It’s Christmas and Time to Fire Some Associates

Is there any better time than the holidays to talk about firing people?

Yes, I know, I’m Scrooge. Earlier this week, I rambled on about the virtues of letting people go and replacing them with machines. Here I go again.

A lawyer I met the other day has two extra lawyers. Extra lawyers?

Yes, these lawyers are scrounging around looking for work. There simply isn’t enough work for them to do.

Two things happened that led to this situation.

  1. First, the firm hired early. It found someone with outstanding credentials and an excellent personality. It hired the lawyer assuming growth would happen and it would regret passing over the candidate. It made sense in the moment.
  2. Second, things slowed down. Business goes up, and business goes down. For this firm, it’s down—not big time, but enough that some of the lawyers are twiddling their thumbs.

My Advice

What should the firm do with the extra lawyers?

Make them available to other law firms. Set them free. Let them go. Fire them!

It’s harsh, it’s ugly, and it’s unpleasant. It’s sad, it’s difficult, and it’s awful. It’s a miserable thing to do during this season of good tidings and joy.

FIRE THEM!

My Rationale

Keeping them is how we get into BIG trouble FAST.

Payroll is our biggest expense. Managing payroll is the key to getting and staying profitable. When payroll gets out of control, everything is out of control.

Just like the hip bone is connected to the leg bone, the payroll is connected to the profit. High payroll equals low profit.

It’s sad when the extra associates stop getting paid. It’s worse when you don’t get paid.

If you’ve got more people than you need, then set them free. Wish them a Merry Christmas as you push them out the door. Give them a severance payment if it makes you feel better, but say goodbye and get them off the dole.

This is a business. Treat it like one. Merry Christmas!

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