We’ve moved from DEI as a ‘nice to have’ to a business, ethical, and strategic imperative. Though there are organisations that continue to treat DEI as a box-ticking exercise, this much is certain: ignoring DEI will have a very real impact on your reputation, client retention, talent acquisition, and regulatory compliance. Here’s why DEI is top of mind for law firms today:
Clients are increasingly seeking more than just legal expertise when selecting their law firms. Most corporate clients, particularly global firms with commitments to DEI, have come to expect their law firms to share the same values. For instance, corporations like Microsoft and Accenture consider the diversity performance of law firms. Firms that incorporate DEI genuinely build trust and credibility, while those that do not miss out on being included on profitable client panels.
Values and purpose drive today’s workforce. Millennial and Gen Z attorneys are increasingly demanding to work for an organisation where diversity and inclusion are not just words in an annual report. Firms without robust DEI policies will lose top talent to competitors that demonstrate inclusivity and equity in career advancement opportunities. According to the statistics, 47% of lawyers are women, but they fill only 38% of leadership positions, confirming one of the most alarming disparities: the need for firms to develop fairer paths to partnership. Many young lawyers say that whether they stay or leave is often decided by seeing someone who looks like them in leadership positions.
In 2025, the regulatory spotlight around DEI is shining much brighter in the UK. The Solicitors Regulation Authority (SRA) continues to emphasise the importance of diversity and inclusion within law firms, requiring them to publish diversity data and demonstrate compliance with equality legislation. At the same time, the Equality and Human Rights Commission (EHRC) is intensifying its scrutiny of employers to ensure compliance with the Equality Act 2010 and prevent workplace discrimination. With a regulatory landscape that is becoming increasingly complex, only preemptive and strategic compliance can effectively navigate these requirements. Unprepared firms risk formal investigations, reputational damage, or legal challenges, all of which undermine organisational cohesion and public trust.
In addition to compliance and reputation, there is also clear economic value to DEI. McKinsey research has revealed that companies in the top quartile for gender and ethnic diversity are up to 39% more likely to outperform their competitors financially. Benefits for law firms. In the legal industry, research indicates that diversity on teams fosters more dynamic problem-solving, innovation, and client alignment. Moreover, companies that fund non-revenue professionals, such as diversity leads, innovation officers, and wellbeing experts, are experiencing operational performance and cultural enhancements that impact bottom-line profits.
A few companies have seen their DEI work scaled back in the face of political pushback. However, some firms, including London-based Simmons & Simmons, have intensified their diversity efforts, publicly endorsing social mobility and inclusive promotion policies. During such periods of pushback, law firms need principled leadership that is unambiguous about their position on DEI. That means forging alliances with sympathetic state AGs, keeping open lines of internal communication to minimise confusion or panic among workers and, when possible, holding the line on promises made to clients and staff.
Genuine DEI involvement will require law firms to establish employee resource groups (ERGs), offer bias training, and implement non-biased policies that are more than mere window dressing. Leadership buy-in is key – company leaders should be talking openly about DEI, allocating resources, and practicing what they preach, especially as talent is already closely watching leadership actions. Corporations will also have to measure and disclose their DEI objectives. That will require reporting on diverse hiring, monitoring promotion equity, and surveying staff on inclusion, so real progress is made.
And then there’s preparation for regulatory scrutiny, which is also essential. All DEI initiatives should be well-documented with reasons that are consistent with legal frameworks, the law firm adds. It is a risk-mitigating step for a company to review these programs on a routine basis with legal counsel. Lastly, communicating DEI strategies both internally and externally is key. Creating and distributing client and team roadmaps and progress reports demonstrates an organisation’s commitment to its values and helps in maintaining trust.
In 2025, DEI is not even something HR manages – it is a core ingredient of law firm success. Companies that aggressively embed, track, and protect their DEI efforts will attract the best talent, retain loyal clients, outperform competitors, and insulate themselves from potential regulatory or political backlash. At the same time, companies that do not prioritise DEI open themselves up to possible damage to their reputation, a drain on talent, the loss of clients, and legal battles. This is the time to invest in DEI with clarity, strategy, and authenticity.
Copyright 2022 © Owen Reed Ltd.
