The first quarter of 2017 saw a continuation of soft demand among the AmLaw 200. Not surprisingly, law firms are now responding with additional layoffs. Most firms have already reduced their ongoing operating costs. Therefore, the only vehicle left to lower costs further is to eliminate people. While layoffs are occasionally required in any business, law firms seem to resort to this cost-saving method all too often. These layoffs are not only bad for culture and morale, the benefits are short-lived. Staffing levels quickly return to previous levels and, in some firms, exceed previous numbers. Following are three recommendations to avoid unnecessary layoffs in the future:

1. Perform an organizational review of the firm’s overall staffing on an annual basis. This review will provide the foundation for current staffing levels and the people holding these positions. Few firms take the time to look at staffing in this manner, which should determine the necessity of these roles within the firm. A typical justification for additional resources is that the current staff is overworked. In reality, people are in the wrong positions, supervision and direction are missing, and no one is tasked with looking for efficiencies. A thorough assessment and evaluation ensures that job descriptions are accurate and the functions they are performing are needed and provide value. Also, it verifies that the right people are in the right job where they can exceed expectations.

2. Designate one person to be responsible for and is held accountable for operational efficiencies within the firm. This person needs to understand and be part of the strategic vision for the firm. Adding attorneys to practice groups while lawyers within the firm have availability should no longer occur. Lawyers have to be productive and evolve their skills to serve a diverse set of clients. Also, the days of adding personnel to administrative areas should be over. The designated person should have a goal to reduce the number of people in administrative areas through the use of technology and operation efficiencies.

3. Utilize metrics as part of the assessment and evaluation of efficiencies of administrative areas. Metrics are commonly used to assess the firm’s overall health and evaluate individual attorneys and practice areas. The utilization of metrics to evaluate staffing and effectiveness of effort adds the benefit of objective data to the current evaluation process. Metrics add a dimension of knowing the benefits received for dollars expended.

Above are a few suggestions to assist in the management of staffing at all levels within a firm. If you do not have the time to implement these type of policies and procedures, do not be afraid to ask for help!