For many solopreneurs and small law firms, managing the costs and logistics of full-time staff can be overwhelming. Hiring a full-time employee involves multiple considerations, from workload management to training and loyalty concerns. By leveraging a virtual team of legal writers, you can significantly reduce expenses while maximizing efficiency and flexibility. Here’s why outsourcing to freelance attorneys is a smart choice for your legal practice.
The Challenges of Hiring Full-Time Staff
When considering full-time staff, there are several factors to keep in mind:
Workload Management:
- Do you have enough work to keep them busy full-time now and in the future?
Experience and Training:
- Is their experience sufficient to be valuable immediately, or will they require additional training?
Employee Goals:
- Are they looking to be the workhorse you need, or do they intend to build their own book of business?
Loyalty Concerns:
- Will they remain loyal, or might they take your training and start their own practice?
Cost:
- Can you afford a full-time employee?
For solopreneurs and small firms, the financial burden of full-time staff can be particularly challenging. Utilizing freelance lawyers allows you to avoid these expenses and complexities.
The Cost of Recruiting
Recruiting qualified candidates can be costly and time-consuming. Unless you find the perfect candidate right away, you’ll likely need to invest in a recruiter or staffing agency, which can charge 25-50% of the lawyer’s first-year salary. According to Staffing Industry Analysts, Inc., the U.S. legal staffing industry is a $1 billion+ market.
When calculating recruitment costs, consider the time and money spent on:
- Posting ads
- Reviewing resumes
- Interviewing candidates
- Negotiating offers
This can amount to 15-40 hours of work at $400 per hour, totaling $6,000-$16,000, plus additional hard costs.
Salary Expectations
Entry-level lawyer salaries in the U.S. can range from $65,000 to $120,000, with larger firms paying up to $190,000. Factors such as location and experience play significant roles in determining salary levels.
Employment Taxes
In addition to salaries, employers are responsible for covering various employment taxes, including:
- Social Security/FICA
- Unemployment/FUTA
- Medicare
- State unemployment taxes
- Worker’s compensation premiums
Employee Benefits
Employees typically expect benefits such as health insurance, life insurance, disability, and retirement plans. According to the U.S. Bureau of Labor Statistics (September 2019), employers spend an average of $11.60 per hour per employee on benefits, or $24,128 annually. This means a $65,000 associate could cost over $90,000 after adding benefits and taxes.
Space, Equipment, and Administrative Support
Full-time employees need the right tools to work, including office space, furniture, computers, phones, and software. These costs, combined with salaries, taxes, and benefits, add up quickly.
Professional Dues and Insurance
Maintaining a professional legal team involves additional costs for malpractice insurance, state bar dues, local bar association fees, and continuing legal education.
Training Costs
Hiring a new associate means investing time in training, which is time you’re not billing clients. This can lead to significant opportunity costs for your practice.
The Advantages of Outsourcing to Virtual Legal Writers
Outsourcing to virtual legal writers offers numerous benefits, especially for solopreneurs and small firms:
- Cost Savings: Avoid the high costs of full-time employees, including salaries, benefits, taxes, and overhead.
- Flexibility: Work with as many or as few freelance attorneys as needed, adjusting your team size based on current workload.
- Specialization: Access a diverse pool of experienced legal writers with specialized skills tailored to your needs.
- Efficiency: Reduce the time and effort spent on recruiting, training, and managing full-time staff.
By forming a virtual team of legal writers, you can ensure that you have the experienced staff needed to handle more cases and larger cases without the expense and restrictions of full-time employees. Focus on maximizing your profits and growing your business with the support of a flexible, on-demand workforce.
About Cardam Legal: Cardam Legal specializes in providing expert legal writing services to law firms. Our team of experienced virtual legal writers ensures high-quality, efficient, and cost-effective solutions for your legal needs. Contact us today to learn more about how we can support your firm’s growth and success.
