Page 10 - Dallas Vol 6 No 1
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Attrition vs. Retention:
6 Steps to Secure Your Firm’s People Assets
BY JODI STANDKE
Historically, law  rms simply accepted attrition as a normal cost of doing business. Organizations hired attorneys, paralegals and sta , expecting people
to come and go and hoping those who stayed would add value to the  rm. Firms assumed attrition was somewhat costly, but generally placed no monetary value on the loss. However, attrition can actually cost up to 400 percent of a base salary for specialized hires.  is means for an attor- ney making a base salary of $120,000, the possible cost of losing that attorney is $480,000.
Although the actual dollars lost vary by  rm, the costs of attrition are signi cant and o en unnecessary. For some perspective on costs associated to your organization, consider the following:
• Time lost due to the interview process, training, and new-hire administrative details.
• Hiring costs of advertising, search fees, résumé review, interviewing, and reference checking.
• Base salary.
• Loss of productivity.
•  e managing attorney’s time lost in adjusting work-
 ow.
• Loss of the employee’s knowledge.
• Loss of client relationships.
• Added stress to team members due to increased work-
load or morale drop.
• Negative impact to the  rm’s reputation. • Reduced ability to attract top talent.
Attrition costs in many instances can be avoided com- pletely by smart hiring practices in the law  rm at every level. Firms o en spend little time identifying long-term
needs and goals when they are busy and in short-term need of help. Firms who think about retention at the be- ginning of the hiring process can focus on the revenue generated because of the hire, rather than on the cost of the hire.
SIX SMART HIRING STRATEGIES
Harvard University studies show that 80 percent of em- ployee turnover is the result of missteps in the hiring pro- cess. Even a small change in hiring practices can have a dramatic e ect on employee retention.  ese six strategies can help  rms stay competitive with clients, attract top talent to the organization and identify a “right  t” when making a hire.
1. KNOW THYSELF.
It is critical to identify and evaluate through your lead- ership “who you are” as an organization or legal depart- ment. What is the philosophy of your management team? What are your expectations regarding client service? How do your practice groups operate to support the  rm vi- sion?
Knowing who you are fundamentally as an organization provides needed insight in assessing who will be sincerely committed to your organization, motivated to join your team, and likely contribute the most.
2. ALIGN ON THE NEED.
 e next step is to create a position pro le, or “job de- scription.” Important to the position pro le is the identi-  cation of what work needs to be done in the short term and long term. Key stakeholders, those who have direct impact on and the most to gain or lose from the success of
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