When to Convert a Contract Lawyer to a Permanent Employee

One of the most challenging aspects of managing a legal team is finding and retaining the right talent. Hiring decisions can have a significant impact on the performance, productivity and culture of an organization. However, traditional hiring methods can be costly, time-consuming and risky, especially in a dynamic and competitive market.

That is why many legal departments rely on consulting attorneys as a strategic way to get the work done. Contract attorneys can help legal teams handle peak workloads, fill in skill gaps or take on specific tasks that require specialized knowledge or experience. Hiring someone in a contract capacity also gives a legal team the opportunity to evaluate potential full-time hires before committing to permanent employment. By working with a qualified contractor for a defined period of time, organizations can gain valuable insights into the contract lawyer’s skills, fit and potential. This approach can reduce hiring costs, increase retention rates and improve team cohesion.

When to Start with a Contractor and then Convert

Hiring an interim attorney with the intent to convert them to full-time offers companies a flexible and low-risk way to evaluate the candidate’s skills and fit within the organization before making a permanent commitment. This “try before you buy” approach allows the company to assess not only the attorney’s legal expertise but also their adaptability to the company’s culture, their ability to handle complex cases, and their collaboration with internal teams. It is an opportunity to ensure the candidate is fully capable of managing the specific demands of the role without committing to a long-term contract from the outset.

Moreover, this model provides businesses with greater agility in managing immediate legal needs. While evaluating the interim attorney, companies can continue their search for an ideal candidate or adjust the position requirements based on evolving needs. It also reduces the financial risks and potential setbacks of hiring someone who may not be the right fit, as the interim period serves as an extended trial where both the company and the attorney can evaluate the long-term compatibility of the position. If the match is successful, the conversion to full-time becomes a seamless transition with reduced onboarding and training time.

The Benefits of Contract-to-Hire Approach

By bringing in contract attorneys and waiting to make them permanent employees, a legal team can gain insight into the contract attorney’s abilities. During the interim period, the manager can evaluate the attorney’s skills and fit within the team. They can monitor their lawyer’s work quality, productivity, communication, and collaboration and provide feedback and guidance along the way. The legal leader can also measure their impact and value on the business’s outcomes and goals, building a case for headcount. The team can also assess the contractor’s emotional intelligence and cultural compatibility, which will ultimately determine if someone may be successful in the long run. Understanding out how a candidate is aligned with the company's mission, vision, and values; how they adapt to the organizational culture and norms; and how they interact with the stakeholders and peers are important for integrating into the legal team.

The benefits of hiring a contract attorney include:

• Improving the continuity and consistency of the legal work.
• Enhancing the trust and loyalty of the new attorney.
• Reducing the risk of confidentiality breaches or conflicts of interest.
• Increasing the integration and collaboration of the contract attorneys with the legal team.

The organization can avoid the hassle and cost of rehiring, retraining and re-onboarding candidates when they hire contractors who have gained familiarity with the team, organization, and work product. The legal team can also maintain the continuity and consistency of the work and the relationships already built.

A Case Study

A global technology company was looking to expand its in-house legal team to support its growing business. They needed two experienced attorneys with expertise in commercial contracts and data privacy. However, they faced several challenges in finding and hiring the right candidates, such as:

• A tight labor market with high demand and low supply of qualified attorneys.
• A lengthy and complex hiring process that involved multiple stakeholders and approvals.
• A high turnover rate and low retention rate of new hires due to mismatched expectations and fit.

To overcome these challenges, the general counsel decided to hire two interim counsel for a six-month contract. Their goal was to use this interim period as a trial run to assess the attorneys' performance and fit and potentially convert them to full-time employees at the end of the contract.

At the end of the six-month contract, the general counsel was very satisfied with the performance and fit of the two interim counsel and decided to offer them full-time positions. They both accepted the offers, and the tech company was able to achieve its staffing goals, while saving time, money and risk. The two attorneys were able to secure stable and rewarding careers, while enjoying the flexibility of the interim experience.

Conclusion

Leveraging interim placements to convert them to full-time employees offers a low-risk, high-reward approach to building a talented and cohesive team. Legal teams should consider hiring interim counsel as full-time employees if they find that they have a long-term need for someone who can perform the tasks they are handling at a high-level that aligns with the team’s standard.