How to reward and retain top professional talent in challenging economic times

As countries around the world face the gloomy and increasingly more plausible spectre of another global economic slowdown, businesses across industries and regions will be forced to face the cold realities of how such an occurrence might adversely affect operations in 2012 and beyond. Law firms are not immune to such concerns and many will likely be undertaking similar self-assessments to determine which steps must be taken to adequately prepare for a variety of unpleasant scenarios.

Although the majority of law firms may have already endured their deepest cuts and reductions in staff several years ago during the earlier stages of the great recession, some may find that difficult choices must still be made to streamline theirorganisation. I suspect, however, that most firms will simply be intending to do more with less, a tactic so common that many business writers in recent years have dubbed it as representing the “new normal”.

Based on news reports, industry research, and the numerous conversations that I’ve had on this subject with colleagues and clients, it seems that few firms or companies are planning to make significant investments in 2012 to hire large numbers of staff, or at least they won’t be doing so until there is more certainty regarding the developing situations in Europe and in other global markets.

So where does this leave senior management, who must rely on productive and motivated employees in order to continue to demonstrate progress and growth? Now, perhaps more so than ever, it is essential to be able to retain the most talented people in your organisation. Gone are the days when the traditional levers of compensation and benefits could be pulled without raising any eyebrows. Instead, managers must now employ other non-financial tactics to reward and retain top professionals.

What follows are some additional ways to incentivise employees, specifically targeted for firms that find themselves in the dilemma described above.

1. Challenge your best workers

Key employees need to be focused primarily on work that challenges and stimulates them. I’ve found that my best people are generally motivated by interesting and complex projects, which allow them to use their minds in creative and thought-provoking ways. If possible, try to limit the number of administrative tasks on their plate.

2. Appreciate them

It sounds trite, but make sure that your top performers feel truly valued and appreciated for the efforts they make to the firm. Sharing success stories with other members of the team as well as with key members of management is an easy and free way to acknowledge the importance of the contributions made by your star employees. 

3. Protect them

It is important to offer protection from senior management when times are tough. With less people doing more of the work, it is more likely that balls will get dropped and mistakes will be made. Effective leaders will take responsibility for the team as a whole, rather than admonishing individuals who might simply be overwhelmed with an unreasonable workload.

4. Keep people accountable

Although managers should take appropriate steps to protect the team during difficult times (as noted above), it is equally important that individual members take responsibility for their actions. Some people might see this as a bit counterintuitive, but I believe that maintaining a high level of accountability within the team is actually a good way to retain and motivate your best people.

Top performers usually want and expect accountability across the broader team – if they are putting in their best effort, they often feel that other members of the team ought to be working just as hard. It can be damaging to individual morale and motivation to have weaker members reduce overall productivity without any consequences.