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1 in 3 non-equity partners looking to change firms
New research has revealed that a “lack of decision-making control” and concerns about remuneration have led to dissatisfaction among non-equity partners.
Jerome Doraisamy
In the sixth annual Mind The Gap Legal Survey, conducted by Pitcher Partners, it was found that one-third of equity partners in “leading” law firms are looking to switch employers. Moreover, remuneration is a particular sore point, demonstrated by a 15 per cent difference in satisfaction between participating equity and non-equity partners.
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These issues are “particularly acute” for female non-equity partners, with two in five thinking of making a switch to another firm.
Only half of non-equity partners that participated in the survey said they had a personal wealth accumulation strategy, compared to 75 per cent of equity partners who have a wealth accumulation strategy and 91 per cent who felt their assets were adequately protected.
According to Pitcher Partners executive director Ben Lethborg: ““We’re seeing non-equity partners dissatisfied, in part because they work extremely hard often without a clear path to equity partnership.”
“I feel that equity partnership is sometimes being dangled like a carrot, often with limited commitment, planning or advice from incumbent partners on how to get there. Many non-equity partners we speak to feel their firm has no real intention to offer equity, and the lure is being used to tie them to the firm for another year or two,” he said.
The survey also found that women are “significantly less happy than men” with regards to the decision-making processes in firms (64 per cent versus 82 per cent).
Elsewhere, it found that partners are “still lagging” on technology, with 43 per cent of participants saying that they “do not understand new technology” and only 55 per cent say that they use new tech to help improve the client experience.
The gaps uncovered in the findings, Mr Lethborg surmised, were “telling”.
While firms recognised the importance of a collaborative culture, a clear growth strategy and the attraction and retention of talent, he mused, many staff felt firms were not getting traction on these fronts.
“We can see that most firms understand the importance of strategy, culture and talent in their growth plans, but there are gaps between what they know needs to be done and what has been achieved,” he said.
“The critical focus for firms now needs to be on closing the gap between aspiration and achievement, by developing the right strategic plan for the firm, communicating that clearly to the people the firm needs on board for success, and then tracking and monitoring progress over time.”
The survey is conducted annually among law firms from across Australia and New Zealand, with the 2020 report including feedback from 72 partners as well as 64 firms.
