The rise of “The Great Resignation” has permeated the legal industry. Even before the pandemic, law firms had issues with employee retention. The Great Resignation is a term coined for dissatisfied workers who have had enough during the pandemic and lockdown restrictions and are quitting in droves.
According to the ABA Journal, the average associate attrition rate in US Law Firms was 16% before 2020. In a recent report spearheaded by Leopard Solutions, the attrition rate is now at 27% which poses a legitimate problem that law firms have to face head-on before it gets worse.
Another troubling statistic from this report is that junior associates who have decided to leave their existing law firms are leaving the practice altogether and moving on to different ventures. This is a testament to the amount of burnout and work-life imbalance that comes with working in law firms.
The knee-jerk reaction of U.S. Law Firms to counter the Great Resignation issue is to bump up the compensation to attract associates to their law firm. But with a new awareness that the workplace employees have, compensation and benefits are not on their top minds. A lot of employees in the law industry are looking for work-life balance and being valued for the type of work that they are doing.
There is no denying that work in law offices can be demanding. This can lead to underperformance, burnout, and feelings of being undervalued for the work that they have done.
With this in mind, focusing on innovation is one way that US Law Firms can increase employee retention.
How can Innovation Help with Employee Retention in Law Firms?
Law firms that are using archaic and traditional methods of work mean that they are putting more manual work in the hands of associates. This type of work can be repetitive, tedious, and time-consuming which can lead to burnout. It will make associates question whether what they are doing has an impact on the organization and this can lead to job disengagement.
By automating processes in U.S. Law Firms, you can free up more time for associates to be doing more important and impactful work that they can take pride in. It will increase employee morale because the associates will realize the impact of their work and enable them to see the bigger picture of their role in the law firm.
When your law firm utilizes innovation, this also means that you genuinely care for your employee’s well-being by not assigning them small tasks that can be effectively automated. You will also free up time in the associate’s work hours which can lead to a better work-life balance.
Entity Management Software
When you utilize entity management software in your law firm, it enables a lot of different manual tasks to be effectively automated so you don’t have to pay someone to do them manually. These types of software can help with auditing, compliance, and transactions. An entity management software can also help with consolidating ownership, governance, tax, and compliance all in one single platform that is accessible within any location because it is cloud-based.
By having a centralized location, your law firm will run smoothly because it can replace old solutions with a modern software system that can help you communicate effectively with clients, vendors, shareholders, and the government.
The Benefits
Law firms are usually seen as very traditional with old record-keeping processes that are time-consuming and often wasteful of physical space. Within this industry, there is pressure to keep up with technological trends because it can lead to having a competitive advantage over other firms.
The push for technological advancement in law firms’ data documentation is stronger than ever because it increases transparency and accountability. US Law firms that do not have a centralized entity management software will have associates and paralegals frustrated with the system because it will lead to more work and lead employee dissatisfaction.
Automating a lot of the manual processes will free up time for your associates and paralegal to tackle more important tasks and allow increased time to spend meeting with clients. This will eventually lead to an increase in the return on investment.
One of the main benefits of using entity management software for employee retention in law firms is that it promotes a collaborative workspace. The collaboration will boost employee morale because they will feel that their thoughts and ideas are being shared and appreciated.
Another main benefit of using entity management software is that it is 100% cloud-based which means that your employees do not necessarily have to report to the office which can enable remote or hybrid workplaces.
There is also a task manager feature that enables users to see upcoming deadlines and set up reminders and tasks to meet the deadline. This ensures that everybody is on the same page and that high visibility is being practiced.
Legal teams are constantly frustrated with the presence of inefficient technology in their law firms and having an outdated system in place will negatively affect your revenues. The best way to increase ROI is to have entity management software that will allow legal teams to use the technology and collaborate effectively.
Entity Management Software for Your U.S. Law Firm
Finding the right entity management software for your US Law Firm is imperative because you need a system that will help you automate manual processes that can contribute positively to employee retention. With Athennian, you can rest assured that our software is technologically-advanced and will enable you to free up time from performing manual tasks.
If you are looking for entity management software, you can request a customized demo with an entity management expert. Contact Athennian today so that you can see for yourself the different benefits that come with innovating your law firm and increasing employee retention by doing so.
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