For the football fans out there last Monday was one of the most exciting days of the year. At 6pm the transfer window slammed shut, thus meaning that no footballer in Europe who is under contract is able to make a permanent move until January 2011.
Frenzied activity saw clubs up and down the country trying to secure the necessary recruits to see them through to the New Year, whether it be the star striker who arrives in a multi-million pound deal or the journeyman squad player who can cover 4 different positions in case of an injury crisis.
Many legal firms instigate a similar ‘transfer window’ system at senior level whereby partners may only resign on certain days of the year, whilst other firms hold that the contracted x months notice will be extended until the end of the financial year. If your present firm plays hardball and x takes you into a new year then don’t necessarily expect to be with your new employer at any point in the next 18 months!
The reasons that firms instigate these clauses are varied and not without merit. For some it means that capital accounts can be easily sorted out; for others it’s the stability of knowing that employees and client base can be relied on for instructions up until the end of the financial period.
Additionally firms have the ability to send employees on gardening leave, and in an industry as competitive as the law a partner sat at home under restrictive covenant is unable to influence their soon-to-be-ex-employer’s concerted efforts to retain the clients when the partner finally moves to their new firm.
However this element of control is not always a positive for the firms in question. What of the flip side? Those who watch the legal press are aware that on certain dates of the year reports will come through of particular practices losing key individuals. This does generate negative publicity for the firms who restrict partner resignations; whereas a firm losing two or three key hires over a 12 month period can attribute this to natural wastage, losing those 3 individuals all on the same day can (often wrongly) be presumed to be signs of a firm in crisis.
As legal recruiters it is essential to know which practices implement this lock-in system and also what the truth is behind the press reports. Knowing the inside track as to why individuals have moved on and even whether their loss is a concern or disappointment (or enforced!) can often make the difference when it comes to that practice successfully recruiting replacements for those departed.
Quite simply there are few partners out there who want to join a firm which is seen as being anything less than a steady ship, particularly if those partners are the equivalent of the ‘star striker’ and have their choice of practices interested in speaking to them.
So how do you sell your firm as a realistic and viable option? Transparency is usually the best policy. Chances are that the market knows about your partner’s impending departure long before they exit, so why try to hide the reasoning? Usually this involves a certain amount of reflection and soul-searching as to where you may be going wrong, but following this you will have to trust the recruiter you use to represent you to be able to communicate this effectively to potential new employees. It’s no coincidence that the firms we recruit for most successfully are the ones who can say “yes, we were at fault for this and this....but we have now held up our hands and put this and this into practice to resolve the issue.” Bear in mind that the majority of your new employees will find that their first ‘real’ contact with your firm will be through meeting a recruiter who will be painting a picture of life at the practice. Quite simply, without your recruiter telling the market that you are putting your own house in order how are you ever going to get people to come and talk to you?
And if you’re not recruiting new stars to replace those who have made a Man City-style departure to greener turf, how are you going to convince your existing staff to stay?
Well, you could try locking them in. Oh, hang on.......
Are you with a firm with a lock-in or restricted resignation policy, and keen to discuss your next move and effective exit strategy? Are you looking to make key lateral hires but concerned whether unkind publicity over your lock-in may be harming your chances of attracting the best talent? Call one of our specialist consultants at VG Charles & Co to discuss on 0121 233 5000/020 7649 9094