Staffing Your Firm or Legal Department for Recovery

Following a dismal two years of decline, the United States economy is showing signs of improvement with the U.S. Gross Domestic Product (GDP) gaining 2.8% in the third quarter of 2009--the strongest gain in two years--and consumer spending and job growth seemingly on the mend. In the past, such economic indicators would signal to hiring managers that it’s time to gear up for a turnaround, however lessons from the recession should not be forgotten. It may be necessary to exert more caution.

If the past two years have taught us anything, it’s that nothing is certain. Many economists are predicting a double dip recession and as a result, businesses are reluctant to hire until they are certain that the second dip won’t come. In the third quarter of 2009, U.S. economic productivity rose 8.1%, the greatest increase in six years and a reflection of how tightly companies are managing their margins. Pair this with data that labor costs fell 2.5% for the same period and you have a clear indication that companies are operating with significant caution.

If the economy is in fact improving, how can your firm or legal department handle a potentially volatile workload without over committing fixed expenses to head count or burning out your existing staff? One of the simplest ways is by hiring temporary or contract legal professionals.

The Contingent Labor Model = Higher Productivity and Flexibility

Temporary staff has traditionally been used to meet requirements when a receptionist is out, or for clerical tasks and special events. In recent years, however, top companies are growing wise to the benefit of using white-collar contingent labor to manage peak workloads while mitigating the risk of having to later reduce head count. Now, firms and legal departments have also caught on to the trend and are hiring legal professionals with specialized skills in every substantive area of the law available for project and temporary work.

The use of temporary employees as part of an ongoing approach to managing workflow is known as a “contingent labor model.” This approach enables a company to supplement their core of full-time employees with skilled specialists to accommodate fluctuations in workload during the year. When demand is up, they can count on skilled temporary workers to help handle the increased workload. When demand falls, adjustments can be made quickly and easily to the temporary workforce, leaving full-time staff intact. As such, a company gets the benefit of additional staff during peak seasons while minimizing fixed labor costs.

The contingent labor model can deliver tremendous cost savings and significant increases in work product. Contract attorneys can be utilized at a lower hourly bill rate than that of outside counsel. Contract employees are also less likely to participate in meetings or have social relationships on the job, and as a result, are free from many of the distractions that can make other workers less efficient. Additionally, temporary employees don’t require the same benefit compensation as full-time employees–a key concern in a time of rising fixed employer costs.

Most importantly, the contingent labor staffing model provides immediate access to highly specialized talent without the commitment of fixed labor costs. This affords a company critical agility, allowing it to expand and contract staff levels more nimbly in reaction to workload and opportunity. Engaging experienced project attorneys during peak litigation periods, for example, can free senior attorneys and legal staff for more critical tasks. As another example, your department may benefit from the use of experienced and knowledgeable contract attorneys to assist with M&A related activity during periods of rapid and sudden growth.

And when (not if) the economy turns around, these skilled contract workers may be on the frontlines for permanent hiring as they are already trained, understand company culture, and are proven to deliver good work. This reach into the legal talent pool will ultimately help reduce recruitment, training and on-boarding costs when your firm or legal department seeks to expand.

Outsourcing: Deciding Whether to Partner with a Staffing Firm

The best job candidates rarely just fall in your lap. It takes time and dedication to find the best fit– time taken away from running your firm or legal department. As a result, many legal office managers are relying on professional staffing firms to help fill the gaps in their firm or legal department’s staff. A professional staffing firm can help you find the top talent you are looking for, provide a competitive edge, and save you time and money.

Moreover, there a variety of benefits to working with a staffing firm that specializes in recruiting legal professionals for the legal industry. Many are staffed by knowledgeable legal professionals including former attorneys, paralegals, and office managers who know your local job market inside and out. They have significant experience and knowledge of the legal industry, while understanding the necessary skill sets for a candidate to succeed. They can help you determine the right job specifications for each position you are looking to fill, and also have relationships with a variety of industry associations where they regularly network to meet new job candidates and contacts.

Hiring a Staffing Firm: Things to Consider

If you are interested in engaging the contingent labor model and/or hiring a professional legal staffing firm, there are several things you should consider:

1. Assess your staffing needs. Are you staffing up for a short-term project or will this be a long-term assignment? What types of skill sets are you looking for – encoding, project management, experience with a particular software, or substantive knowledge? Knowing what your staffing needs are before you pick up the phone will help your staffing partner better serve your needs.
2. Do your research. There are hundreds of staffing agencies in every state, many who claim to have the expertise necessary for staffing your legal office. Many offer general clerical, technology or administrative staffing needs with a ‘one-size fits all’ approach, while a select few specialize in working solely with legal professionals for the legal industry. A legal staffing firm should consist of experienced legal professionals at a minimum, in order to understand your very specific staffing needs. Additionally, request information as to the size and reach of their candidate base, ensuring they have a good stable of experienced attorneys, paralegals and legal support available in your city as well as any other cities you serve, and check references. Don’t forget to ask how they recruit, screen and test their candidates.
3. Finally, manage your staffing relationship. Let your staffing partner know when you have job openings before they happen and provide as much information and feedback as possible to ensure that you receive the type of candidates you’re looking for. After all, every partnership requires communication and an ongoing dialogue.

Conclusion

In summary, there are a few key lessons to consider when it comes to staffing up for the recovery:

• Hiring temporary or contract workers rather than full-time employees may be a better way to ease into the recovery. After all, there is nothing worse than watching your business hit a snag and having to go through another round of cost cutting and layoffs.
• Partnering with a specialized legal staffing firm can help you find the top talent you are looking for, provide a competitive edge, and save you time and money.
• Be methodical when it comes to selecting and managing your staffing partner. Your hard work will pay off in the end.