{"id":9989,"date":"2023-09-25T11:22:14","date_gmt":"2023-09-25T00:22:14","guid":{"rendered":"https:\/\/insight.thomsonreuters.com.au\/legal\/?p=9989"},"modified":"2023-12-18T16:56:08","modified_gmt":"2023-12-18T05:56:08","slug":"extreme-stress-linked-to-high-turnover-of-in-house-counsel-at-asx100-companies","status":"publish","type":"post","link":"https:\/\/insight.thomsonreuters.com.au\/legal\/posts\/extreme-stress-linked-to-high-turnover-of-in-house-counsel-at-asx100-companies","title":{"rendered":"\u2018Extreme\u2019 stress linked to high turnover of in-house counsel at ASX100 companies"},"content":{"rendered":"\n<h4 class=\"wp-block-heading\">In-house counsel and private practice lawyers are under \u201cextreme&#8221; pressure, a panel of experts in Sydney concluded last month. Continued \u201cunsustainable workloads\u201d are significantly affecting the wellbeing, productivity and retention of highly skilled lawyers.<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Over the past 12 months, more than 20 of the 100 highest-ranking corporate counsel in ASX100 companies changed roles. That\u2019s according to Chris Drummer, Director of Policy and Chief Legal Officer Engagement for Australia and Asia Pacific at the Association of Corporate Counsel (ACC). He told delegates attending a <a href=\"https:\/\/www.thomsonreuters.com.au\/en-au\/events\/tr-inform-aug23.html\">Thomson Reuters Inform legal leaders masterclass<\/a> that stress and burnout could be key drivers for this high turnover.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cGeneral counsel and chief legal officers at ASX100 companies are under extreme pressure due to the increased risks of their roles,\u201d he said. These risks include potential prosecution, disqualification and financial penalties for failing to prevent misconduct within their organisations. \u201cIf you have the normal stressors of the job, but then think when you go home at night \u2018I might be prosecuted by ASIC for all the wonderful work that I&#8217;m doing\u2019 it might put a certain flavour on a certain idea and extra stressors on you,\u201d said Drummer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These findings are backed up by a <a href=\"https:\/\/www2.deloitte.com\/us\/en\/insights\/topics\/leadership\/employee-wellness-in-the-corporate-workplace.html\" rel=\"noopener\" target=\"_blank\">2022 Deloitte market survey<\/a> of C-suite leaders in the US, UK, Canada and Australia. That survey identified that 70% were seriously considering quitting their job for another that better supported their wellbeing. In addition, around two-fifths of C-suite leaders said they were exhausted, stressed or overwhelmed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Corporate counsel at financial services companies in Australia are dealing with multifaceted levels of \u201cextreme pressure\u201d. These include the Hayne Royal Commission\u2019s inquiries into suspected misconduct and AUSTRAC\u2019s heightened scrutiny of anti-money laundering protocols. \u201cRegulators are really honing in on companies, but the brunt of some of this falls on the in-house lawyers and their duties and responsibilities. Obviously that will be another stressor,\u201d said Drummer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, in-house counsel are under \u201cenormous diverse pressure\u201d to give legal and commercial advice on many fronts, Drummer said. Business executives are increasingly asking corporate counsel for advice on legal, HR, corporate affairs, risk and compliance issues \u2014 dangerously blurring the lines of legal professional privilege (LPP). With a two-year governmental review of LPP underway, in-house counsel may soon face greater scrutiny of their involvement in key business decisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The widening role of in-house counsel creates its own stressors. \u201cThere\u2019s a real tension around our simultaneous and quite incompatible roles as the facilitator and also potentially the policeman. There\u2019s a lot of ambiguity in balancing both of those accountabilities at the same time, and that can be particularly stressful,\u201d said David Field, Chief Legal Counsel and Director, People and Finance, at Canon Oceania.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>Managing stressors and risks in modern legal workplaces<\/b><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Another challenge facing General Counsel and law firm leaders is how to ensure the wellbeing of team members who work remotely long term. A key concern is limited managerial oversight of how well these lawyers are handling their heavy workloads. Another issue is limited visibility of how well recent hires in different locations are adapting to their new roles and responsibilities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Insufficient reporting of mental wellbeing challenges in the workplace is a major challenge for the legal profession. A <a href=\"https:\/\/www.ibanet.org\/document?id=IBA-report-Mental-Wellbeing-in-the-Legal-Profession-A-Global-Study\" rel=\"noopener\" target=\"_blank\">global survey<\/a> by the International Bar Association identified that 41% of lawyers would not discuss mental wellbeing concerns with their employer for fear that it may have a negative impact on their career. In addition, 35% said their work has a \u201cnegative&#8221; or \u201cextremely negative\u201d impact on their wellbeing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Excessive and prolonged stress can have a major knock-on effect on the business, Georgia Bolton, Associate Facilitator at Positive Group, told delegates as she presented at the <a href=\"https:\/\/www.thomsonreuters.com.au\/en-au\/events\/tr-inform-aug23.html\" rel=\"noopener\" target=\"_blank\">masterclass<\/a>. \u201cDecision making and productivity are directly impacted,\u201d she said in a separate masterclass session on workplace wellbeing. \u201cIt can also reduce motivation, engagement and focus.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bolton noted that, to help manage these issues, businesses should equip all leaders and staff with the key psychological tools to proactively manage their own wellbeing. These include emotional and attentional regulation, cognitive flexibility and social support. \u201cWhat we use our minds for matters,\u201d she said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The World Health Organisation recently <a href=\"https:\/\/www.who.int\/news-room\/fact-sheets\/detail\/mental-health-at-work\" rel=\"noopener\" target=\"_blank\">estimated<\/a> that 12 billion working days are lost globally each year to anxiety and depression, creating an annual productivity cost of US$1 trillion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Melinda Upton, CEO of Positive Group, has found that organisational culture on wellbeing can make or break a business. \u201cIf you get it right, you can increase productivity, retention and growth. If you don&#8217;t get it right and you have individuals who are really struggling, the problem becomes contagious,\u201d she said. \u201cHealthy workplaces are good for business. They reduce the costs associated with absenteeism and attracting and retaining talent.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Field noted that, as Chief Legal Counsel, it is a \u201cmassive\u201d and \u201cnever-ending\u201d task to shape organisational culture and manage potential misfeasance risks \u2014 particularly when there is ongoing staff turnover. \u201cIt\u2019s very rewarding but, if it\u2019s not working, it\u2019s also incredibly stressful,\u201d he said. The question of \u201cwhat don\u2019t I know?&#8221; is one that plagues him. Compounding the problem is that in-house lawyers are constantly having to triage their heavy workloads.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cBecause the job has more work than you could possibly do, much of it involves identifying what you&#8217;re <i>not<\/i> going to do. And that can be particularly stressful for junior lawyers because they&#8217;re very diligent,\u201d said Field. \u201cMuch of the growth trajectory of an in-house legal career involves getting more comfortable with one\u2019s judgment in relation to \u2018which rocks am I not going to pick up and look under?\u2019 and \u2018that one is probably not going to kill us, I&#8217;m not going to worry about that one\u2019.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Aligning these value judgements with organisational risk strategies is key. \u201cI cannot insulate the company from risk. All I can do is empower it to manage risk, and I must make sure that I highlight if it has inadequately resourced risks,\u201d said Field.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For Upton, who is also Chair of the Minds Count Foundation, it is vital that General Counsel have a place at the executive table. This can enable them to speak up on resourcing decisions and better effect organisational change. &#8220;They will be better able influence what is being prioritised by the business,\u201d she said.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>The impact of legal technology and generative AI on lawyers\u2019 wellbeing<\/b><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">An ongoing priority for legal leaders is maximising value and minimising risks from limited resources. Technological tools such as legal research platforms are proving invaluable in boosting performance and supporting staff wellbeing. \u201cTechnology really does aid in productivity and in managing work overloads,\u201d commented Michael Horton, VP of Client Relationship Management in Asia and Emerging Markets for Thomson Reuters. General Counsel and law firm leaders are also using legal collaboration tools to better manage team workloads. \u201cIt provides an empirical way of seeing if one person has too much work and creates an alert process,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The recent rise of generative artificial intelligence (AI) has raised questions over the value of automating legal work through dedicated tools. A key concern is the high volume of content that some generative AI tools currently create in response to a query. Each piece of generated content then needs to be checked carefully for fabricated data, incongruous citations and incoherent logic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI absolutely value the potential for AI to remove drudgery from people&#8217;s lives, but there is a real risk that it poses,\u201d commented Field. \u201cWe have accountabilities to try and guide our lawyers towards doing more meaningful and value-generating work in general \u2014 and avoiding generating lots of free crap through AI.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another challenge facing private practice and in-house lawyers is that clients are increasingly expecting generative AI to deliver time and cost savings in legal work. This is putting additional pressure on overstretched lawyers, who still need to safeguard the quality and value of their legal advice. \u201cWe need to ensure that we&#8217;re still solving problems for clients, not exposing the business to further risks through AI,\u201d commented Upton.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A disparity between how junior and senior lawyers perceive AI is an issue that legal industry leaders will need to address in the coming years. \u201cJunior lawyers are anticipating that they might be replaced by AI, while more senior lawyers are seeing how it could be embraced,\u201d commented Jane Lewis, Vice President of Sales in Asia and Emerging Markets at Thomson Reuters. \u201cWe need to work in a way that is smart, sustainable and purposeful.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Organisations that invest in staff wellbeing can boost productivity and financial results. Are you ready to learn how to develop successful workplace wellbeing? Download <a href=\"https:\/\/insight.thomsonreuters.com.au\/legal\/resources\/resource\/workplace-wellbeing-lessons-from-the-legal-leaders-masterclass\" target=\"_blank\" rel=\"noopener\">The Wellbeing Revolution\u2019<\/a> now, or watch the masterclass and panel discussion on-demand <a href=\"https:\/\/www.thomsonreuters.com.au\/en-au\/events\/tr-inform-aug23.html\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/pixel.welcomesoftware.com\/px.gif?key=YXJ0aWNsZT1lZDJhNTI3MjU2YWExMWVlYmNiMTkyYTYyZjE3NDIyZQ==\" alt=\"\"\/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>In-house counsel and private practice lawyers are under \u201cextreme&#8221; pressure, a panel of experts in Sydney concluded last month. Continued \u201cunsustainable workloads\u201d are significantly affecting the wellbeing, productivity and retention&hellip;<\/p>\n","protected":false},"author":2,"featured_media":9988,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1769,1448,1925,1721],"tags":[251,272,306,323,1746,1941,568,1938],"insight_job_role":[1452,1913,1560,1793,1476,595,598,1573],"insight_practice_area":[],"class_list":["entry","author-legaladmin","post-9989","post","type-post","status-publish","format-standard","has-post-thumbnail","category-esg-environment-social-governance","category-leadership-strategy","category-legal-industry","category-talent-development","tag-general-counsel","tag-in-house-legal-departments","tag-law-firm","tag-leadership","tag-mental-health-and-wellbeing","tag-trinform","tag-workplace-stress","tag-workplace-wellbeing","insight_job_role-chief-executive-officer","insight_job_role-chief-financial-officer","insight_job_role-chief-operations-officer","insight_job_role-chief-people-officer","insight_job_role-chief-risk-officer","insight_job_role-general-counsel","insight_job_role-in-house-lawyer","insight_job_role-lawyer","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>\u2018Extreme\u2019 stress linked to high turnover of in-house counsel at ASX100 companies<\/title>\n<meta name=\"description\" content=\"In-house counsel and private practice lawyers are under \u201cextreme&quot; pressure, a panel of experts in Sydney concluded last month. 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