The demanding environment of the legal sector can be a breeding ground for stress. Long hours, demanding clients, and high-stakes cases take a toll on mental wellbeing. However, the consequences of ignoring this issue go far beyond employee health. Stress in the workplace is a major source of errors and omissions, leading to increased risk of professional indemnity claims and financial loss for firms.
By taking steps to manage stress and prioritise employee wellbeing, firms can not only create a happier and healthier workforce but also improve their bottom line.
High levels of stress in the legal sector
Work-related stress, depression or anxiety is defined as a harmful reaction people have to undue pressures and demands placed on them at work.
Unfortunately, workplace stress is a common feature of the legal sector. According to a report by legal software firm Legatics and YouGov (opens a new window), 92% of lawyers experience stress or burnout because of their job – with over a quarter feeling it daily. Similarly, almost two-thirds of lawyers feel that their job has negatively impacted both their mental and physical health.
There are various reasons why lawyers are stressed at work. Working environments can be high-pressure, with long hours and large workloads. Others may struggle from a lack of job satisfaction, particularly given the large volume of administrative tasks that legal work typically demands. Poor work-life balance, lack of recognition and inadequate support are all sources of potential stress.
What’s more, evidence shows the workforce has become more stressed in recent years. Much of this is down to the COVID-19 pandemic, which saw rates of self-reported workplace stress spike. But even now, stress levels at work are still significantly higher than before the pandemic began (opens a new window).
Growing scrutiny of workplace stress
Given the evidence, law firms are coming under increasing scrutiny around how they manage and mitigate stress in the workplace.
In May 2023, the Solicitors Regulation Authority (SRA) issued updated guidance on health and wellbeing in the workplace (opens a new window), after complaints that some firms had an unsupportive, bullying or toxic working environment and culture. The SRA acknowledged that such environments could significantly impact employee wellbeing and mental health.
The SRA has said that it will take regulatory action against firms where it deems there to have been a serious regulatory failure. This could apply in situations where the work environment does not support the delivery of appropriate outcomes and services to clients. Or where it creates a culture in which unethical behaviour can flourish or where staff are persistently unable to raise concerns or have issues addressed.
Insurers are also paying close attention to how law firms handle workplace stress. As above, firms who fail to handle workplace stress could face potential investigation and regulatory fines. Insurers may also view stressed employees as more likely to commit errors in their work, increasing their exposure to negligence and related claims.
Managing stress to reduce risks
By prioritising employee mental health, legal firms can create a safer and more productive work environment. This translates to several benefits:
Reduced risk of claims: addressing stress can significantly reduce the risk of errors, missed red flags, and communication breakdowns, leading to fewer professional indemnity insurance (PII) claims and potentially lower insurance premiums.
Improved client service: a happy and healthy workforce is a productive one. Mentally healthy employees are better able to focus, manage complex tasks effectively, and provide superior legal representation to clients.
Enhanced employee retention: high turnover rates are expensive for firms. Investing in mental health can create a more positive work environment, leading to increased employee satisfaction and retention. Having a stable workforce can also help to eliminate continuity issues and minimise project disruption
Key strategies to manage workplace stress include:
Establish a clear policy on stress, and physical and mental health
Give employees support in their day-to-day work
Ensure workloads are manageable (e.g. by dividing up work, or investing in new technologies to drive efficiencies)
Provide a safe environment for people to raise concerns, and address them promptly
Train managers to recognise the signs and symptoms of stress, and to manage conflict within teams
Encourage employees to take regular breaks and make use of their holiday
By putting together a detailed presentation for insurers ahead of their insurance renewal, firms can demonstrate that they understand the impacts of stress in the workplace. They should also provide evidence of any action taken to manage stress and its impact on employee retention.
A comprehensive approach to wellbeing
Not all workplace stress is work-related. To ensure employees are adequately supported to manage stress, firms may consider investing in comprehensive employee benefit packages (opens a new window). These typically provide mental health support via an Employee Assistance Programme (EAP), often at no cost to employees.
An EAP can be a vital resource for employees to use if feeling overwhelmed and stressed. Access to counselling services can also help and offers support a cross a broad range of topics.
Other benefits that could help manage stress include:
Salary exchange – in return for cycle-to-work schemes, season ticket loans, and increased employer pension contributions
Flexible working – reviewing working patterns may save employees money and valuable time, helping to relieve stress
Buy/sell annual leave – this can give employees more regular breaks to reduce burnout, or additional salary
Firms should ensure all benefits are accessible and visible to employees, with regular and easy to understand communication. This will ensure help can reach those in need.
Contact us (opens a new window) for more information, or visit our People Solutions (opens a new window) page.
