Managing People

Managing people is an important aspect of risk management in the legal profession. It is important for a firm to manage its recruitment, employment and even termination processes, to ensure that risk arising from human error and human action is kept to a minimum.

Recruitment

1. Prior to confirming employment or partnership, it is important that a firm obtain written references.
2. Enquiries should be made on medical history and followed-up if necessary.
3. Every potential partner should undergo a full health check and have their suitability for appointment confirmed by a doctor.
4. Every staff should receive a signed employment contract and a partner, a signed partnership deed, or in the case of a Law Corporation, a shareholder’s agreement.
5. There must be a written job description setting out:
   • the reporting structure;
   • skills and competencies required;
   • knowledge required;
   • experience required; and
   • clear limits of authority.
6. The firm should have an induction programme, which covers details of the firm’s policies and procedures.
   

During Employment

1. The firm should set performance targets only with the agreement of the person to whom they apply.
2. There must be at least one formal performance appraisal a year.
3. In respect of their subordinates, supervisors should be aware of:
   
   • career aspirations;
   • need for training;
   • any changes in personal circumstances; and
   • any matters which may have affected past work or is likely to affect future work performance.
     
4. Staff morale ought to managed by:
   
   • encouraging staff to discuss problems relating to their work, environment and their personal circumstances;
   • maintaining records of incidences of: (a) sickness; (b) absenteeism; (c) lateness; and (d) under performance; and
   • partners being aware of the key signs of: (a) stress; (b) depression; and (c) alcoholism or substance abuse.
     

Resignation

Exit interviews should be conducted to assess:

1. Aspects about the firm that may have caused dissatisfaction, especially if they indicate operational risk, eg poor management of a department.
2. The possibility that the person leaving may not have been fully concentrating on his/her work prior to resignation and therefore the necessity to review files on which they have worked, for potential exposure to risk.
   

Managing people is the most difficult part of a firm’s Risk Management process, but no firm can afford to ignore this aspect, and the key lies in positive human resource policies. It may be useful to engage human resource specialists as consultants, to develop good human resource practices to ensure that the firm manages its most important asset, its people, well.

Stanley Jeremiah
Goodwins Law Corporation