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June 2004 - Motivation in law firms

What keeps you committed at work? Is it the pay or the job itself? Or has it something to do with your boss or your colleagues? A recent study by Capital Incentives and Motivation, a Chester-based incentives business which surveyed 2,000 people across the UK, found that "fair treatment" in the workplace and "having good relationships with colleagues" were regarded as the two most important factors in keeping people committed to their jobs. But the study also said that pay was moving up the league table of factors when compared with responses in previous years. It rose from fifth place last year to third place this time with "job security" close behind.

This suggests that although some issues retain their importance over time, the strength of other factors fluctuates, depending perhaps on economic circumstances. This year, for example, UK interest rates are creeping up once more, suggesting that finances are going to be under increasing pressure in some households. Financial pressures and a tight labour market tend to make employees risk averse. On the other hand, as confidence grows and companies begin to recruit again, we can expect the market to slacken as people begin to think about moving jobs. In this event, fears about job security would be likely to subside.

Other variables influencing the degrees of employee motivation include the age and career progress of respective employees. Young employees and those in mid-career are more likely to move than those approaching the end of their careers. Variables aside, there appear to be an enduring set of factors underpinning job commitment that have emerged time and again in successive studies over the past 80 years. The late Frederick Herzberg, a US psychologist and management professor, defined motivation factors such as recognition, personal responsibility and the scope for personal achievement. Other issues such as pay, working conditions and management policy he described as maintenance or "hygiene" factors. While the first set of qualities related to improved morale and aspirations, the second group could generate high levels of dissatisfaction if they were misapplied. Even a pay rise, he noted, could prove divisive if an employee regarded it as unfair when compared with others' treatment. The poor application of a merit system, therefore, could influence the sense of fair treatment and relations among colleagues regarded as prime factors in maintaining commitment.

Herzberg's theories suggest that those issues that tend to create demotivated and disillusioned workforces may be more significant than the idea of building motivation. So instead of trying to motivate employees, managers might do better to concentrate on maintaining the working conditions that keep people happy. As an illustration of the way staff relations can go awry, look how professional services firms have created dissatisfaction among their initially highly motivated young staff, trying to squeeze ever greater levels of productivity from people by concentrating on working hours.

A request two years ago by Clifford Chance, the law firm, for its New York associates to bill 2,420 hours a year, backfired on the firm when associates complained that the target would be unattainable unless they were to engage in "padding" their hours - an outlawed form of over-billing. The firm abandoned the target, but not before one associate had complained: "The management cares exceedingly about hours billed, but gives no thought to the quality of my work." Allen & Overy received a similar backlash last year when it asked its UK associates to work a minimum of 2,200 office hours a year - the equivalent of 10-hour days, assuming five weeks of paid holiday a year. The Young Solicitors' Group, a UK body that has campaigned strenuously against the long-hours culture of legal practices, said at the time: "If you are tied to your desk for your 10 hours of recordable time every day, how are you going to fit in the rest of your life?" The law firms are in a difficult position because billed hours equate directly with partner profitability and unless this can be maintained, there is a risk that the best partners might defect to more profitable firms.

A study undertaken among 12 law firms in the UK in 2003 by Getfeedback, a human resources and training consultant based in Henley-on-Thames, suggested that firms could improve their staff relations if more senior partners were prepared to spend more time on staff development, passing on expertise to their junior colleagues. While this could divert top-billing lawyers from their profitable client-facing work, it may be necessary to ensure a healthy throughput of talent in the long term. These issues illustrate the perennial difficulties with motivation. Although there have been plenty of studies establishing what employers need to do to maintain a committed workforce with staff recognition and job enrichment featuring strongly every time, few managers seem capable of creating the right conditions.

Perhaps this is because managers rarely have the time to reflect deeply enough on staff concerns. In a new book, A Bias for Action,* Heike Bruch and the late Sumantra Ghoshal identify four types of managerial behaviour from their research. The most dominant behaviour displayed by 40 per cent of managers they studied was a "frenzied" approach to work created by attempting to deal with numerous distracting tasks emerging every day. A similar observation was made many years ago by Henry Mintzberg, the Canadian management writer. Another common feature reported by the authors was procrastination, caused by a lack of energy and focus, displayed by 30 per cent of those studied. They found that a fifth of managers were detached from their work, appearing aloof and apathetic.

Only one in 10 of those in the research were purposeful in their approach, working calmly to get the job done. One of the biggest problems facing managers, say the authors, is what they call "unproductive busyness" - rushing between meetings, returning phone calls and checking e-mails, "stamping out fires" instead of attending to more pressing matters. Often this kind of busy behaviour, they write, can lead to what they call "grasshopping" where some managers get involved in several different projects at any one time, with little sense of priority, simply because they find it difficult to say "no". When you contrast this "busyness" with law firms' obsession with recording billed hours you can discern a common theme of quantity taking precedence over quality.

Professors Bruch and Ghoshal say that purposeful managers must possess the willpower and must have the freedom of choice to resist distractions so that they can first identify, then pursue, their most important work.

* A Bias for Action , by Heike Bruch and Sumantra Ghoshal, is published by Harvard Business School Press, price Dollars 29.95.

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