According to the legal press, more than 1,300 legal jobs were lost in January of 2009; an additional 1,100 were lost by the end of Friday, February 13th. Every day we read about layoffs at another AmLaw 500 Firm or hear rumors of large numbers of performance terminations at others. It is enough to discourage the most motivated job seeker.
Although the number of jobs at big law firms make up less than 20% of the legal job market, they have historically established the paradigm for recruiting—and now for layoffs—which people assume applies to the other 80% of the market. It does not. The problem with the other 80% of the market is that there is no paradigm; that is, there is no systematic, linear approach for recruiting or terminations that work in every situation. This leads to the illusion that there are no opportunities for recently unemployed lawyers and escalates the anxiety of everyone involved in the process. However, it is not true. There are jobs. Small firms, government entities and businesses are still hiring. The challenge is helping newly unemployed attorneys learn how to find those opportunities and, more importantly, how to maintain a positive mental attitude throughout the process.
Being associated with a particular firm or organization can be such an important part of a person’s life. Termination creates a tremendous sense of loss of structure and identity. Attorneys may also feel embarrassed, angry and betrayed even if they are told they are being let go for economic reasons. The financial blow can be equally devastating.
How The News Is Delivered Makes A Crucial Difference
Whether terminations at your organization are performance based or economically motivated, firm administrators can play a critical role in facilitating the process especially if no outplacement services are provided. Armed with a well-organized departure checklist coordinating the administrative tasks, legal administrators ensure termination guidelines and policies are implemented consistently to mitigate the possibility of legal actions against the firm. Administrators can also help manage the turmoil experienced by everyone involved in the process.
For example, consider how the termination message is delivered. Try to create an environment that will make it as easy as possible for the person receiving the news to maintain a sense of pride and dignity.
Create A Detailed Written Termination Document
In preparation for delivering the message, create a document outlining all the salient points to be discussed to ensure that the conversation stays on point. It should be handed to the associate at the end of the meeting for him or her to take home to review. Keep in mind that once associates hear, “We are letting you go,” they hear little else in the conversation. Having this document will reinforce what they have been told and will help avert confusion, misunderstandings and hard feelings, which can damage the firm’s reputation in the marketplace.
The document should inform the associate for how long he or she will be paid and covered by benefits. The timeframe can vary by seniority and/or length of service. Be clear about whether or not former employees are permitted to use any outstanding vacation time to extend their time on payroll and if not, how they will be compensated for that earned time. Be sure to distinguish between “time paid through” and “severance.” If the firm plans to pay through June 30th, be sure to indicate “up until June 30th or until you begin new employment, whichever comes first.” That is different from “three months severance” which an employer would pay in cash, no matter when the associate begins a new position.
Billable hour expectations must be clearly delineated. Typically, in an attempt to be discreet, not everyone is informed when an associate has been given a departure date. Unknowing partners may continue to assign work. In some instances, partners who do know believe that as long as the firm is paying a salary, the associate should continue billing. Either scenario sends a mixed message to terminated associates. Sometimes, they think, “If I work really hard, they will change their mind.” Or they may just simply be kept too busy to look for another position. Once an associate has been given a departure day, it is in everyone’s best interest to have the person focus on finding new employment. Be clear about the firm’s expectations. Given the tight timeframes most associates are working within in this difficult economy, sending mixed messages will cause undue hard feelings and ultimately hurt the firm’s reputation.
Set the parameters for office space and secretarial support. This is particularly important for more senior attorneys. How long can they remain in their regular offices? Are they free to conduct a job search using firm resources? Can they have access to an office, voicemail or e-mail after their termination date? It is important to build flexibility into the policy to accommodate reasonable requests for assistance. However, always be mindful that anytime you drift from the policy you are setting a precedent.
Anticipate Reactions And Have Coping Strategies Prepared
Two people should deliver the message, preferably later in the day. Coach the messengers to walk the associate through the prepared written document outlining as many details as possible. Remind them to use a calm, factual, non-threatening tone and prepare them for any number of reactions:
1) Denial and withdrawal. The employee may react by not reacting.
Strategy: State the message clearly and succinctly. Resist the urge to fill the silence with more explanations. End with, “Do you have any questions?” If the employee still says nothing, stand up (indicating the meeting is over) and say, “If you think of anything over the next couple of days, let me know.”
2) Anger. The person may react by trying to engage you in an argument, claiming unfair treatment, etc.
Strategy: Do not engage in an argument. Let the employee vent and simply say, “I am sorry you feel that way.” If you believe the person may become violent, make sure security is informed of the meeting place and time. You may also want to consider having a professionally trained outplacement counselor on hand to help manage emotions.
3) Bargaining. The person may promise to do better or work harder, or try to explain away the poor performance by sharing a personal issue to evoke pity, desperately trying to get you to reverse the decision.
Strategy: Stop the person quickly and firmly by stating that the decision is final.
Finally, consider the firm’s position regarding references before delivering the termination message. What is the firm willing/able to say to support the employee’s future candidacy? Is there anything positive that can be said without lying? It may be helpful to try to deflect the question until the employee has had some chance to consider job options. For example, it may be easier to find something positive to say if the employee is transitioning to a different practice area or type of organization.
Professionals Can Help During The Transition To Termination
The time between receiving the message and the final day of employment is awkward for everyone. Those who know may feel bad and unsure what to say to the associate, avoiding eye contact and conversations which unwittingly ostracizes the person. In some cases, the associate continues to come to the office each day, but has no work to do and is constantly looking over his shoulder wondering who knows what.
An effective career counselor can help associates sort thorough this emotional quagmire, providing them with perspective and coping strategies as well as customized approaches to their job search. Law firms that invest financial resources to outplacement services make the transition smoother not only for the associate, but also the firm.
Legal administrators can also help mitigate the tensions by dealing directly with the associate, gently reinforcing the message, acknowledging the awkwardness and providing a safe place for the associate to address questions and concerns.