1 August 2024 | Dr Jo Kandola

The risk of getting it wrong: When law firms’ DEI fails

Failing to act on diversity and inclusion can have serious consequences for law firms, from reputational damage and costly lawsuits to hiring and staff retention problems.
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While law firms have increasingly been advising their clients on mitigating risks around diversity and inclusion, progress on tackling discrimination and inappropriate behaviour in their own ranks has been slow. Research continues to indicate deeply entrenched problems in the legal industry, with a 2021 study by lawyer wellbeing charity Law Care finding that just over one in five participants had experienced bullying, harassment or discrimination in the workplace over the preceding 12 months.

What happens when a law firm’s DEI fails?

So where are law firms going wrong when it comes to diversity and inclusion – and what are the risks of failing to act?

‘Stay single and childless if you want to get ahead’: Women in law

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Treating your female employees differently to your male employees can land you in decidedly hot water, as West Country law firm Follett Stock discovered when they were slapped with headline-hitting allegations of bullying and gender discrimination by solicitor Kate Baker.

Her boss, Baker alleged, had told her to remain ‘single and childless’ if she wanted to progress in her career and having previously been the company ‘star’, she found herself abruptly fired from her job after embarking on a relationship. Baker also claimed unfair treatment on the grounds that she was expected to undertake weekend marketing activities for the firm because she ‘was single with no children’, while her married male partners were excused.

While eventually settled out of court for an undisclosed sum, the case highlighted some of the discriminatory practices that continue to impact women in the legal services profession.

Studies show women continue to suffer discrimination and harassment on a grand scale, with a recent study by the First 100 Years Project finding that an alarming 58% of female lawyers had either personally experienced or witnessed inappropriate behaviour at work. Concerningly, too, almost half of the women surveyed reported that either they or one of their female colleagues had refrained from speaking out about discrimination for fear of damage to their careers.

With many women surveyed also expressing concerns about the lack of family-friendly working practices and reporting higher burnout levels, lower autonomy and lower psychological safety at work than their male counterparts, it’s clear that firms that allow gender bias and discrimination to go unchecked run the risk of losing talented female staff – or failing to attract them in the first place – and missing out on the  benefits of gender-diverse teams.

To disclose, or not to disclose? Disabled lawyers face a dilemma

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All too often an area of inclusion that can go ‘under the radar’, disability discrimination cases against law firms have increasingly been cropping up in the news and shining a spotlight on the struggles of disabled lawyers.

A series of studies have unearthed widespread bullying of disabled lawyers with research by Legally Disabled finding that more than half of disabled lawyers questioned claimed to have experienced ‘ill treatment’ such as bullying or discrimination in the workplace on the grounds of their disability.

The case of Kandice Farrow, who applied for a job at Foster Clay Law only to be rejected when she disclosed a disability, illustrates the very real dilemma that many people in the legal profession face around whether or not to disclose a disability and concerns around how any disclosure could affect their career prospects. It’s certainly the case that disability disclosure rates in the legal profession remain persistently low. While there has been a small increase from 4% in 2019, only 5% of lawyers report having a disability, compared with 14% of the wider UK working population, suggesting a reluctance to disclose by those with hidden disabilities and raising the possibility that a significant number of law professionals are failing to get the support to which they are entitled.

Employers should be aware that disclosure of a disability should not be a prerequisite for getting support. The successful action brought by paralegal Forida Kaiser, dismissed for sickness absence due to an undisclosed disability, illustrates the importance of not relying on disabled staff to disclose and being prepared to make adjustments that will enable them to fulfil their role, even in the absence of a disclosure of a disability.

In Kaiser’s case, the hearing found that the claimant did not have to use the word ‘disability’ in order for her employer to know that she had conditions that had a substantial adverse effect on her ability to carry out day to day activities, and indicated that the firm she worked for should have made the various reasonable adjustments she had requested, including changes to her desk set-up and allowing her to come in 30 minutes later to allow pain-relief medication to take effect.

Firms with a toxic culture struggle to hire and retain staff

It’s not just reputational risk and the financial risks from lawsuits and fines from the SRA that can pose a problem. In the battle for talent, law firms that allow non-inclusive cultures to flourish risk haemorrhaging valuable employees and losing them to their more inclusive competitors.

Firms can also find departing staff increasingly difficult to replace as word gets out about a toxic workplace. Research found that nearly three-quarters (73%) of employees in the legal sector would not accept a job at a firm known to have a bad working culture, while nearly half (49%) said they would be prepared to post a bad review online or warn others about taking a job at such a company.

Toxic workplace culture was found to be the biggest predictor of attrition during the first six months of the so-called ‘Great Resignation’ that followed in the wake of the Covid-19 pandemic, a clear indication that time is running out for employers who tolerate cultures that are disrespectful, non-inclusive or abusive.

The benefits of an inclusive culture

Diversity of thought in an organisation makes for more creative problem-solving. A firm with a diverse team will have an enhanced ability to approach complex legal problems from different angles and come up with innovative solutions, as well as being able to connect with a wider audience of potential clients.

Market competitiveness, too, can be enhanced by a diverse workforce, with law firms who embrace inclusive values and behaviours gaining a significant edge over their competitors by demonstrating a commitment to increasing diversity, equity and inclusion and social responsibility. It’s becoming increasingly clear, too, that inclusive cultures are a huge factor in talent attraction, allowing law firms to have their pick of a much wider and more diverse pool of legal talent.

A culture of inclusion also supports higher levels of job satisfaction and well-being, a key concern for high-pressure professions such as law which can see high rates of attrition and problems of burnout. Leaders with an understanding of individual needs and experiences and a culture that supports staff in achieving better work-life balance will be far better placed to ensure peak performance and productivity, not to mention being better able to survive in an uncertain economic climate.

Create an inclusive culture in your firm

Want to make sure that your law firm is hitting the headlines for all the right reasons? Contact us today to find out how our online DEI learning programmes can help improve your law firm’s diversity and inclusion mindset and create an inclusive workplace culture that enables your business to thrive.

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From personal feedback to intelligent analytics, Kandola+ offers all the equality, diversity and inclusion features your organisation needs for success.

  • Combat bias 
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  • Avoid reputational risk
  • Watch your business thrive

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