Partners: what are the costs of hiring a new associate? Why is it better to retain than just hire someone new?

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It’s all about speed and efficiency. GC1 hit the nail on the head, the biggest cost in terms of dollars is the recruiter fees, but the costs of training are immense. I have an associate I work with where I can send 100 pg. doc and just say “Please turn” with no context. They not only know what to do substantively, but they also know the party is a sub of a major client, they know when Jane Doe at that client wants it, that Jane wants tracked changes and not a redline (but Suzan, the GC, wants a redline and hates tracked changes so he sends it separately to them), and he knows that I want to see his questions and comments in the email and not in the doc (and what questions he needs to ask and comments to alert me). That took like 4 years of training. You think I want to get someone else up to that speed?

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Not OP, but pay increases, title changes, added responsibility (not as in more work, but having more input in how work is done, higher level discussions with clients, etc.), all help to retain people. And definitely, helped keep me at my firm as I was growing.

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You lose the investment you made in the person who left and incur all the costs in training the new person.

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The cost of training them, the cost of them learning to read your illegible handwriting, the cost of them learning how you like clauses to be drafted - these are not concrete costs but costs nonetheless.

Plus the cost of actually spending time finding and interviewing someone - and any headhunter/finder fees on top.

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I’m not a partner but a new person is a wildcard - they could be super weird or a slacker even if they came off as normal during the interview.

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In a bad way or a good way?? This seems fine lol

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The consensus seems to be that since it’s no longer frowned upon to jump around, they don’t want to invest in training anyone new only to have them leave.

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New hires aren’t familiar with internal processes, culture, expectations

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“Better the good employee you know”

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@P1, at this level of depth of training, I start to see the practical need for employment contracts for good associates. Otherwise under the existing at-will model I believe all associates at all big firms operate under, they can walk at any time.

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No, of course - the point of notice periods isn’t to be a barrier to quitting (not sure how/why it would be) but a less “cliff-edge” transition from one associate to the wider team/new associate (if you manage to get them in time).

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At a minimum, headhunting fees and time spent interviewing. Let alone the loss of institutional knowledge, the ramp up period, and the possibility the replacement really doesn't work out.

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