The Role of Human Resources in Law Firms
HR plays a critical role in the success of every law firm. The demands placed on HR of today’s law firms are greater than ever before. Finding and retaining the best attorneys and support staff and keeping them engaged, reviewing compensation and benefits programs, affirmative action compliance, and training, especially in the area of diversity training all fall under the responsibility of the HR Department. Those HR Functions can easily take 50% of an HR person’s time. And, when time permits, HR should be looking to the horizon and planning for the future of that law firm, attending to such matters as succession planning and what the firm will look like within the next three to five years. These functions can often take the other 50% of an HR person’s time.
Today’s law firm HR person must develop expertise in many areas of human resources, especially in the area of talent acquisition. Law Firms have many unique needs which drive a need for many special services which require or are best suited to be performed by HR professionals who understand those needs, such as developing job descriptions, interviewing and assessing for competency and cultural fit. They also need to develop expertise in the area of compensation and benefits practices . Some firms are utilizing HR professionals to provide more hands on recruiting, especially in this economy where the best candidates often have several offers of employment. Succession planning is an important function because the world is seeing the largest mass retirements in history at this time as baby boomers and even baby busters are retiring at an incredible pace. Age, diversity, and generational challenges are another aspect of succession planning that must be addressed. In this area, HR can play a central role in planning and helping to execute succession progress.
Effective HR requires that HR professionals possess the ability to think strategically for the firm, and how they can help to achieve the firm’s strategic goals, while at the same time being able to roll up their sleeves and get their hands dirty to do tasks and perform functions that are important for the firm. Basically, the HR professional must possess a hybrid skill set that is rarely found in a single HR person. More often, HR Departments are a small staff of one, two, or three and can utilize temp specialists in areas of expertise when required. HR is a rapidly changing profession and law firms face much different challenges than the businesses that they serve.
Best Practices for Recruiting Legal Professionals
Recruiting qualified talent is critical to the future success of any law firm. For mid- and large-sized firms, there are several common strategies that seem to bear fruit. These include hiring a third-party professional recruiter who understands how to find legal professionals, using niche job boards that concentrate on specific areas or fields of law, and asking for street referrals about the firm as a whole, including the culture, management and leadership style, and types of matters being handled.
The most common third-party recruiting strategy is a headhunter. With solid, positive results using recruiters, many law firms seem comfortable using a headhunter for its recruitment needs. Having a recruiter with experience and knowledge in the legal profession is important, and finding a recruiter that has proven success with hiring the right fit seems equally important. The goal should be to find the perfect candidate person to fill the need. The downside of third party recruiters is the cost of hiring them as your relationship with them no longer has the beneficial impact it once did when you were a candidate for a position. They may have a financial incentive to place you in the best position possible, but may not always have your best interests at heart long term.
Legal Position Job Boards and Jobs specifically advertised on legal practice niche boards like LawCrossing.com and LawJobs.com have been found to yield a great return for employers. With thousands of legal-specific job seekers browsing these boards and millions of jobs database entries, they work. Legal-specific job boards attract people who are less likely to apply for other general job postings online. Legal-specific job boards save time and money by eliminating irrelevant candidates.
Finally, as with any other recruitment strategy, word-of-mouth referrals from streets (or "word-of-mouse" referrals) about how it is to work for a specific firm are important. Compare the difference of personal referrals from current associates at the law firm, with third-party referrals, and the benefit to the law firm is clear. Better candidates are attracted because the actual people who work there are the ones suggesting that their current position is the best choice for future employment.
Employee Retention in the Law Firm
Retaining seasoned employees is a sound business strategy for most law firms. Good employees are hard to come by and can be difficult to replace—especially at the associate level, where the return on investment (ROIs) for training and onboarding is substantial. The key to high retention rates is continual employee satisfaction. The following are strategies that law firm leaders can implement to foster an environment where morale stays high and employee churn stays low.
Career Development
Providing employees with opportunities to develop their careers can be a key factor in firm retention. Offering additional training, allowing employees to experience two different practice areas, and providing classes and certifications so that employees can become better at their current job or branch out into another field within the company are all effective retention strategies.
Mentorship Programs
Another effective strategy for employee retention is creating formal and informal mentorship programs. These can take the form of an assigned "training buddy" for new employees or a more formal program that pairs senior employees with junior employees to guide them through career development. With any type of mentorship program, regular check-ins by senior staffers ensure that junior associates receive constructive feedback while being encouraged to take ownership of their work, which helps them grow into their roles.
Challenging Environment
Employees who feel challenged are less likely to move on to another job. Providing employees with responsibilities that push them outside their comfort zone not only offers opportunities for growth but also shows that management trusts them to carry out more advanced tasks. Challenging employees to take on leadership positions, attend industry conferences and seminars, and even seek out advanced education, can motivate them to stay with the firm.
Supportive Work Culture
Supportive work cultures breed loyal employees. Fostering a culture where employees feel comfortable asking for help, have their needs met, and are encouraged to suggest new ideas can keep employee morale high. In addition to strong communication between employees and management, firms can encourage supportive culture by treating employees like human beings who have lives outside of the office. Flex work hours, the option to work from home, a comfortable dress code, and a dog-friendly policy can all improve workplace culture.
By focusing on innovative and positive strategies that encourage career growth and foster a healthy work culture, law firm leaders can retain their employees for the long term. The goal is to create a culture and environment where employees feel satisfied, challenged, and motivated to grow along with the firm.
Managing HR Compliance and Regulations
Managing human resources compliance with applicable legal regulations is a monumental task for law firms. Employment laws governing every aspect of the employment relationship are constantly evolving and becoming more complex. These laws include Title VII (prohibiting discrimination based on race, color, religion, sex, pregnancy or national origin) and its state law equivalents, the Fair Labor Standards Act (governing minimum wage, overtime, record-keeping and youth employment), the Family and Medical Leave Act, the Americans with Disabilities Act, the Privacy Act, the Worker Adjustment and Retraining Notification Act and its state law equivalents, the Age Discrimination in Employment Act and its state law equivalents, the National Labor Relations Act, etc.
Some of these laws apply only when a law firm has a certain number of employees or has been in business a certain period of time. For example, the Family and Medical Leave Act applies only when a business employs at least 50 employees during 20 calendar weeks during the current or preceding calendar year. However, non-compliance can have significant, if not devastating, financial consequences. Despite the perception that in-house counsel are well informed about the legal requirements impacting employment actions, such is not the case. For example, a review of court dockets of FLSA cases continues to reveal that sophisticated plaintiffs’ attorneys are routinely citing obscure, but relevant federal and state employment laws which corporate counsel do not have an adequate understanding. There are at least 29 separate federal and state employment laws which affect law firms’ HR practices.
Employing compliant HR practices can protect law firms from a myriad of enforcement actions. For example, the United States Department of Labor Wage and Hour Division (the "WHD") is charged with enforcing the FLSA. Information directly from the WHD suggests that traditionally, the WHD has been expending the majority of its enforcement resources against so-called "Low Wage Industries." Recent publications by the WHD indicate that the skyscrapers of Manhattan are now home to thousands of employers who are violating the FLSA. Over the past few years, the WHD’s enforcement activities against law firms has increased significantly. In addition to the WHD’s troubling new trend, state regulatory authorities are scrutinizing law firms HR practices more thoroughly.
Leveraging Technology in Law Firm HR Processes
Technology is fundamentally changing the way that law firms manage key human resources functions like recruitment, training, and employee performance. Client expectations, competition from alternative service providers, and the need for flexible work arrangements are all driving law firms to adapt their human resources practices to meet the needs of a new marketplace.
One of the major shifts in law firm human resources has been the growth in HR software solutions available to support HR professionals in providing better services to their firms or organizations, as well as the employees and other individuals that they interact with. For all of the benefits that these solutions provide to support the work of HR professionals, the truth is that any good HR professional will tell you that these systems drive horrible HR processes. When lawyers ask why it is taking them so long to hire and onboard a new associate or staff member, the answer inevitably is: the new HR software solution or software solution that was acquired and implemented. The software package drives the process for the HR professional rather than the law firm driving the process. So, while I am a big advocate of law firms investing in new technology, I also believe that technology should improve processes rather than dictate them.
One of the largest areas where I see artificial intelligence and other forms of technology helping human resources departments is in the area of talent acquisition and recruitment. Not only do I see firms using automated recruitment tools to screen job candidates and resumes, I see clients like SNBC, the largest mechanical contractor in North America, using "robots" on their websites to answer questions about their business. Other companies are using technology to allow live video interviews for job candidates. What I still don’t see law firms doing well is interacting with job candidates and new hires. While law firms are generally better spending money on technology platforms than advertising to build their brands, I can’t help but believe some of those funds that go into technology solutions should also be put into branding efforts that actually target lawyers and other personnel that are valuable to a law firm’s practice. The good news is that while there are nearly limitless options for HR technology solutions and services, early adopters are leaps and bounds ahead of most law firms .
Technology can also be used by law firms to optimize their onboarding processes for new hires rather than just make them easier to manage. Smart law firms are using online technologies to ensure that onboarding of a new employee occurs on the employee’s first day of employment (and not two months later after everyone remembers that the firm hired another lawyer). I sometimes wonder why large multinational law firms invest large sums of money to pay substantive practice group leaders to manage thriving international practices when the management processes in those overseas locations are often very poor and experience high levels of turnover. Over time, a firm’s profit margins on a lot of branch officed practices can even begin to erode due to the extensive cost that is associated with having to constantly recruit and onboard new lawyers to those branch offices. Firms who recognize that and use technology as an enabler to streamline the onboarding process see a return on their investment in human resources personnel.
I have seen some really interesting HR process automation in place at a few law firms. Those firm’s HR professionals have adopted a prime number approach to hiring people – focus on identifying people that could be a good fit for the firm, automate the process of onboarding them, and then engage with them through technology once they are onboarded. Another firm used a form of screening test to help them better understand the type of individuals they were bringing into their firm in order to get a better sense as to fit through automated surveying that was done on the associates. One firm was doing exit interviews long before they left the firm utilizing software to ask the same questions so that they could identify processes and issues that may have created the departures. Technology enabled those law firms to have more productive relationships with their new hires and have a better sense as to how to integrate them into their business.
I have seen more than my share of bad HR horror stories in law firms where a failure to adopt and deploy certain best practices and the use of formalized and structured processes cost the firm thousands of dollars. In the coming months, I will discuss some of those bad experiences, as well as some of the good ones that utilize technology as an enabler and not as a dictating force.
Diversity and Inclusion in the Law Firm’s HR
For law firms, diversity is of the utmost importance. A variety of perspectives provides law firms a competitive edge, promotes creativity, and increases the ability to meet clients’ needs. Diversity is a means of making law firms representative of society as a whole, which is a positive image to be associated with. Inclusion is equally crucial, as it ensures that everyone feels like they belong and are valued, regardless of gender, race, age, sexual orientation, or background. Inclusion creates a sense of community and cohesiveness and promotes collaboration and engagement among employees.
As an HR professional with a legal background, greater knowledge of professional ethics and rules of conduct when hiring new employees can be ensured. Tools such as screenings and background checks can be used to make more well-informed hiring decisions. Legal HR professionals also need to pay closer attention to billable hour requirements and PTO policies. When hiring attorneys, make sure they are aware of their billing quotas and that there are policies in place to ensure that employees are taking adequate time off. The American Bar Association has several resources for HR professionals in the legal industry, including a lawyer’s guide to employment law.
There are many initiatives and policies that can promote D&I in the workplace. Consider incorporating diversity metrics in the evaluation of firm or department leadership to prioritize diversity and accountability at the highest levels of your firm. You can develop specific goals around D&I and promote them throughout your firm. Implement a blind resume review process prior to interviews so your firm is not making subconscious decisions based on age, gender, or ethnicity that might cloud judgment about applicants. Offer flexible hours and remote work opportunities. Praise and reward D&I initiatives to highlight the importance of building a diverse and inclusive workplace.
The Role of HR within Law Firm Culture and Employee Satisfaction
Human Resources is uniquely positioned in law firms to foster a strong, positive culture. The HR function is the only function in the firm that is actively involved in every single employee’s experience — from hiring to onboarding to learning and development to promotions to training to compensation to offboarding and everything in between. In order to create a high-performing culture, HR needs to be at the table and at the forefront of all efforts and actions to cultivate a strong, healthy organization. It is also the responsibility of every single leader, manager, and employee — from the managing partner down to the most junior associate. But HR needs to lead the charge. This means engaging with the stakeholders that they need to influence — partners, practice group leaders, managers, associates — to understand what they truly care about. In addition, HR needs to consistently communicate and demonstrate the value integration with firm strategy, and enforce accountability across the organization. On the employee side, HR should regularly conduct stay, exit, and engagement surveys to understand where they are and where they want to go. Surveys can help pinpoint what employees’ values are, what’s working, and opportunities for improvement. HR should also make sure front-line managers make connections with their direct reports. Everyone can agree that people leave leaders, not firms. There are quite a few ways HR can build culture up, and fortunately, there are many ways to do this all while improving employee engagement, which positively impacts retention.
HR should be intentional about integrating culture- and engagement-building activities into the routine of the organization. This includes adding a cultural/engagement component to the weekly or monthly practice group meeting, requiring project managers conduct a team building exercise with their teams after every project (this could be something simple like lunch or a happy hour) , designating time during the weekly staff meeting for personal introductions, and leveraging town hall meetings, business development presentations, and additional firm-wide communication as opportunities to reinforce the firm’s culture.
HR should utilize highly relevant, valuable, actionable, and engaging communication to reinforce the firm’s values and culture. This means customizing communications to audiences and content; for example, communications for first-year associates need to be very different from the partners’ communications. In addition, HR should leverage all means possible to communicate — not just the firm newsletter, all attorneys’ meeting, or the all-staff meeting, but all means possible (intranet, blogs, Twitter, Facebook, tea times, one-on-one meetings, etc.).
HR needs to be creative in coming up with quality and cost-effective team building activities that can be easily incorporated into the workflow of the firm. These could be things like holding regular small-group "lunch and learns" with a partner and associate on non-legal issues, encouraging project teams to hold a team dinner once a quarter, having a firm-wide bowling night and inviting staff to come along too, sponsoring volunteer and/or social activities, and incorporating JD Professional Development sessions into the daily work processes.
HR should build relationships with similar-focused organizations, such as HR Law Firms, the Association of Legal Administrators, the National Association for Legal Pro e-Filing, ILTA, and other associations and organizations for corporate lawyers and HR professionals, to build cross-firm, functional alliances and benchmark against them. These alliances are foundational to a powerful, successful HR function, and provide a lens through which to understand how you’re measuring against similar focused organizations.