The role of ALSP in the diversification efforts of the legal industry


As we all know, the legal industry has long been faced with problems of diversity and inclusion, and the legal department is still working hard to improve the diversity of external lawyers.

However, the legal department can go a long way in solving these difficult problems in its recruitment decisions.

Today, the legal department has only two options-the days of keeping the work in-house or sending it out of the law firm are gone.

Nowadays, the legal department has more choices and can seek alternative legal service providers (ALSP), especially temporary lawyer providers.

ALSP Character

Diversity in the legal profession Become center stage When Coca-Cola General Counsel Bradley Gayton (Bradley Gayton) Criticize “highly unproductive” industry efforts Achieve diversity and say that kindness is no longer enough.

Coca-Cola Law Firm Must work now At least 30% of new matters are handled by different lawyers, otherwise the lawyer’s fees may be reduced or they may be completely removed from the roster.

This is just the latest series of initiatives aimed at encouraging internal legal departments to promote change by making decisions while retaining external legal services to promote change and inclusiveness.

In the past four years Diversity Lab Mansfield Law Has been working hard to close the gender gap in the industry, 117 participating companies Sign in Mansfield Rule 4.0.Similar rules now exist Medium-sized enterprise with law Department. There are many other diversity initiatives in the corporate legal community.

However, the legal department’s actions against external lawyers are only one of the difficulties.

That’s because the law firm In terms of providing legal services, there is less unilateral control over the landscape.As of the end of 2019, ALSP’s legal department had a turnover of $13.9 billion market shareAccording to Thomson Reuters (Thomson Reuters) data, an increase of 3.2 billion US dollars over the previous two years 2021 Other Legal Service Provider Report.The report also shows Today, 71% of companies use ALSP.

This means that ALSP is ready to play an important role in the diversity and inclusion of the legal industry.More and more legal departments today Track the performance of its ALSP in Terms for hiring, mentoring and promoting diverse talents.The legal department can and really should, like hiring a law firm, when hiring ALSP with the same emphasis on diversity.

In fact, the legal department can be said to have Stronger than ever Recruitment decisions affect the diversity of the industry. In addition to the traditional internal/law firm dichotomy, there are other options, which open the door to choosing legal service providers that prioritize diversity.

Legal technology also plays an important role in helping the legal department to strengthen diversified work.

From Technology platform Designed to help organizations achieve greater diversity, inclusiveness and fairness in their teams, thereby Artificial intelligence tools In order to help users define and measure the prejudice of building a more diverse team, innovation has begun to make substantial progress in diversification.

A consortium composed of ALSP, legal departments and law firms even Fired A kind Data analysis dashboard Help organizations monitor non-financial intelligence, including diversity indicators.

Authorized GC

If more diversity and inclusiveness are to be achieved, the legal department needs to expand its horizons beyond law firms and seek legal service providers who work together to solve these problems in all aspects.

By now, most people know the benefits that ALSP can provide in the cost saving and efficiency sector, but they are more important.

When you seek diverse legal representation, ALSP can have a significant impact.

For example, in 2020, Paragon Legal hired more than 100 lawyers for clients. More than 60% of these lawyers are women, and more than 40% are lawyers from ethnic minority groups.

At Paragon Legal, we are proud of our diversity, but we also know that there is still a lot of work to be done.

By expanding the range of people to choose from, rather than hiring a law firm or keeping things inside the company, the legal department not only has the power to make better business decisions, but it also provides new ways to truly change the diversity of the industry.

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