What is the solution to associate retention? More money, softer benefits or better management skills? James Fulton gives some tips on how to keep hold of your best talent and keep yourself profitable




Why should you care about associate retention? More than half of lawyers in a recent survey said it is one of the biggest threats facing the profession. If you think it is not an issue in your firm, then you are probably in the worst position of all.



Keeping associates settled helps to keep yourself profitable – it can cost tens of thousands of pounds to hire and train new people. But there are often less well-observed aspects to a churn of lawyers.



The cost of associate attrition

What is happening to your client relationships with this persistent change, and what is happening to your firm’s reputation? Associate retention issues are often indicative of injuries to the practice elsewhere that cannot be fixed with pay rises, so are you paying attention to what these areas are?



Whose fault is it?

The issues are all too often placed at the door of the HR department. It is a ‘people’ problem, the partners say, let the ‘people’ people deal with it.



But employees do not leave companies because the HR policies are not to their liking and, equally, they do not stay for very long if they are just given a small pay rise. There often needs to be a step-change somewhere else and, typically, it is in the leadership style of your top people.



So it is an issue of collective responsibility plus taking a long, hard look at what you are doing right and what you are doing wrong as a benchmark. Recognising and taking responsibility for the problem is the first step.



Tackling associate retention

Management consultants approach the issue of retaining mid-level lawyers in different ways. Many walk in the door with a big box full of expertise, so will try and answer the question before it is even asked.



While this might work occasionally, the better way is to go through a process of examining what is actually going wrong and where in each individual case, asking who should be dealing with it and how they can start to resolve the concerns.



Questioning is the first step in any plan to address high levels of attrition. What has happened in the past? What has worked or not worked? Has the situation got better or worse over time and does this coincide with any other events or hirings or firings of individuals? Who has been given the responsibility for the problem until now, and who is going to take on the task from now?



Do not assume that upping salaries and throwing in ‘fluffy’ employee benefits will do the trick. The problem is likely to be much deeper and of a different type.



One size fits all?

Each firm has issues that are a different flavour and need to be treated differently as a result. Yes, one symptom can be associates leaving, but the causes can be varied. There also may be more symptoms which you had not realised were related to the same underlying problem.



You have to be prepared that if something does not work first time, it may be because the problem is more serious than you anticipated, or you are less aware of what is failing than you thought. Flexibility and adaptability are crucial.



What are the basics?

Lay the groundwork first, with good rates of pay, benefits like adequate health care, childcare and technology to allow flexible working. Strive for diversity of all kinds. Manage expectations. Have morals, green values and a high level of corporate social responsibility, and the modern associate will be more likely to stay loyal.



Leaders are key

More often than not, it is an organisation’s leaders that make or break whether someone stays. Firms need to recognise attrition as a leadership issue and place the responsibility at the appropriate level of seniority and at the appropriate partners’ and managers’ doors. It is an issue of culture, not just policies, so attitudes, feelings and opinions count as much as actions and events.



Sometimes you have brilliant lawyers who get promoted to partner and think all they need to do to be successful is to carry on what they are doing. Being a great leader is a different kettle of fish from being a fantastic lawyer, and although there are transferable skills, always realise that there are new tasks and opportunities which will require different abilities that you may not already have.



Common mistakes

A large part of addressing associate retention is identifying the problem in the first place, which often can be the stage which gets skimped on the most. Then you look at the leadership methods and attitudes, and take appropriate action. It could be as straightforward as creating a new set of values for a firm, lived not laminated, so everyone is working towards the same goal.



The cost of change

There is usually no such thing as painless change, so plan on how to compensate those who are losing out in the process. It may be leaders who have to break out of the silo mentality and thus, by working with senior colleagues more closely, are sacrificing the ability to be always right.



Some comfort in doing things the way they have always been done may inevitably be lost, but if retention rates soar as a result, then it can definitely be worth the effort.



Learning points

l Spend time identifying the actual issues – do not assume you know what is going on;

l Address the groundwork: softer benefits, flexible working, more reasonable work/life balance, appreciation of a job well done and managing expectations;

l Take a long, hard look at your leadership; and

l Plan and implement actions that will make a real difference but allow and compensate for the costs incurred.



James Fulton is a partner in organisational development consultancy Stanton Marris