An Ounce of Retention
As employment lawyers, we routinely witness the costs of good employer/employee
relationships gone bad. Case law is replete with instances where a seemingly productive
employer/employee relationship turns poorly and results in expensive litigation.
Costs of employer/employee breakups are easily understood. There are quantifiable and
unquantifiable costs associated with these breakups.
Law firms invest heavily in recruiting new employees, particularly associates. Many associates
leave firms within a very few years. Law firms often have an even worse track record for
retaining lateral hires. There are costs of recruitment, hiring, and assimilation when replacing
departing attorneys.
The costs are real and quantifiable. There is also opportunity cost associated with “ramping
up” any attorney.
Why do attorneys leave firms? Certainly money is a factor but often not the primary factor.
Rather, the reasons typically center on perception of opportunity, firm environment, or other
“soft” issues.
Perhaps law firms could learn from other businesses. Usually an associate or partner is
terminated or asked to leave, not because of intellectual strength, but rather due to factors
such as style, judgment, communication skills, and handling relationships. Perhaps the
selection criteria should more carefully scrutinize the issues that typically cause lawyers to wash
out of a firm. Businesses understand that it is not pedigree that ultimately allows an employee
to succeed, but rather his “emotional intelligence.” Because emotional intelligence is a great
predictor of success, it seems logical that recruiting decisions should be based less on academic
excellence and more on the lawyer’s life experiences, hobbies, avocations, work experience,
and likeability. Admittedly, these are more “soft” criteria and require more thought and effort
to evaluate but the extra effort may well be worth the payoff.
Businesses are also taking a more systematic approach to integration of new employees.
Sometimes called “onboarding,” integration often involves matching employees’ past
experiences with their goals in the new organization and developing a plan to motivate and
support these employees. Mentors may help new employees weave their way through the
organization.
Firms successfully retaining lawyers are often those which invest not just in technical skills these firms pay attention to relationship management or other “soft skills” that can have an
even greater effect on retention of clients, career satisfaction, and internal firm success. So,
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not only do successful firms hire for emotional intelligence, they help develop those skills
systemically.
Well-managed law firms should take a tip from businesses and consider a full integration plan
when selecting and developing lawyers to be successful in the firm. A systematic program such
as this may protect the investment a law firm has in its most valuable assets—productive
lawyers—and may increase attorneys’ tenures with the firm.
Mark Shank, of Gruber Hurst Johansen Hail Shank, recently authored Texas Litigators’ Guide to
Departing Employee Cases. He is also a professor at SMU Dedman School of Law and available
at [email protected].
Greg McAllister practices employment law, primarily related to minimum wage, and
discrimination, and noncompetition disputes. He is an associate at Gruber Hurst Johansen Hail
Shank and available at [email protected].
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