Making Time for Life 2006 SFAM Q3 12-29:Layout 1 9/1/06 3:19 PM Page 2 Susan Kostal Imagine running your sand company with only a sieve. You could shovel some sand, if you worked very hard. But so much ends up elsewhere that, despite your heroic efforts, it’s impossible to deliver enough T hat’s the issue law firms face in retaining women and, to a growing extent, Gen-X and Gen-Y lawyers of both genders. And while retention has been a perennial issue for law firms, demographic factors have coalesced to bring it into painfully sharp focus. “It’s definitely among the top five issues facing law firms these days,” says Blane Prescott, senior vice president with Hildebrandt International, a legal consulting firm. “Successful firms like to think five, ten years out. 12 FALL 2006 sand to your customers. There aren’t many issues we can predict five to ten years away, but we can predict population trends. And those are making a lot of firms nervous.” Simply put, the majority of law school graduates are now either women or minorities. And these are precisely the groups that most firms have difficulty keeping. The problem isn’t simply a financial numbers game, though that’s frightening enough. Experts estimate firms lose between $100,000 and $250,000 in hard-dollar costs 2006 SFAM Q3 12-29:Layout 1 9/1/06 3:19 PM Page 4 suffering boomers, who were willing to stay and work for change from within, Gen-X and Gen-Y lawyers are voting with their feet. “The profession is so much more competitive and corporate. It’s 24/7. Even though women in some ways have more leverage now because of the numbers and talent they represent, they still feel the squeeze,” Abbott says. The leverage of younger lawyers seems to have a greater effect. The women who are in top management at law firms today joined at a time when no one asked about maternity policies or part-time schedules. Now, applicants ask for such information at a very early part of the interview process, along with pointed questions as to how many equity and nonequity women partners are at the firm. “Some top students refuse to interview with firms that don’t bring women to conduct the interviews,” Gillette reports. Associates are excited by the buzz. “Personally, I am very encouraged there is a dialogue,” says Victoria Carradero, a fifth-year associate with Orrick, Herrington, and Sutcliffe’s employment law group and resident in the firm’s Silicon Valley office. The bar’s leadership is helpful, says Carradero. “It’s a great positive step. It’s overdue, but it’s happening.” She’s also pleased with what’s going on in individual firms. “Orrick has taken this beyond the discussion level,” she says. “There’s been a lot of time and money and resources from the very top of the firm put into our women’s initiative. It’s a serious agenda item.” Carradero says it’s important to remember that the issue is not one-size-fits-all. “I work with people who are on reduced schedule in my group as well as those who are not. People go on maternity leave and come back and jump right back in. I don’t see a lack of work being thrown their way or a decrease in the quality of the work. People do it differently, and I like seeing that.” There are firms that have made strides in retaining women without specific programs, but many tend to be smaller firms. At Coblentz, Patch, Duffy & Bass, for example, a sixty-five-attorney firm known for its real estate prowess, close to a third of the partners are women. 14 FALL 2006 (That’s twice the national average.) The firm has a wellused sabbatical program and allows partners to work reduced-hours schedules (two women litigators work half time), and it even opened a small office in Orinda to accommodate the needs of two partners who were managing both children and aging parents on top of a commute. “We don’t think of things under the category of ‘programs adopted in response to work-life issues,’” says Managing Partner Harry O’Brien. “It grows more organically at a smaller firm.” O’Brien explained that the firm was happy to open a satellite office in 2001 in order to keep two valued partners. “They were feeling the crunch of trying to raise a family, and so together we hatched a plan. Both women went to part-time status, and because the commute from the East Bay was a significant part of the problem, we got them some space in Orinda.” The office consists of two attorney offices, room for one secretary, and a conference room, which is often used by other attorneys who either live in the East Bay or see clients there. The leased space, which is cheaper than that in the firm’s office in the Ferry Building in San Francisco, makes that work-life balance possible. “Both of them are very organized and disciplined lawyers. Our hope is they will eventually come back full time,” O’Brien says. The message to both those partners and the other attorneys in the firm is clear. “The important thing is not that we have a program like that. It’s a culture of respect for things that aren’t captured on the monthly financial statement,” O’Brien says. Despite its currency, work-life balance is a decades-old buzzword. Former BASF President Mike Lee conducted the bar’s first flex-time/part-time survey in 1990, Haratani says. But the issue has been on the front burner for several years now with law firms and bar groups around the country. Locally, the issue received additional attention when distinguished professor Joan C. Williams, an expert on work and family issues, moved to UC Hastings College of the Law last year. One key to the issue’s longevity is the degree to which it’s been adopted by top leadership. This is not anony- 2006 SFAM Q3 12-29:Layout 1 9/1/06 3:19 PM Page 3 for every associate that leaves the firm. (Prescott says if you throw in “soft costs,” the figure is higher.) More importantly, clients want continuity on their matters, and they want to hire attorneys that look like them. And increasingly, the in-house attorneys issuing the request for proposal (RFP) are either women or attorneys of color. “We are at the tipping point on the issue of the status of women in the workplace,” says Patricia Gillette, a partner with Heller Ehrman and a leader of her firm’s Opt-In program, which is aimed at reducing turnover and finding out what it takes to help women stay at the firm. “Businesses recognize they need to be more responsive to the needs that are somewhat unique to women. The good news is something will be done about it. The bad news is that law firms lag far behind in thinking about how they can solve the issue.” This year, only one law firm, Arnold & Porter, made Working Mother magazine’s list of the 100 Best Companies for Working Mothers. While there have been more law firms on the list in previous years (most notably perennial Morrison & Foerster), there are never more than a handful. BASF’s Work/Life Balance Initiative, with its survey of practices and policies that affect all lawyers, but in particular women and caregivers (whether of children, partners or parents), aims to change that. BASF has asked firms to share their part-time policies for partners and associates with the goal of identifying best practices. BASF President Joan Haratani, a litigation partner at Morgan, Lewis & Bockius, has made it the touchstone of her presidency. Haratani is one of the city’s successful minority women partners and a leader in both local and national bar groups. But in her twenty-two years in large law firms, she’s found it’s lonely at the top. “Many of my very best friends I made in law firms left,” she explains. “They felt there were too many demands, too much pressure, to make it work.” While each woman entered with the goal of becoming a partner, the tension of balancing work and family life was too great. “My hope is there is a kinder, gentler, more realistic, more holistic way of looking at the whole of a person and their legal career,” Haratani says. Work-life balance advocate Charlie Spiegel, a real estate transactions lawyer who is of counsel with Stein & Lubin, echoes that sentiment. Spiegel has worked a flexible, reduced-hours schedule since shortly after his daughter was born in 1997, first at a national law firm as a partner and now at Stein & Lubin. Spiegel also took two years off completely to raise his daughter and was able to return and find meaningful work. Spiegel acknowledges that his career path is “progressive, veering on revolutionary” in the eyes of many, but he says he feels good about his decision, both for his family and the profession. “This is forward movement for the human race, for diversity,” he says. Still, many focus on work-life issues as part of their efforts to retain women. Most experts confess they believed there would be more women partners at law firms by now, and more women in leadership. “Some days I feel really frustrated,” says Ida Abbott, a longtime consultant to law firms on issues of training and mentoring. “I have not felt really optimistic for a long time.” Abbott says she also “expected things would be more equitable on a micro level, within families.” But women still carry the bulk of the family and home duties. “Young women partners are exhausted. They are squeezed in every direction. They are the most beleaguered group in the profession,” Abbott says. Not only are they expected to bill a full load, serve clients, and bring in their own clients, but also they are expected to be sympathetic to associates who come in and say, “You can appreciate the need for me to get home at six for the sitter.” Women joke that men with wives have always had work-life balance. And while individual women have reached the upper echelons of their firms, attorneys agree it’s more difficult these days, in part because billable hour requirements are higher and technology has had the perverse effect of making it harder to be truly away from work. While baby boomers were willing to make sacrifices to “have it all,” conventional wisdom holds that today’s younger attorneys are not. They want to see immediate change, and unlike the more long- THE BAR ASSOCIATION OF SAN FRANCISCO SAN FRANCISCO ATTORNEY 13 2006 SFAM Q3 12-29:Layout 1 9/1/06 3:19 PM Page 5 mous grumblings bubbling up from associate committees. It is being advanced by firm leaders such as James J. Sandman, managing partner of Arnold & Porter, who in 2003 wrote the oft-cited “The Business Case for Effective Part-Time Programs,” first published in the Women Lawyers Journal. Many firms, including Orrick, Wilson Sonsini, Reed Smith, Holland & Knight, Paul Weiss, Vinson & Elkins, and Kirkland & Ellis, have adopted women’s initiatives that are designed to increase the retention of women attorneys. Others, such as Heller Ehrman, have designated partners to focus on retention. Some, like Sonnenschein Nath & Rosenthal, use their firm Web sites to publicize how many attorneys work part time, as well as the percentages of women partners and associates, along with similar statistics for minority and LGBT attorneys. Experts agree that true change will need to go beyond part-time policies. “We need to change firm dynamics and look at careers over the long term, not just year by billable year,” says Gillette. “In a twenty-year career, you may have two to three years, or even four to five years, that are not as productive,” she says. Heller’s Opt-In program has adopted that attitude, she says. “Opt-In means you have made a conscious decision to look at your time with the firm as a career,” she says. As part of her work, Gillette has begun interviewing every attorney who leaves Heller between his or her third and sixth years. “It’s been very informative,” she says. “Billable hours are the primary reason people cite for leaving. These associates have usually made their hours, but they are afraid of not making them.” More importantly, Gillette is part of a group that interviews women who stay. Still a work in progress, the group hopes to publish its findings. Thus far, early work shows common traits in women who stay, including an appreciation of the “work” half of the work-life balance, a sense of reality about their abilities, and a pragmatism that seems to allow for a more guilt-free existence. Part of the discovery process of what’s possible in seeking work-life balance is an investigation of other industries, particularly accounting and investment banking. Both bar leaders and those in large law firms have opened dialogues with women at accounting firms. While there are still factors that make law firms very different from both accounting and banking firms, there are lessons to be learned. For example, Prescott points out that while everyone talks about the importance of training and mentoring, the law firm model gives it short shrift. “Lawyers are paid by the hour. Gee, if I sit here and mentor you, I make less money,” Prescott says. “Fortunately, there are lots of humans who will do things that are not in their economic interest.” At one large accounting firm, says Gillette, partners are penalized if they bill more than a thousand hours annually. The focus, she says, is supposed to be on bringing in business and training and mentoring those below you (key in a business where the leverage is significantly higher than in law firms). In the end, though, retention of women won’t be won because of cost savings, says Prescott. “The truth is, law firms have operated forever with these costs. Most law firms don’t worry to an extraordinary degree about this. No one attempts to increase profits by reducing turnover. More important is the effect on morale when good people leave the firm. That is far more damaging than the dollars.” Susan Kostal is a longtime legal affairs writer based in San Francisco. She can be reached at [email protected]. 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