We are delighted to have Louisa Van Eeden of Lexis Nexis UK join us as a guest blogger on The Attic. Her first post takes a look at how millennials are shaping the future of the legal industry.
Millennials. They’re the generation that everybody loves to blame for, well, pretty much anything. They are branded as “snowflakes”, and written off as a problem that either needs to be overcome, or ignored until they ‘grow up’ and become more like the older generations. But who are they really, and what impact are they having on the legal industry?
Much like Generation X back in the 1990s, the term millennial is often used in the media to refer to anything related to a youth culture that other generations generally don’t understand that well. Unlike Generation X, the Millennial Generation was typically born between the early 1980s and the late 1990s, and grew up in a dramatically different landscape to their forebears. The world has changed: the internet dominates our lives, job security and home ownership are not a certainty; the future of the planet is at risk through climate change; and it’s becoming rapidly apparent that continuing with a business as usual attitude, just because that’s the way it’s always been, is untenable.
Consequently, millennials simply aren’t as compelled by traditional practices as previous generations, both in life and work. They are who they are. Where previous high achievers would chase salary, millennials now typically look for a company that aligns with their values. For the millennial, culture reigns supreme. In fact, a study recently conducted by Fidelity showed that millennials are willing to give up (up to) £7,600 in salary every year for a job that gave them a better environment and culture.
The Millennial Takeover
Considering that millennials now form the backbone of staff and client bases, making up to 35% of our current workforce, with that set to increase to 50% of the workforce by 2020, this is not a demographic to underestimate. Millennials are not just a vague notion of youth culture, they are real people progressing into management positions, and are shaping the technological and cultural landscape of every industry, including the law.
The “The Millennial Takeover”, identifies three key areas where the legal industry is seeing the impact of millennials:
#1 Talent Acquisition
This is a key battleground for law firms and one which millennials are well-positioned to approach and understand, especially because, as the Financial Times continues to report, firms are struggling to source and retain talent in today’s rapidly changing marketplace. Attracting the best and brightest young talent is more important than ever before, and harder than ever before, with this generation taking a markedly different approach to their careers. Millennials are key to helping law firms communicate their vision of the future, enabling firms to modernise with an eye to the demands of new talent and driving a competitive edge.
#2 The Ability to Drive the Profession Forward
Law firms are already changing with the millennial worker in mind. As the Law Journal Newsletter reports: “A number of firms have moved, remodelled or completely overhauled their physical workplaces with millennials in mind, favouring common areas, for example, over large corner offices.” But it’s not just physical changes, but more fundamental ones as well. As one of the co-founders of the Legal A-Team asserts, the partnership model – one of the traditional prestige markers in law firms – is no longer the aim: “Millennials want what they want and they want it now. The patience factor is not one of their fortes — they’re not going to stand around for 12 years.” In order to retain and attract millennial talent (and not lose them to agile, tech-forward start-ups), law firms will need to significantly adapt their culture and perhaps even their company structure.
#3 A Creative Approach to Business Practices
Law firms and lawyers need to think more creatively about their working practices in light of the rise of consumerism in today’s legal market. Client power is increasingly dominant, with billing and efficiency becoming ever more important. New and agile practices, from social media to technology, are areas where millennials excel. They also prefer to work collaboratively rather than as a silo, which may well serve firms well moving forwards. Being open to change and engaging in a dialogue with junior members of the team may be beneficial here, in order to ensure that the firm remains stimulated and doesn’t fall behind.
Millennials and Legal Tech
While all three areas are important to understand, technology is the one that underpins them all. The agile working practices and lateral knowledge-sharing solutions favoured by millennial legal professionals and legal start-ups are all enabled by technology. Indeed, there are already reports that legal tools are being used with increasing regularity. A recent LexisNexis In-house Insights report, ‘Legal Technology – Looking Past the Hype’ found that 85% of in-house legal teams surveyed have introduced multiple technology types and almost three quarters (73%) of respondents who have already introduced legal technology tools are making plans to expand their implementation. It is very likely that the next generation of lawyers will practise law in very different ways.
As Head of the Global Cyber Security Practice at Herbert Smith Freehills Andrew Moir suggests, lawyers have an obligation to stay up to date with legal developments and new technologies: ‘There have always been areas where an understanding of both the law and technology is helpful, such as patents, IT contractual disputes or cyber security. But now we’re increasingly being instructed on the legal aspects of cutting edge technology such as blockchain, electronic signatures, artificial intelligence, and data analytics, to name a few. Before we can advise on these sorts of developments, we really need as lawyers to understand the technology behind them.’
The Flexible Generation
Technology is undoubtedly changing the legal profession, and it’s likely that the next generation of lawyers will practise law in very different ways. Indeed, there is already a growing section of the workplace – populated by those who have different life demands and values – who no longer fit the traditional working model. This has led to an increase in portfolio careers as well as flexible working models designed to benefit both employee and employer. This can be seen in the continued success of organisations such as Obelisk Support, which recently joined the FT Future 100 UK list as a diversity leader – the only legal company to do so.
This trend is likely to continue to increase and evolve as more millennials dominate the workforce, bringing with them their approach to work-life balance, their use of technology as a natural enabler, the importance they place on purposeful business (one which looks beyond the profit line), their desire for flexibility, and their alternative definitions of success.
We are entering an exciting era for the legal industry, one in which we wait in watchful anticipation to see who will accept and accelerate this new approach to working culture, and what impact it will have across the legal profession and wider society.
For more insights on how young lawyers are best positioning themselves to weather the upcoming changes, check out our post on “The Legal Profession for Millennials”.