likely than men to say thatWhite Paper 2017their supervising attorney or partner has helpedWomen lawyers in the workplace—lawyerstheir career. More than half of women (58 perExhibit 6 of 9cent) and almost half of men (48 percent) credittheir supervising attorney or partner withadvising them on advancing their careers, comparedExhibit 6with 40 percent of women and 44 percent of menacross the overall sample.At the same time, more men than women believethey receive adequate coaching in their firms.When asked about the most important successfactors, women ranked senior-leader sponsorship(including coaching and growth and development opportunities) second only to delivery ofexceptional results. Law firms lag behind the overallsample on coaching, and female attorneys havelower coaching expectations than male attorneysWomen have lower coaching expectations than men.% of women and men who say their supervising attorney or partner . . .Women6053White36Paper 201728Women lawyers in the workplace—lawyersExhibit 7 of 9. . . is expected to coachExhibit 74839. . . openly discusses futurecareer opportunities. . . provides growth anddevelopment opportunitiesMany law firms have programs and policies to support work–life balance.% of firms that report they offer . . .100100Law firms91837763All companies7456403822. . . ability to workpart-time or on areduced schedule8MenWomen in law firms. . . emergencybackup childcareservices. . . extendedmaternity leave. . . extendedpaternity leave. . . programs tosmooth transitionto and fromextended leave15. . . on-site childcare

White Paper 2017Women lawyers in the workplace—lawyersExhibit 8 of 9Exhibit 8Attorneys worry about the consequences of participating in flexible-work programs.% of women and men who think . . .75Women74. . . participating in a part-timeor reduced-hours program willnegatively affect my career45. . . participating in a maternity,paternity, or family leave will negativelyaffect my careerdo. Only 36 percent of women expect coaching,compared with 53 percent of men who do (versus57 percent of women and 62 percent of menacross the overall sample) (Exhibit 6). While lawfirms outpace the overall sample in providing growthand development opportunities, female attorneysare still 20 percent less likely than their male counterparts to credit their supervising attorneyor partner with providing such opportunities.Diversity policies and programsLaw firms are taking important steps to improvethe experience of women but have more to do.Law firms lead the way in implementing programsand policies to reduce bias in recruiting andpromotions. Almost 90 percent have hiringstrategies that target underrepresented minorities(versus 66 percent across the overall sample), and83 percent have level-specific programs to improvepromotion rates for women (versus 56 percentacross the overall sample).Many law firms have programs that provideflexibility and address major work–life balanceissues. All the law firms surveyed offerthe option of working part-time or on a reducedschedule (versus 77 percent across theWomen in law firms3759Men55. . . participating in a flexiblework schedule will negativelyaffect my careeroverall sample) (Exhibit 7). Most law firmsallow telecommuting (versus 75 percent acrossthe overall sample).Most law firms (91 percent) offer maternity leavethat exceeds government requirements, andmost (83 percent) offer paternity leave that alsoexceeds those requirements (versus 63 percentand 56 percent across the overall sample). All of thelaw firms surveyed provide emergency backupchildcare services (versus 40 percent across theoverall sample). But only 22 percent of law firmshave on-site childcare, and none subsidize regularchildcare (versus 15 percent and 18 percent oforganizations across the overall sample).Attorneys worry about the consequencesof participating in these programs. Seventy-fivepercent of women and 74 percent of men in lawfirms believe that participating in a part-time orreduced-schedule program will have negativeimpact on their career (versus 68 percent and 71percent across the overall sample) (Exhibit 8).Attorneys are also considerably more likely thanemployees across the overall sample to thinkthat taking maternity or paternity leave will hurttheir career. Female attorneys cite their inabilityto generate billable hours during a time of leave as9

White Paper 2017Women lawyers in the workplace—lawyersExhibit 9 of 9Exhibit 9Most law firms track gender diversity metrics, but few set targets.% of firms that report they track gender metrics and set targets100Targets set9691917461353522Representationin partnershipelectionsAttrition3022Representation Representationat all levels ofin key functions/partnershippractice areasthe number-one source of damage, followed byperception by others at the ignment ofhigh-visibilityprojectssample. Only 5 percent of women and 9 percentof men see leaders regularly held accountablefor progress on equality, compared with 16 percentof women and 22 percent of men across theoverall sample. Most law firms (87 percent) offerunconscious-bias training, but only 30 percentrequire program participation.Law firms lack the gender-equality targets andsenior-leadership accountability that would enablethe tracking needed to ensure real progress.None of the law firms surveyed have mandateddiversity slates for open positions (versus30 percent across the overall sample). All the lawfirms track gender diversity in partnershipelections, but only 35 percent set targets (versus 18percent across the overall sample) (Exhibit 9).Law firms should ask themselves some keyquestions as they confront a need to get more outof their investments in diversity.Only 43 percent say that they hold senior leadersaccountable for performance against genderdiversity metrics, and even fewer use financialincentives. Attorneys perceive little emphasison results, significantly less than across the overallPrograms and policies may demonstrate acommitment to equality, but they won’t deliverthe required outcomes on their own. Gettingmale and female attorneys at all levels of the firmto own this issue together appears to beWomen in law firmsPriorities to improve gender diversity

the only path to making a change toward genderequality in law firms. Our research findingssuggest that addressing the following questionscould help law firms focus their efforts on thebiggest challenges:How do we make flexible-work programs areal option? While most law firms offer flexiblework programs, many attorneys still fear thatparticipating in these programs will damage theircareers. More needs to be done to make these aviable option. Law firms must make these programsculturally acceptable and even encourage attorneysto take advantage of them.Where should we invest to strengthen coachingand formal sponsorship? Law firms are relativelyin line with other industries here (that is,approximately 30 percent have formal sponsorshipprograms). The challenge is how to catalyzesenior-level connections that can accelerate women’scareers with long-term benefits to retentionand recruitment.1Women of color includes Black, Latina, Asian, AmericanIndian or Alaskan Native, Native Hawaiian, Pacific Islander, ormixed-race women.2 Promotion rates are calculated as the number of attorneyspromoted to the first required level of partnership—whethernon–equity partner or equity partner—at their firm dividedby the number of attorneys eligible for that promotion, excluding any permanent positions not eligible for promotioninto partnership.Marc Brodherson is a partner in McKinsey’s New Yorkoffice, Laura McGee is a consultant in the Torontooffice, and Mariana Pires dos Reis is a consultant inthe Silicon Valley office.The authors would like to thank Thomson Reutersfor its help in convening legal-industry participation inthe 2017 Women in the Workplace study and toacknowledge Kishore Eechambadi, Aleesha Melwani,Philip Poole, and Paige Rattner for their contributionsto this article.Copyright 2017 McKinsey & Company.All rights reserved.Cover photo: The Palmer/Getty ImagesHow do we drive accountability for genderdiversity? Until firms find ways to make diversitya firmwide issue, not a “women’s issue”—and an issue that galvanizes the partnership anddemands accountability for progress—theywill likely struggle to translate programs andpolicies into results.Law firms clearly take gender diversity seriouslyand have made efforts to increase their diversity. But challenges remain, and the law firmscommitted to superior performance andemployee satisfaction will act to address them.We hope that the information and ideaspresented here provide useful guidance onmoving forward.Women in law firms11

Contact for distribution:workplacesurvey@mckinsey.comOctober 2017Designed by Global Editorial ServicesCopyright McKinsey & Company

Women and men in law firms have very different expectations for promotion and length of service. Work-life balance, a law firm's White Paper 2017 Women lawyers in the workplace—lawyers Exhibit 2 of 9 Fewer women than men advance to the first required level of partnership. or every Women1 women promoted to partner, 141 men are promoted Men

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