Beyond Billable Hours: Improving the future for people and the profitability of firms

In the legal services world, the rhythm of the billable hour often dictates the pace. It's the tangible measure of productivity, the foundation of your firm's financial success. However, in a relentless focus on time recording and fee targets, are firms overlooking an equally, if not more, critical investment – the one we make in our people?

The long-term health, resilience, and profitability of any intellectual property or legal services firm directly depend on its power to find, develop, and retain talented people. Thinking about team investment only as an immediate cost, instead of a strategic one, is a view that firms can't afford to take anymore.

How finding talent in intellectual property and legal services is changing

The competition for skilled talent is fiercer than ever. Today's professionals, from trainees to experienced partners, are looking for more than just a competitive salary. They want engaging work, clear career progression, supportive leadership, opportunities for development, and a culture that genuinely values their well-being.

Firms that don't offer this kind of all-around support and opportunity will find it harder and harder not only to attract top candidates but also to keep their best people.

The true cost of neglecting your people

When firms experience high attrition or find it difficult to recruit, the impact goes far beyond the inconvenience of an empty desk.

Some of the many quantifiable costs include:

• Direct recruitment costs: Advertising, agency fees, and management time spent interviewing add up significantly. Replacing a single fee-earner can cost tens of thousands of pounds before they even start.

• Lost productivity: There's the departure gap, the time it takes for a new hire to get up to speed, and the learning curve associated with firm-specific processes and client knowledge.

• Impact on morale & remaining team: High turnover can demoralise existing staff, increase their workload, and create uncertainty, potentially leading to further departures.

• Client disruption: Changes in key personnel can disrupt client relationships and sometimes lead to clients looking elsewhere.

• Reputational damage: A reputation for being a 'revolving door' firm makes attracting top talent much more difficult.

These aren't 'soft' costs; they directly impact your bottom line and your firm's capacity for growth and success.

How targeted people strategies make a difference

So, how does a firm move beyond simply acknowledging the problem? By actively investing in our people with thoughtful approaches. This is where thoughtful approaches to people, including wellbeing, specific coaching and development can really pay off.

• Enhanced attraction: Firms known for investing in their people's growth, offering structured coaching, mentorship, and clear pathways for development become very attractive to talented professionals. This isn't just about policy; it's about building a reputation as an employer where individuals feel genuinely supported and can see a future for themselves.

• Improved retention: Coaching helps individuals build resilience, enhance leadership skills, navigate challenges, and align their personal goals with the firm's objectives. When people feel invested in, understand their contribution, and see growth opportunities, their commitment deepens. Tailored development plans and well-being initiatives demonstrate that the firm cares about them as individuals, not just fee-earners.

• Stronger leadership & teams: Investing in leadership coaching cultivates more effective, empathetic managers who can better support and motivate their teams. This fosters a more positive, collaborative, and productive working environment.

Putting tailored people strategies in place, covering onboarding, ongoing development and support, performance reviews, leadership growth, and well-being, isn't just an expense; it's essential for your overall strategy. It shows that your firm truly values its people.

Invest in your future today

Focusing solely on billable hours provides a snapshot of current performance, but investing in your people helps to build performance for the longer-term future. Investing in your people builds loyalty, enhances skills, reduces costly turnover, and creates a culture that attracts the best talent in a competitive market. 

Quite simply, investing in your people makes firms more pleasant places to work and makes them more profitable.  Who doesn’t want to achieve that combination of results?