Our agency made many mistakes with hiring before we built a system and understood that hiring played a massive role in our company's success. We believe the same is true for law firms. Candidates are becoming increasingly savvy and demanding, so hiring the right talent is more important than ever. The adage "slow to hire, quick to fire" rings true, but it's not just about avoiding bad hires but strategically building a team that propels your firm to new heights.
The Cost of a Misstep
You may have noticed that candidates are often well-prepared, making it increasingly difficult to differentiate between true talent and those who excel at interviewing. These professional interviewers, as we call them, make a structured, objective hiring process even more crucial.
The cost of a bad hire can be staggering. It's not just about the wasted salary and benefits. Consider the time and resources spent on recruiting, onboarding, and training. Then factor in the potential damage to productivity, morale, client relationships, and your firm's reputation. According to a study by Apollo Technical, the cost of a bad hire can range from 30% of the employee's first-year earnings to a whopping $240,000! (Source: https://www.apollotechnical.com/cost-of-a-bad-hire/)
The Hiring Process: A Strategic Investment
If the cost of hiring tools seems daunting, consider it an investment in your firm's future compared to the potential loss of revenue from a bad hire. A well-structured hiring process empowers you to:
- Attract Top Talent: Craft compelling job descriptions that accurately reflect the roles and responsibilities. Utilize targeted advertising and leverage professional networks to reach qualified candidates.
- Objectively Evaluate Candidates: Implement a scoring system to assess candidates based on their qualifications and experience. Pre-hire assessments, such as those offered by Wonderlic (https://wonderlic.com/), can help you gauge cognitive ability, personality traits, and potential for growth within your firm.
- Assess Culture and Competency: Test Gorilla (https://www.testgorilla.com/) allows you to create customized assessments to evaluate candidates' skills, cultural fit, and personality alignment with your firm's values. This helps ensure a harmonious and productive work environment.
- Set Clear Expectations: Clearly communicate performance expectations for each role from the outset. This transparency helps candidates understand what's required and ensures they're prepared to meet your standards.
Learning from the Best
We've witnessed firsthand the power of a well-executed hiring strategy and were highly impressed. The Parnall Law Firm, headed by attorney Bert Parnall (https://www.hurtcallbert.com/), is a shining example. Bert's early adoption of the "slow to hire, quick to fire" philosophy and his commitment to building a solid team have propelled his firm to national recognition. Our CEO, Eric Elliott, first encountered Bert Parnall at a PILMMA (https://www.pilmma.org/) meeting in Key West, Florida, and his dedication to hiring excellence left a lasting impression.
The Correlation Between Hiring Practices and Revenue
We've repeatedly observed that law firms with robust hiring practices tend to generate higher gross revenue. When you have the right people in the right seats, productivity soars, client satisfaction improves, and your firm's reputation flourishes. It's a virtuous cycle that fuels growth and success.