Let’s face it,  none of us want to keep hearing the negative news about how hard it is to find and retain good employees.  If you feel that the task of recruiting and retaining employees is more difficult than ever these days, you have good reason to feel that way.  We are now faced with a double whammy: the market for good qualified legal staff continues to be very tight AND we are living in an economy where employers are tightening their belts and cutting expenses.  Never before has recruiting, retaining and managing the workforce been as crucial to the success or failure of a business or law firm.  A survey by the legal services agency Special Counsel of two hundred law firms found that legal administrators and hiring partners are finding it most difficult to recruit legal secretaries (64% of respondents), followed by attorneys (43%) and paralegals (40%).  Legal secretaries and attorneys tied as being the most difficult to retain (43%), followed by paralegals (40%).  Quantified in dollars and cents, retention of staff and avoiding unnecessary turnover begins with hiring the right people.  It also involves understanding both what is fair and equitable compensation and the types of benefits that are important to motivate and retain staff.

Various research studies show that there are six main reasons why someone commits to an organization in the first place: 1) opportunity to learn; 2) compensation; 3) career potential; 4) a good manager/mentor; 5) reputation of the organization; and 6) benefits offered.  Priorities may shift a little in a economic downturn, but if firms try to recruit and retain qualified staff with money alone, they may keep employees in the short run, but will eventually lose them to firms who focus on all these variables.

The way to retain good individuals has dramatically shifted over the last several years.  Employees today view their work and working environment differently than they used to, a fact that has given rise to an overall shift in workplace values.  Whereas raises and promotions were the incentives offered to employees to stem turnover in the past, it is becoming increasingly clear that so-called soft benefits are becoming more important to the employee.  Since the best employees may leave their current job and move over to your firm if they know your benefits package exceeds the package at their current firm, it is important to be able to identify not only what applicants are looking for in a benefits package, but also what tangible and intangible benefits are offered by your firm that will retain employees.  Although “money talks” and compensation and standard benefits such as health insurance and a 401(k) are very important to most employees, other more intangible and “quality of life” benefits, such as:

are now often more important considerations for both applicants and current employees making  employment decisions.

If you are serious about hiring the best candidates for the positions in your offices, there are several different and creative approaches that can be taken.  First, the Legal Placement Service with the Knoxville Bar Association can be your first point of contact.   Lisa Barnes,  Legal Placement Service Coordinator, has worked with a number of legal administrators over the last several years to understand the qualities needed to be a successful professional in a law firm and has assisted in helping many of us hire quality staff.  Second, make sure that all applicants understand the culture of your law firm and what makes it unique from others so that they will be eager to come work at your firm. Third, current employees can be a great source of hiring leads.  National research has shown that there is a positive correlation to retention of current employees if those employees see themselves as part of the “sales team.”   Many firms are continuing to provide finders fees as a benefit/reward for firm employees who refer an applicant.  Not only can an employee referral program reduce the overall cost-per-hire in a firm, it can lead to higher quality candidates since most employees will not refer someone whose performance might not be up to the firm standards.

Although there is no guarantee that at some point you won’t lose individuals in your employ, one way to assess and compare benefits being offered throughout Knoxville law firms is through the ALA Compensation and Benefits Survey.  Each year in late August, the Knoxville Chapter of ALA (Association of Legal Administrators) sends out a Compensation and Benefits Survey to area law firms.   Over the years, the results gathered from this survey have become a valuable management tool for those law firm administrators and attorneys who are responsible for managing compensation and benefit programs in their law firms.  The survey will be sent to over 75 law firms this year.

To ensure confidentiality of the survey results, ALA works closely with PriceWaterhouse Coopers, LLP, who compiles all the data received into meaningful statistics.  This data, when presented in final format, is unidentifiable to specific law firms.

The survey is divided into three areas: specific salary information for legal secretaries, paralegals, word processors, file clerks, messengers, law librarians, and IT staff, as well as general information such as length of work week and questions concerning overtime and bonus payments to staff.  Specific benefit related questions dealing with retirement plans, health insurance, vacation, sick time, and flexible work schedules are included. Other issues such as casual day guidelines, professional development opportunities and other legal services offered are now also addressed.

Benefits from participating in the survey include:

We continue to work in an environment where it has become critical to become proactive in our hiring and retention methods. We all need to think about what our firm has to offer the next time a resignation comes across our desk.  These days, a competitive salary and creative benefits package goes a long way in increasing the odds of hiring a good employee and keeping them!

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