Talent Retention Through Value Creation : A Case Study of a British Law Firm

An organisation’s survival is dependent on the support of a number of stakeholders. However, professional service firms tend to lose the support of their most important stakeholders, which are their well-educated employees, also referred to as their ‘talents’. This study has used Harrison and Wicks’ (2013) framework of stakeholder value creation as its point of departure, which consists of four value aspects: goods and services, organisational justice, organisational affiliation, and opportunity cost. The framework states that managerial actions, related to these four aspects, are likely to create value for stakeholders by increasing their happiness. “Happy” stakeholders are further considered to keep supporting their organisation, which generated the principal research question of this study: How can professional service firms increase the happiness of their talents? Moreover, the study was limited to neo and classic-professional service firms, which include: consultancy, advertising, accountancy, architecture, and law firms. In order to explore what managerial actions increase talents’ happiness, a case study was conducted at a British law firm. Nine solicitors of three different levels of seniority were interviewed and the firm was observed for two days. This study not only confirms the validity of Harrison and Wicks’ (2013) framework but also extends it by identifying additional managerial actions, categories for analysing ‘talent happiness’ as well as a fifth value aspect: ‘job characteristics’. In a broader perspective, this study contributes to stakeholder theory by providing an empirical and micro-level illustration of the theory.