The cost of losing a lawyer
Managing partners of large law firms have told me that the firm incurs a loss of $200,000 to $400,000 for each lawyer that leaves the firm. This figure includes the cost of recruiting and training, among other costs.
In a July 25th USA Today Snapshots survey, the paper highlights the "high cost of a bad hire." There analysis includes recruitment, training, severance and lost productivity. There statistics are as follows:
15% say the cost is equal to an employee’s annual salary
42% say the cost is 2 times the employee’s annual salary
26% say the cost is 3 times
6% say the cost is 4 times
11% say the cost is 5 times!!!!!!
The bottom line is that it is very expensive to make a bad hire, to hire someone that can’t do the work needed or fit within the culture of the firm.
Moral: Create a job description, know what skills you want/need, and take the time to hire the right person — both staff and lawyers.Tags: Management
Categorized in: Management