The latest analysis from Leopard Solutions data points to the direct correlation of ethnic and gender diversity of attorney headcount and retention to top firm rankings.
Legal Intelligence provider Leopard Solutions created Leopard Law Firm Index (LLFI) to help the legal industry benchmark law firms across the US. The ranking metrics include industry success, profitability, viability, growth, diversity makeup, and potential opportunity.
"Our data indicates that law firms with a higher percentage of women partners perform very well on our index; we've determined that equality at the top has contributed to the LLFI top firms' success," said Laura Leopard, CEO and Founder of Leopard Solutions. The LLFI ranking will include the percentage of women partners of a firm as a key indicator for firm health.
Sexism Persists in the Legal Industry
Women in law experience sexism – in law, at work, and in the courtroom. From judges, clerks, and male counterparts, women cited that they often receive subtle or direct remarks that undermine their positions, whether purposely or unknowingly.
Outside of their law firms, they also experience it in the courtroom. It is common. The need to address gender equality in the legal industry is imminent. Approximately 70% of female attorneys surveyed by the Defense Research Institute also reported having experienced gender bias in the courtrooms. Sexist remarks, sexist taunts, and unfair treatment by the bench all combined into a toxic stew. The Department of Justice found overwhelming evidence of gender bias in the courts, denying women equal justice, treatment, and opportunity. Hence, the need for firms, especially the big law firms, to focus on gender equality remains. The focus on women and their lack of advancement into partnership in the Big Law is still an industrywide concern. Leopard Solutions have found the deck stacked against them, and the data shows it. Many of the top 20 law firms have women's initiatives and other DEI (Diversity, Equality & Inclusivity) programs.
Dynamic Metrics to Keep Track of Firm Progress
The Leopard Law Firm Index provides a unique insight into over five thousand firms that the Leopard Solutions database tracks formulated to give an accurate picture of firm stability by using data that is not 'gameable' by the players in the industry. The index score for each firm varies based on its history, capabilities, and aspirations. Key measurement points include:
• Growth or decline in attorney headcount
• Average attorney tenure
• Increases or decreases in revenue per lawyer (RPL) over five years
• Relative success in lateral recruiting and general retention (partner and associates)
• Relative success in recruiting and retaining entry-level attorneys
• Promotions to partner
• Ethnic diversity within the firm
• Percentage of women partners
Studies have shown that men are evaluated based on their potential across all industries. In contrast, women are evaluated based on performance. This unequal standard often leads to a highly skewed management structure in most workplaces.
The industry still has a lot of work to do to reach gender equality. According to the recent Leopard Solutions State of the Legal Industry Report, there was only a one percentage point gain in 2022 for ethnically diverse and female partners at the top 200 law firms. While it was an increase, women currently only represent 39% of associates, partners, and counsels in the top 200.
At a high-level view of the hiring pattern over time for gender diversity associates, lateral and entry-level, there are many more laterals on the younger side than the older side. These are laterals by JD (Juris Doctor) year from 2022 divided by gender. Looking more closely into the hiring numbers, women made a strong showing in the age groups from 2019, but men outpaced the women for 2020 through 2022. Many of these women attorneys existed in the industry mid-career for many reasons. In 2021, 48% of the women in the top law firms exited the industry and only 29% of them returned in 2022.
[source: Leopard Solutions]
Still, the lack of a clear partnership path is the top reason for their exit. There is a more in-depth analysis of how top firms can combat gender inequality in the Challenges of Women in Big Law report that Leopard Solutions is issuing this month.
Leopard Solutions has been monitoring the gender makeup of law firms for the past two decades. The data point of the percentage of women partners will be added as a critical indicator of the law firm's health starting April 2023. Real-time data analysis that looks beyond financials has never been more critical, especially in volatile economic times. Law firms can better measure their actual performance, diagnose potential issues threatening the health of their organization, and proactively plan their recruiting and growth strategies. At the same time, in-house counsel can get a more accurate sense of how law firms perform today and identify and engage the right law firm for the legal services they need.
Leopard Solutions recently announced its top 200 law firms in the 2022 list. For the complete list and more about the Leopard Law Firm Index, read here. The Leopard Law Firm Index gives each firm a score from 0 to 500, with 500 being the highest possible score. There are four different statuses in the scoring system:
• 0 to 124 – Poor
• 125 to 249 – Fair
• 250 to 374 – Good
• 375 to 500 – Very Good
Leopard Solutions currently tracks over 5,400 law firms, with the Leopard Law Firm Index ranking over 4,000 firms. Its customers can access and run the firm index report through the Leopard Business Intelligence (BI) platform for more in-depth analysis and comparison of specific firms' rankings, which is updated dynamically as the data is updated twice monthly. For more information, go to: https://www.leopardsolutions.com/index.php/leopard-law-firm-index-list/
