Four reasons to develop a conducting law firm culture

Culture is often relegated to the corners of human resource departments, because it is considered fluffy and non-essential to a law firm’s core work. Nothing could be farther from truth, thinks the New York corporate attorney, Hartley Bernstein. A firm's culture affects its performance in many ways. In this article, you see read about the four ways in which culture impacts a law firm's profitability, and consequently its survival.

Before we get down to the nitty-gritty of culture, let's first define what culture is. Bernstein thinks that the culture of a law firm is what its employees do everyday. It is a standard on which behavioural and performance expectations are set. It impacts productivity and the morale of employees. If culture deteriorates, a firm is bound to suffer the consequences.

Here are four ways in which the culture of a law firm impacts its business:

(a) Hiring of best lawyers

The culture of a law firm feeds its brand. Brand can be a major factor when best attorneys decide to join a law firm. The best candidates seek an environment that helps them in their work. They love to work for a firm that provides them with job satisfaction and a path to future career growth. It is through culture that law firms can convince the brightest attorneys that they possess these qualities.

(b) Retention

It is prohibitively expensive for a law firm to swap their existing attorney with a new hire. It can cost as much as three times the annual salary of the attorney. Hartley Bernstein says that these costs rack up pretty quickly if several attorneys decide to move on. Culture can be a powerful binding glue that keeps the brightest lawyers stay in the firm and save it financial losses due to attrition.

(c) Productivity

The culture of a law firm has a direct impact on productivity. When the culture is great, so that employees love it, they are apt to put in their best efforts. In contrast, if the culture is stifling to the creativity of attorneys, it is going to show up in the balance sheet of the firm – sooner than later.

(d) Client retention

Anyone who has studied business culture can tell that for the clients to fall in love with a company, its employees have to love fall in love with the company first. Law firms are not an exception. If the attorneys do not love and respect their firm, it is going to show up in client meetings. The clients will be able to see through the employees. Culture is one way to make employees love a company. When your attorneys take pride in being part of the law firm, the clients will be more loyal.

Hartley Bernstein is a New York based corporate lawyer. He is of the opinion that law firm culture has a major impact on the firm's profitability. Rich and liberating law firm culture attracts talent, retains it, enhances productivity, and makes clients more loyal.