Welcome back to our 3 part miniseries on the under-discussed topic of retention. The last lesson looked at a subject close to everyone’ hearts, client retention. In Part 2, we move to another — talent retention. Should you do it, if so how, and how does it affect law firm sustainability?

To understand the imperative nature of client retention, you need only understand what a law firm is. It’s a meeting spot between clients with problems and lawyers with talent. That’s it. If the lawyers have good methods and mindsets they will solve the clients’ problems with minimal pain and drama, and the clients will come back. The rest of it — the branding, the building, the coffee service — that’s all incidental. A law firm is clients plus talent, correctly aligned.

Does this explain the recent talent wars? Not accurately. Yes, we all saw that some firms reacted to a demand spike and went on a hiring spree, overpaying for lawyers and trying to pass on the cost to clients. Inevitably, this ended with layoffs and even paid deferrals of first year associates.  But, as some firms were honest enough to admit, that’s not talent retention, or even sound business management.

In other firms, leadership took a more client-facing view. That means everything has a client orientation. The wrong question is how can we ride the demand wave and fill our coffers? The right question is how can we create enduring relationships with our clients? 

Business will always be cyclical, so it’s about the right talent, for the profile of the clients and the structure of the firm. The right talent will always make the firm a better destination for clients. Those firms were the earliest to recognize that “soft skills” like empathy, authenticity and transparency are no longer optional extras, but the key to retaining the right talent.

A client-facing firm will invest in long-term measures to support their clients’ needs. These will run across the firm; office space, technology, billing practices, and most of all, talent. Talent retention means hiring the right talent, creating a learning environment in which they grow and flourish, and equipping them with the toolset and mindset to be effective problem solvers. This new breed of lean lawyer will enjoy an enduring career with the same firm, and the same clients. And that, friends, is genuine retention.