By: Carol E. Crawford, SPHR, SHRM-SCP, Managing Director, Calibrate Legal
The global economy is moving at record-breaking speed. The intersection of consumer choice, innovation, generational shifts and technology has created a ripple effect that has only just begun to impact businesses and their workplaces. As our economy continues to rebound and the unemployment rate falls to less than half what it was in 2010, hiring and retaining the right employees are becoming an even greater challenge. Law firms and other organizations are struggling to fill open positions, with some positions remaining vacant for six months or more, causing losses in both revenue and opportunity. For law firms in particular, the 30% decline in law school enrollment between 2010-2016, combined with the increasing number of lawyers who seek careers outside private practice, will continue to put pressure on traditional hiring and staffing models. As firms increasingly look to fortify and/or elevate their in-house business capabilities, true impact players within marketing, business development, talent management and legal project management/pricing will be in even higher demand.
Leading firms are beginning to recognize that their talent is the only true differentiator. The article “Nine Best Practices of Effective Talent Management” demonstrates how quickly a new product or service or a lower price is duplicated by competitors. As the article notes, “[R]eplicating a high-quality, highly engaged workforce is nearly impossible. The ability to effectively hire, retain, deploy, and engage talent—at all levels—is really the only true competitive advantage an organization possesses.” http://www.ddiworld.com/9bestpractices-tm The impact of “The War for Talent,” a concept originally introduced by McKinsey & Company in 1998, is a competitive differentiator in law firms today. The daily headlines which boast partner and practice group coups between firms in the Am Law 200 provides ongoing validation.
A “Play to Win” Strategy
Firms that intentionally develop effective talent strategies which directly support their business strategies will be the ones to rise to the top. In this hyper-competitive environment, it’s not enough to promise a client-value focus. If you don’t have the right people with the right skills compensated at the right level and available to work at the right time, you will be unable to deliver the value and service promised to clients. The ability to attract, retain, reskill, upskill, reinvent and get creative with how you attract and deploy your talent will be the game changer. Firms who “play to win” the war for talent recognize the need for new strategies that challenge the status quo, disrupt traditional approaches, anticipate business challenges, search for new technologies and continuously seek creative solutions that differentiate them from their competitors. They also recognize the need for cross-functional collaboration and alignment in order to achieve exceptional operational execution. A “Play to Win” strategy is:
- Employee centric
- Client focused
- Data driven
A “Play Not to Lose” Strategy
Firms who take a more traditional approach to talent management will find themselves in a defensive position reacting to departing talent while struggling to attract the right new talent. While it’s not impossible to come from behind, it is daunting given the pace of change in the world today. The workforce of the future will look and operate very differently than it does today. An article published in Forbes on the workforce of the future predicted that 75% of the workforce will be Millennials by the year 2025. “In short, they want to be highly engaged by what they do and smart leaders will harness their sense of mission or risk losing these employees to more purpose-driven companies.” https://www.forbes.com/sites/workday/2016/05/05/workforce-2020-what-you-need-to-know-now/#5cbf1bc52d63 Retention will be the “Play Not to Lose” firms’ most significant pain point. They will deploy defensive strategies and work much harder just to hold their ground. A “Play Not to Lose” strategy is:
- Slow to change
- Process and policy focused
Ultimately, the collective experiences of your clients, candidates and employees will determine the winners and losers. A strong brand, reinforced by a meaningful purpose, values and culture, is required for firms to engage, deliver value and impact employees, candidates and clients. An integrated business and talent management strategy is essential to attain maximum impact. While the battles rages on in the “War for Talent” the most successful firms will choose to Play to Win.
About Calibrate Legal
We partner with our law firm clients to help capture and articulate the value of their human capital investments, and to advance the dialogue between law firm leadership and the Revenue Enablers who are critical to advancing their strategies. We are committed to helping law firms position themselves at the forefront of the next era of the legal industry by placing sophisticated talent, engaging firm leadership and building cultures driven by meaningful data.
Sophisticated Talent (J. Johnson Executive Search, a Calibrate Legal company)
We place impact players who hire, train, market and retain talented lawyers, enabling firms to achieve sustainable revenue growth.
- Placement: Leverage our vast network, in-house experience and curated candidates to connect sophisticated talent with roles that directly impact the bottom line
- Elevation: Replace the outdated concept of “non-lawyers” with Revenue EnablersÔ who work in tandem with Revenue Producers to achieve sustainable growth and advance the strategies of law firm leadership
- Cultural Assessment: Analyze stakeholder feedback to provide a diagnosis of the state of the marketing appetite within individual firms and a solutions-based blueprint for the path ahead, guided by timely and focused intelligence
We equip law firm leaders to be and lead the change needed to propel their firms into the next generation of legal services.
- Leadership: Strengthen team capabilities to maximize their effectiveness to confidently lead change within their firms
- Engagement: Develop bespoke strategies to attract and retain the best talent
- Structure: Design culturally-responsive methods to champion organizational effectiveness
- Perspective: Assess firms’ needs and capabilities to elevate and/or augment existing and future talent
We apply our methodology to business services functions to measure and improve performance, and establish a definitive return on human capital investment to inform future strategy.
- Metrics: Build a data-driven culture by designing metrics, key performance indicators, dashboards and scorecards to measure efficiency and top and bottom line contribution
- Alignment: Assess how closely business services activities align with firm goals, and help firm leaders plan and implement structural and operational changes to increase alignment
- Processes: Quantify the cost and impact of core business processes supporting the firm’s profitability; modify processes for greater efficiency and effectiveness
- Data: Design and implement processes around client data that improve the quality and usability of available research to drive recommendations and decisions
- Technology: Assess the firm’s CRM, email marketing, social media, web content, event management, prospect management, and analytics to help streamline and optimize available technology