As you’re well aware, the process of hiring a new legal tech employee can be strenuous. The hours and effort put into finding a replacement can wear you out. However, there is another burden that is quite literally more costly. It can essentially be broken down into two parts: the cost of being without an employee and the cost of hiring. Although some employee turnover can’t be helped, it is very expensive, so it is important that your action plan for bringing a new employee on board is as cost effective as possible.
It generally costs 2-3 times the average salary of the role you want to fill to hire someone new. With that much on the line, how do you make the most of your time and money while trying to make the right choice?
The Financial Impact of Being Without an Employee
More often than not, law firms are overly concerned with hiring the “perfect” employee. They are passing over the smart, capable legal tech candidates one after another, because they may initially be lacking a certain skill, that often, could be quickly learned. Meanwhile they are losing money the longer they go without someone in that critical role.
Costs to consider:
- The cost of the person(s) who fills in while the position is vacant, or the employee that steps up to perform that vacant job and has to work overtime.
- The cost of lost productivity. If that position is completely vacant that’s 100% productivity lost for as long as you’re without someone.
Keep in mind, that while most roles are critical to some degree, when you’re looking for a c-level hire like a CIO or CTO, the cost of being without that individual is even higher. This person sets the direction for your information technology department and must be aligned to your other departments as well. Getting the right person on board, is extra important, but being without for too long could do damage to your law firm.
Sometimes hiring someone with potential makes better sense than waiting for unattainable perfection.
The Cost of the Hiring Process
Law firms can’t afford hiring mistakes, and the time it takes to sort through resumes, set up interviews, conduct phone and in-person interviews, and wait for HR to approve the person can be just as costly. There have been several articles recently discussing the ‘good investment’ of hiring a staffing firm to help with your search. Not only can a recruitment firm do the legwork (so you can stay focused on your workload and priorities), they also may be better connected to the legal technology professionals you want to work with and they’ll go after passive candidates, something you’re unlikely to have the time to do on your own.
For a c-level or director-level opening, a retained search may be your best option. You can get dedicated efforts from seasoned executive recruiters, specialized in the legal technology niche. Your firm should do the searching, selection, and background checks for you, so you’re only meeting the best qualified candidates from both a culture fit and technical perspective.
While some aspects of the hiring process can’t be helped, you can control the amount of time you invest in the hiring process by making a good investment in a staffing firm and being willing to recognize good talent when they walk through the door.
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Note: this article was originally published in 2013. It has been updated to reflect current market trends and practices.