The impact of millennials, individuals born 1981 to 1996—and their values and preferences on work culture—has been undeniable. Gen Z, comprised of individuals born 1997 to 2012, is not far behind; the oldest Gen Z-er is now twenty-six and entering the legal work force.
Millennial attorneys have consistently demonstrated they desire flexible and collaborative work environments, opportunities for personal development, and a sense of community and purpose. Similarly, Gen Z employees want to see flexible work arrangements, work/life balance, and a work environment that reflects a commitment to global citizenship. Chief among the shared values between the two generations is the promotion of diversity, equity, and inclusion (DE&I), which has now become a necessary call to action across industries. The benefits for organizations that increase diversity are numerous and well-documented. They include, for example, higher employee satisfaction, lower attrition, greater diversity of skill, and reputational advantages.
The legal profession has historically lagged other industries when it comes to diversity. According to the American Lawyer’s 2021 Diversity Scorecard, only 18.6 percent of all attorneys were minorities in 2021.
The 2021 Diversity Scorecard may reflect that, to date, law firms have largely focused their diversity efforts on race, gender, and/or sexuality. While this work is vitally important—particularly considering how much progress along these lines remains to be made to diversify the legal profession—many law firms fall into the trap of limiting their initiatives to only those aspects of diversity and do not consider diversity in other forms. According to an annual survey conducted by Deloitte, millennials more broadly define diversity to encompass other factors as well and value an inclusive environment that invites a variety of ideas, perspectives, and life experiences.
Deloitte’s latest survey of both millennials and Gen Z-ers shows diversity is still top of mind for both millennial and Gen Z employees. Nearly 40 percent of surveyed individuals had rejected a job or assignment because it did not align with their values. Indeed, younger attorneys are no longer simply looking for a diverse law firm that aligns with their values—they are expecting one, and they are unafraid to vote with their feet. In 2021, Millennials and Gen-Zers drove what has been dubbed the “Great Resignation,” in which a record number of employees quit their jobs. The Great Resignation is showing no signs of abating, with 40 percent of Gen Z and 25 percent of millennials indicating they intend to leave their current jobs within two years (a third of whom are willing to do so without another job lined up). What has proven effective in retaining employees, however, is a commitment to DEI: millennial and Gen Z employees are much more likely to remain with their employers for at least five years if they are satisfied with their employers’ efforts to create a diverse and inclusive environment.
Just in time, it appears change is on the horizon. American Lawyer’s latest Diversity Scorecard indicates last year, large firms made the largest year-to-year improvement in diversity since 2001: the percentage of minority attorneys rose to 20.2 percent, over a one percent increase from the previous year and an almost two-and-a-half percent increase from 2020. Significantly, the American Lawyer changed its methodology in providing its firm rankings such that, for the first time, a firm’s score would be negatively affected if it lacked representation in any ethnic category.
Although any progress is cause for celebration, considerable work remains. The diversity in law firms still does not match the diverse demographics of law students. In contrast to the 20.2 percent of minority attorneys in law firms, in 2022, the entering class of law students was the most diverse to date, with 36.6 percent identifying as people of color. Similarly, the California State Bar also reports California’s attorneys do not reflect the state’s diversity, with Latin-x attorneys being particularly underrepresented. This may be because many firms still adopt a narrow focus on diversity, or worse, have no focus at all.
Firms that do not take DEI seriously do so at their own peril. The impact of younger attorneys on the workforce is growing and upcoming leaders are carving a new path. Law firms would be well-served by leading the charge.
Shilpa Coorg is a litigation attorney at DTO Law. To learn more about the firm, visit DTOLaw.com.
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