Question:
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.
Response:
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:
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
Question:
Our firm is a two partner firm located in Rochester, MN. We have been approached by a solo practitioner that wants to sell us his practice. The price and terms seem fair but we are concerned about staffing and managing the other office. His practice consists of himself and two staff members. We would have to maintain a second office, hire an associate or two for the office, and then manage both operations. We have recently tried to hire an associate without success by reaching out to targeted lawyers that we knew in our local area. Frankly, acquiring this practice is a little daunting. We would appreciate your thoughts.
Response:
I believe the first issue is whether you are looking to grow the firm and are willing to undertake the additional management responsibilities that comes with growth. Some firms are ready for growth and others are not. Larger is not necessarily better.
I would not let your unsuccessful associate hiring attempts discourage you from acquiring the practice if you desire to grow and the price and terms are acceptable. You may need to cast a wider net and be more focused in your efforts. Recently a two attorney firm in Mid-Missouri hired an associate from St. Louis. A two attorney firm in Central Kentucky hired an associate from Lexington, Kentucky. It may take some time but a concentrated recruiting effort usually pays off regardless where you are located – even in small communities.
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John W. Olmstead, MBA, Ph.D, CMC