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Sep 12, 2018
Lawyer Retention Incentives
I am the administrator of a sixteen lawyer firm in South Florida. There are six equity partners, two non-equity partners, and eight associates. The firm was formed nine years ago and we have lost no attorneys during this period of time. We believe that we have a positive culture and have great lawyer retention. However, we would like to do more to ensure that lawyers stay with the firm and implement more incentives for them to stay. I would appreciate your thoughts.
Interviews with associates and partners in law firms conducted by our firm as well as other consulting firms suggests the following key factors and best practices concerning attorney retention:
- Compensation. The firm must have a compensation system that is competitive, pays lawyers the market rate, and has the potential to pay above market rate.
- Benefits. The firm must offer competitive benefits especially medical insurance, life insurance, disability insurance, and a 401k plan.
- Work life balance. This involves flexibility and control over one’s practice, work hours, workplace – whether at the office or working remotely.
- Culture. Lawyers want to work in a culture that is supporting and encouraging. They want to work with peers and clients they respect. They want meaningful work.
- Individual marketing plan for lawyers. Lawyers need help focusing their time on business development. Firms need to help lawyers market their services in ways that benefit the firm and the lawyer alike but use non-billable time efficiently and effectively.
- Growth Opportunities. Lawyers need to perceive that the firm provides them with opportunities for growth in their work, type of clients, progression to partnership. They want to know if there is a partnership track and specific details if there is a track.
- Recognition. Lawyers join firms to receive prestige, opportunity, and clients. Junior lawyers want to maximize their options and get good training. Senior lawyers want profitable work. They want name recognition.
- Environment. Many lawyers are not interested in working in a rigid environment. Casual dress policies and informal policies concerning how to address lawyers and staff in the firm can go a long way in creating a relaxed atmosphere.
- Team spirit. Lawyers join firms to work cooperatively with others. Lawyers that want to work alone are solo practitioners.
- Quality Facilities. Don’t skimp on your facilities and systems. Invest in quality office facilities, furnishings, and office systems. Use state of the art technology. Many lawyers have left their firms and joined other firms because antiquated technology at the prior firm.
- Competent support staff. Failure to provide lawyers with competent support staff can be a major irritant and can cause lawyers to look at other firms.
For sure, ensure that your compensation and benefits for your lawyers are competitive. While compensation and monetary benefits play a key role in lawyer retention, many of the above factors plan an important role as well. Many of the lawyers that I see changing firms are for other reasons other than compensation and benefits. In fact, some leave for less money when they feel they are undervalued and see more opportunity for growth and development in another firm. Some leave when they see the opportunity for equity in another firm.
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John W. Olmstead, MBA, Ph.D, CMC
Posted at 08:46 AM in
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