Opt In Project HE Powerpoint

Solving the Part-time Puzzle: 

Solving the Part-time Puzzle Heller Ehrman LLP The Missing Piece in the Legal Profession: Women at the Top May 31, 2006 Joan Williams and Linda Marks Center for WorkLife Law UC Hastings College of the Law

Overview: 

Overview Are women leaving because they want to stay home full time? Existing policies The business case for balanced hours Solving the Part-Time Puzzle www.pardc.org

Why do they leave?: 

Why do they leave? “It has nothing to do with the law firms. These women leave because they want to stay home with their kids.”

Many women cite workplace inflexibility : 

Many women cite workplace inflexibility One survey of high-powered “opt out” women Only 16% always wanted to be SAHM (Stone, 2004) Almost 1/3 cited workplace inflexibility as a major reason they quit Poor quality and lack of reduced hours Employers’ refusal to grant PT work Stigma “So I decided to quit, and this was a really, really big deal…because I never envisioned myself not working. I just felt like I would become a nobody if I quit. Well, I was sort of a nobody working, too. So it was sort of , ‘Which nobody do I want to be?’” www.pardc.org

Generational conflict: 

Generational conflict Gen-X and Gen-Y women Differ from baby boomer attorneys 45% of women lawyers listed work/life balance their #1 concern (Catalyst) Gen-X and Gen-Y men (Catalyst) Less willing to give up family life Less likely to give work/life balance as their reason for leaving (About not caring about making partner) “It’s like a pie-eating contest where the prize is more pie.” (Chanen, 2006) 46% of supervised lawyers would take less money if they could work less; 40% of supervising lawyers (Chanen)

Existing policies: 

Existing policies “We already took care of that. We have part-time.”

What firms are doing: 

What firms are doing Many have policies that aren’t usable and effective Stigma attached to part-time “The haircut” No guards against schedule creep Some have no policies Communication gap www.pardc.org

Stigma: 

Stigma “Since I returned, I get the work of a paralegal … ‘I had a baby, not a lobotomy.’” 75% – chances for partnership already affected (Boston Bar Association Survey) Barred from partnership track Other signs of stigma: interior offices attorneys taken off firm committees steady diet of dead-end assignments forgot to invite senior attorney to practice group retreat “[Going PT] is career suicide at my firm.” www.pardc.org

“The Haircut”: 

“The Haircut” Example: Work 80% time; get 65% pay Still common in some cities Potential for creating legal claims under Equal Pay Act and Title VII Federal district court held that paying a woman chemist who worked a 75% schedule a lower effective pay rate than a FT male chemist violated the EPA; PT status alone cannot justify a lower rate of pay (Lovell v BBNT Solutions) www.pardc.org

Schedule creep: 

Schedule creep If hours reduced aren’t replaced, end up working bigger percentage than paid for Effect on morale Are expectations reduced when schedule is? “Look-back provisions” Better than nothing – but if attorneys wanted the money … www.pardc.org

The Business Case: 

The Business Case

The business case for balanced hours : 

The business case for balanced hours Attracting and retaining the best attorneys Ensuring client satisfaction Improving business generation Controlling the high costs of attrition Dispelling the myth that firms lose money on part-timers Mismanaging a part-time program is a risk management issue www.pardc.org

Attracting and retaining: 

Attracting and retaining Nearly 50% of law-school graduates are women 95% of mothers work < 50 hrs/wk year-round (HWLJ) Many Gen-X and Gen-Y men also want shorter hours Non-stigmatized PT can tap rich lodes of legal talent www.pardc.org

Client satisfaction : 

Client satisfaction “Stability is extremely important. Outside lawyers who have an institutional memory are incredibly valuable to us.” (In-house counsel) “There is no question in my mind that outside attorneys who have balance in their lives bring a more well-rounded perspective and provide higher quality service to their clients.” (Lauri Shanahan, EVP, Chief Compliance Officer and GG, Gap, Inc.) www.pardc.org

Business generation : 

Business generation Clients starting to consider firm’s attrition rate and average billable hours when making hiring decision. “We have tried to look at how our outside counsel treat their young lawyers … including demands in terms of billing. These are all issues that we think ultimately have an impact on the services we receive.” (Linda Madrid, General Counsel, CarrAmerica) Corporations implementing diversity through their buying power Reputation in community improved Attorneys who leave firms may go to corporate counsel positions www.pardc.org

Attrition: departure-related costs: 

Attrition: departure-related costs Lost productivity of departing attorney Lost recruiting and training costs Lost skills, contacts, clients, institutional knowledge Client dissatisfaction – current and future ‘‘Firms losing associates is a big issue for us, and frankly it has caused us to move away from certain firms” Today’s lawyers are tomorrow’s clients Negative effects on morale www.pardc.org

Attrition: replacement-hire costs: 

Attrition: replacement-hire costs Interviewing time Recruiting expenses (headhunter fees; referral bonuses) Training costs Lost productivity due to Attorney inexperience with work or ER’s culture “The burden of educating new associates is aggravating, and turning new associates loose on business client can be a disaster.” www.pardc.org

Attrition costs add up : 

Attrition costs add up Often no profit until associates’ 4th year; by then 40% have left (NALP) One firm estimated $257,000 to replace one attorney Attrition costs worksheet In 2003, Deloitte saved $41.5 million In 2001, Ernst & Young saved $25 million (direct) $120 million (indirect) www.pardc.org

Dispelling the myth that firmslose money on part-timers: 

Dispelling the myth that firms lose money on part-timers Conventions for calculating overhead contain inaccurate assumptions “Often it is the internal accounting procedures that make PT look infeasible.” (Alison Hooker, Ernst & Young) Excess costs are minor: $10,000 rent, $1,000 malpractice (James Sandman, then Managing Partner, Arnold & Porter) Industry estimates: PTers generate $425,000 in revenue; $225,000 in costs Partner who generates less revenue but leverages associate time effectively may generate higher profits (David Maister, HBS) www.pardc.org

Mismanaging work/life is a risk management issue : 

Mismanaging work/life is a risk management issue Maternal wall lawsuits have increased 419% 67 verdicts or settlements over $100,000 Stigma associated with PT work tracks fact patterns of family responsibilities discrimination (FRD) cases Legal employers sued more than a dozen times with liability reaching $1.5 M The best defense is a quality, non-stigmatized balanced hours policy that allows PT attorneys to advance professionally www.pardc.org

Solving the Part-Time Puzzle: 

Solving the Part-Time Puzzle www.nalp.org

Solving the Part-Time Puzzle www.NALP.org: 

Solving the Part-Time Puzzle www.NALP.org Old-fashioned PT → “balanced hours” Begins with a needs assessment Implementation “Policies are important but they are not sufficient. They are only a starting point. Implementation is the key.” (James Sandman, then Arnold & Porter) www.pardc.org

Solving the Part-Time Puzzle www.NALP.org: 

Solving the Part-Time Puzzle www.NALP.org How to create momentum within the firm Conversation starters Benchmarking and monitoring Training Sample agendas for group meetings Sample letter announcing the policy www.pardc.org

Key elements ofa successful program : 

Key elements of a successful program Written policy Leadership from the top Key players Publicizing the policy Avoiding backlash Planning by the attorney Planning by the firm www.pardc.org

Principle of proportionality: 

Principle of proportionality Proportional pay Proportional benefits Proportional bonuses Proportional billable hours ratio Proportional advancement (as a floor) Enable PTers to make partner Have PT partners www.pardc.org

Best practices: 

Best practices Reduced schedule versus rigid schedule Wide variety: annualized hours; job sharing; unpaid time off during summer or downtimes Flexible in duration and % of standard schedule Can go from standard to balanced and back Periodic evaluations www.pardc.org

Best practices : 

Best practices Handling schedule creep: balanced hours coordinator No “My policy on part-time is no part-time.” Accountability: holding practice group leaders accountable for regretted losses Providing technology support www.pardc.org