Historically, human resources has been a necessary but costly back-office function. But today, HR’s ability to drive value in professional services industries — including legal — should not be underestimated. To harness the critical skills and key capabilities needed for the future, firms that recognize their people as strategic assets can optimize operations, elevate employee and client experiences, and deliver competitive advantages.
Firms committed to making employees valued assets are investing in strategic HR programs and technology platforms supporting advancements. These programs focus on developing employee skills, fostering a positive work environment and promoting employee well-being. They also leverage tools functioning as a conduit between key people, financial, experiential and operational data that are not a burden to use. This is the essence of human capital management (HCM).
Successful law firm HCM programs have several things in common, starting with a clear alignment between HCM strategy and overall business strategy. HCM programs should be designed to support the firm’s overall goals and objectives and include:
- A commitment to a positive and inclusive work environment valuing diversity, equity and inclusion (DEI).
- A strong focus on employee development, including investment in training employees in new skills to grow their careers.
- Tools that facilitate connectivity with the broader firm technology landscape.
HCM systems are becoming increasingly important in professional services. Law firms can leverage them as value drivers, rather than mere line items within a technology budget.
BUSINESS PROCESSES AND STANDARDIZATION
Law firms operate within a complex ecosystem of projects, teams and clients with success hinging on efficient processes, which can be a challenge given the variety of projects and personnel in the legal environment. HCM systems offer a methodical approach to streamlining HR processes such as recruitment, onboarding, performance management and resource allocation.
“To deliver return on investment, an HCM system must be fully integrated and embraced throughout the firm as a critical tool for improving outcomes. And it must seamlessly work with other platforms to ensure continuity and interoperability.”
By automating and standardizing these processes across the organization, firms can achieve several benefits, including scalability as the firm grows or takes on more complex projects; efficiency, as reduced administrative overheads will allow an HR team to focus on more strategic initiatives; and more straightforward compliance with regulatory requirements.
