Recession Proof Workforce Solutions
By Diana J. Baker of Davidson Legal Staffing
Hiring freezes, layoffs, recession, oh my!
Whether you believe it's an economic reality or unnecessary hype, an economic downturn is a real enough possibility to get the attention of most law firms.
Many firms are looking for ways to control costs by trimming payroll. A recent Law.com article reports that some firms are taking a closer look during performance reviews at who is on the payroll and laying off staff and associates to reduce "redundancies and inefficiencies." Others have implemented hiring freezes or are growing staff at a slower, more deliberate pace until the market recovers.
In uncertain economic times, the inclination is to bring everything in-house and make due with what you have. But perhaps the real solution is a change in hiring mentality. Utilizing flexible workforce solutions - such as temporary legal staffing - allows you to maintain productivity, ensure workflow optimization and meet your deadlines without incurring high overhead.
Here are a few of the reasons to use Temporary Staff:
- Reduce overtime expense and keep top-rate employees
Don't overwork your core employees during a hiring freeze. Overtime can negatively impact you by causing employee morale to plummet and top-rate employees to give notice. Supplement your legal team with attorneys, paralegals, secretaries, and clerks. You will see reductions in payroll, health care expenses and pension costs. - Maintain productivity while you search for permanent employees
The hiring process can take a long time - think of the interviews, negotiations and training. Bringing in a temporary contractor to fill the gap until a permanent solution is found can take the stress off of you and your team. - Don't settle the big case
While some cases will settle more quickly than in the past, others will go to trial. This is a great opportunity to use temporary attorney, paralegal or litigation support to keep the costs down for your client and keep profits up for your firm. - Outsource high turnover positions
Positions with turnover rates of 14 months or less translate to lost dollars when you factor in recruiting and training time. Outsourcing these positions can add to your bottom line.
Utilizing temporary staff for document intensive cases in particular can save you money. Your firm can take on the larger cases without taxing your own partners and associates and without having to refer the case to co-counsel. By utilizing Contract Attorneys to perform basic discovery work, such as document review for relevance and privilege, you can take on the larger case and save your client money in the process.
The following recession sensitive solution is a hypothetical example from Davidson Attorneys:
8-Week Document Review Hypothetical Cost Comparison
Assignment: Patent infringement litigation document review for relevance and/or privilege
Using your own Partners and Associates
Number of Attorneys: 10
Billable rate: $250/hr
Billable hours per week: 40
Total Legal Fees to Client: $800,000
Using Contract Attorneys
Number of Attorneys: 10
Bill rate: $60/hr*
Billable hours per week: 40
Total Pass Through Cost: $192,000
Total Savings Utilizing Contract Attorneys: $608,000
*Hypothetical rate includes offsite location, laptops and project management. Please note that rate is used as an example only and is subject to change based upon the requirements of each project.
With today's economic forecast looming, the need for temporary staffing is more of a business necessity than ever. A great legal staffing agency can help you maximize your efficiency through workforce solutions.
Diana Baker is a former Legal Administrator and Vendor Relations Chairperson of the OC ALA. She is now the Director of Training and Business Development for Davidson Legal Staffing.
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