THE BUSINESS CASE FOR RACE IN THE LEGAL PROFESSION

In this age of corporate social responsibility and globalisation, clients expect their lawyers’ profile to reflect society. They demand a credible service that is sensitive and responsive to cultural and racial diversity.

Moreover, you could be missing out on talent and losing the added value that ethnic minority staff can bring.

The 64 Million Dollar Question!

Can your organisation afford to be left behind on race?

If “Yes”, read no further and take the consequences for quality and appropriateness of service, limited potential markets and talent pool, retention problems and the bottom line…

Changing Demographics

There are 4.6 million ethnic minorities in the UK, equivalent to 7.9% of the population (2001 census). The indications are that this figure is set to double over the next 25 years and it currently stands at just over 8%. 

By 2011, ethnic minorities of working age will account for half the growth in Britain’s working age population. Put another way, just 20% of the UK workforce will be white, able-bodied men. Changing demographics mean that ethnic minorities have a younger age profile, with nearly half under 25, compared with one third of the white population.

• Over half, or 53% of the 4.6 million are concentrated in Greater London and the South East. Cities like London, Birmingham and Leicester have an ethnic profile of 30% and growing! And in certain London boroughs like Brent, the ethnic profile reaches 50%. Significant numbers also live in Yorkshire & Humberside, and the North West & Merseyside.

No Room for Complacency in the Legal Profession

While current percentages of solicitors and barristers do reflect the national statistics for the ethnic minority population, there is no room for complacency in a very traditional profession where limited career progression and under-representation at the top still need to be addressed.  Also, firms are increasingly under pressure from clients to prove their diversity credentials.

Currently 9% of practising solicitors and 11% of barristers are from ethnic minority groups – up from 7.9% and 9% respectively in 2004. The figures for the judiciary are 6.9%, including 3.4% of judges in the courts.

• 26% of law students and 19% of trainees come from ethnic minority backgrounds.
• However, just 23% of ethnic minority solicitors are partners in their firms, compared with 39% of their white counterparts. These statistics as the Diversity League Table 2006 shows is considerably lower in the top 100 law firms.

A Talent Pool Going to Waste 

• Studies show that overall, suitably qualified ethnic minorities are two to three times more likely to be unemployed than their white counterparts and this is in spite of their over-representation in the education system including higher education.
• Ethnic minority lawyers are more likely to find work in smaller law firms as opposed to the larger City firms that have traditionally favoured Oxford and Cambridge graduates.
• The College of Law, the largest providers of legal education in England and Wales confirmed that black and minority ethnic LPC and BVC students are 50% less likely to obtain training contracts and pupillages, compared to their white counterparts.

A Wider Customer Base for Competitive Advantage

As everyone needs to use legal services, the legal profession potentially has access to some 4.6 million ethnic minority customers!  

• Ethnic minorities now own one in ten UK businesses overall, and 17% of SME businesses in London.
• Globalisation has brought fierce competition for these new customer groups at home, as well as abroad. According to the Bank of England, estimated earnings for UK ethnic minority consumers in 1997 came in at £15 billion after tax and contributed significantly to the gross domestic product. Other estimates indicate these earnings may now be in the region of £156 billion.
• Other sectors including Finance, Telecoms, Retail, Manufacturing & Engineering have woken up to the competitive advantage they can and have achieved by diversifying their recruitment and selection processes to get the best talent, by developing their existing ethnic minority staff where they find under-representation, and by accessing new markets.

Retention of Best Staff and Other Members

Other benefits are retention savings from being able to motivate and keep talented staff, tenants and other members whatever their ethnic origin.

Legal Compliance  

Last but not least, especially in the legal profession - companies will also avoid expensive litigation and stay ahead of new legislation.