Employee Turnover: How Much Is It Costing Your Organization?

The costs of replacing legal support staff weigh heavily on the minds of hiring managers in law firms and legal departments. Finding the right person in a shrinking candidate pool can be tough; keeping them can be even tougher.

What does it really cost to replace a legal support staff member? A 2008 article in the American Bar Association’s Law Practice Today estimated that the costs of replacing even one member of the legal support team amounted to 1.0 to 1.5 times that person’s annual salary.

Every organization will face employee turnover costs at some point during their history. Some of these costs are clear up front; others are “hidden” costs that affect the entire organization down the road. They include:

  • Severance pay and benefits continuation costs,
  • Advertising and interviewing fees,
  • Background, reference, and credit checks.
  • Costs of overtime or temporary employees to “fill the gap,”
  • Orientation and training costs,
  • Administrative costs for processing both the separation and the hiring of new staff,
  • Time away from hiring managers’ “day-to-day” duties while they focus on hiring,
  • Lowered productivity for peers, the departing employee, and supervisors,
  • Time spent in exit interviews, transition meetings, and tracking file dispositions, file status, and unfinished procedures an exiting staff member leaves behind.

Three Ways to Reduce Turnover Costs

  • Invest in onboarding and ongoing training. Staff who receive thorough orientation and “onboarding” when they start at a law firm or legal department see their “learning curve” shortened considerably. This allows them to contribute more fully in less time and helps them fit into the new work environment with less trouble.
  • Encourage communication. The number-one cause of employee turnover in most professions is a poor boss-employee relationship or an inability to have concerns and complaints addressed adequately. Make sure your staff are being heard and can participate in making the organization run better.
  • Work with a staffing firm. Staffing organizations that specialize in placing legal support talent are experts at reducing the cost of finding new talent. They can also help you troubleshoot retention and improve matters to ensure good staff stay longer.

At Kent Legal, our experienced recruiters can help you cut the costs of employee turnover by helping you find and keep the legal support staff you need in Toronto. Contact us today to learn more about our legal support recruiting services in Toronto.

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