Latest / Wealthy Woman Lawyer Podcast, Helping you create a profitable, sustainable law firm you love / Episode 339 | The Hiring Mistake That Costs Six-Figure Firms a Year of Growth

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Episode 339 | The Hiring Mistake That Costs Six-Figure Firms a Year of Growth · Wealthy Woman Lawyer Podcast, Helping you create a profitable, sustainable law firm you love

• 0:01
  Intro: Welcome to the Wealthy Woman Lawyer Podcast. What if you could hang out with successful women lawyers, ask them about growing their firms, managing resources like time, team, and systems, mastering money issues, and more? Then take an insight or two to help you build a wealth generating law firm. Each week, your host, Devina Frederick, takes an in-depth look at how to think like a CEO, attract clients who you love to serve and will pay you on time, and create a profitable, sustainable firm you love. Devina is founder and CEO of Wealthy Woman Lawyer, and her goal is to give you the information you need to scale your law firm business from 6 to 7 figures in gross annual revenue so you can fully fund and still have time to enjoy the lifestyle of your dreams.
• 0:47
  Now here's Davina.
• 0:49
  Davina: It is Sunday night. You are sitting at your desk in the home office. The one you said would just be temporary when you started the firm, the one that still has a stack of files from a case you closed eight months ago. You are reviewing the week ahead, and you are doing what you always do on Sunday nights, running the mental tape of everything that needs to happen, everyone who needs to be managed, every task that is supposed to belong to someone else but will end up back on your plate by Wednesday. And as you go through the week in your mind, you land on her, your newest hire, the one you brought on six months ago, the one you were so relieved to bring on because you were drowning and she was available and she seemed capable enough and you needed someone now six months later.
• 1:37
  She still cannot run a client consultation without you. She still needs you to answer questions that should have been answered in her first week, and you have found yourself doing a version of what you swore you would stop doing. You are redoing her work. You are covering her gaps. You are telling yourself you just need to train her better.
• 1:58
  But really, who's got the time for that? Of all those thoughts, one has probably never occurred to you. I know it never occurred to me when I owned my first law firm. When you thought you were making a hiring decision six months ago, you really weren't. You were making a rescue decision, and that is a completely different thing with completely different consequences.
• 2:20
  Welcome to the Wealthy Woman Lawyer Podcast. I am your host, Attorney Devina Frederick, and I am so glad you are here with me today because today we are naming something that most women law firm owners I know will recognize instantly, though almost none of you have ever said it aloud. Today, we are talking about the hiring mistake that costs 6 figure law firms a year of growth. Once I walk you through what it looks like, I think you'll understand exactly why. Let's get into it.
• 2:50
  If you listened to Episode three thirty four, The Delegation Dilemma, you heard me talk about the internal habit that keeps high achieving women law firm owners stuck in the bottleneck of their own businesses. The habit of holding on. The habit of believing that if you want it done right, you must do it yourself. The habit that sounds like competence but functions like a ceiling. This episode is the natural next step in that conversation because here is what happens after you finally decide to let go and bring someone in to help.
• 3:27
  You are already behind the eight ball and need to hire ASAP. Most law firm owners I work with believe they have a team problem. They have cycled through staff. They have hired and rehired the same role. They have promoted someone internally who was not ready or right for the job.
• 3:46
  They've brought in someone externally who seemed great in the interview and struggled from day one. And they have concluded that good people are just hard to find. However, most of the time, it is not a people problem it is a process problem. Specifically, it is a hiring when desperate problem. When you hire from a place of overwhelm and desperation, when the trigger for the hire is relief, not strategy, you're not actually making a hiring decision, you're making a pain management decision.
• 4:18
  And those two things produce very different results. A strategic hire asks, What does this firm need in six months? What does it need a year from now? What type of person needs to be in this role? A reactive hire asks one question only, Can you start Monday?
• 4:35
  And here is the cost of getting that wrong. Across the firms I have worked with, the pattern is remarkably consistent. It takes about three to six months to recognize that the hire is not working out, another two to three months to manage through it, the difficult conversations, the performance improvement plan, the decision to part ways, and then another two to three months to rehire the role and get the new person ramped up. Do the math. A single reactive hire can set your firm's growth clock back by a full year, not because the person was terrible, not because you are a bad manager, because the decision was made from a place of desiring relief, not from a place of clarity.
• 5:16
  And the cruel irony is this, you made the hire because you were overwhelmed. And a year later, you likely feel more overwhelmed because now you are managing the fallout of a decision you made when you had nothing left in the tank. You may have even taken on more cases because you felt you had expanded your firm's capacity. You've gotten used to not doing some tasks because this person, even though they weren't great, at least did a few things right. Other team members, if you have them, feel discouraged and worried for their jobs.
• 5:48
  And now it feels like you are back to square one. So, let's unpack all of this so you can begin making hiring decisions from a place of strength. In my work with women law firm owners at the 6 figure ceiling, I have come to recognize three distinct reactive hiring patterns. They show up repeatedly across different practice areas, different markets, and different firm sizes. And each one has its own flavor, its own internal logic that makes it feel reasonable at the time, and its own specific way of stalling your growth.
• 6:22
  Okay. Here we go. Pattern number one is the clone hire. The clone hire is exactly what it sounds like. You hire someone exactly like you, someone with your background, your work ethic, your way of thinking, someone who you would not have to explain everything to because they already get it the way you get it.
• 6:42
  This hire feels brilliant at first. The onboarding is fast. The communication is easy. You are not managing gaps in understanding because this person just thinks the way you think. But it's not so brilliant when you realize you simply added a second bottleneck.
• 6:58
  The skills you have in abundance, analytical mind, client facing confidence, ability to hold a complex matter together in your head, those are not the skills your firm is missing right now. If you were the bottleneck before, you are still the bottleneck. Now you just have someone standing next to you who is very good at watching you be the bottleneck. The clone hire produces zero scalability. It produces a firm that grows in volume but not in capacity.
• 7:27
  You are twice as busy and no freer than you were before. A firm that scales needs people who do things differently from you. You need people who fill the gaps you create, not people who duplicate what you are already excellent at, especially when you have a small firm. The clone hire is comfortable and easy because who doesn't love to be around people who are just like us? I've made this mistake myself, which is why I always outsource hiring now.
• 7:56
  I know I will be drawn to people who are more like me and less to people with different personalities, but likely to people with skill sets I really, really need. This might be the case if you've hired someone who becomes your work bestie, but now instead of you working fewer hours in the business, both of you are working at full capacity and both are feeling overwhelmed. Pattern number two is the warm body hire. Some of you may not have ever hired a clone of yourself, but I can almost guarantee that if you are listening to this now, you have, at some point or another, hired a warm body because this is the most common refrain I hear from women law firm owners, We just need a warm body. The warm body hire is the hire you make because someone was available.
• 8:43
  She can start Monday. She's likely a friend of a friend. She needs a job, and you just happen to have a job. Maybe she has relevant experience, but maybe not. And you are so deep in it right now that close enough is the standard.
• 8:57
  If you have made this mistake, I assure you that you are far from the only one. I know many highly intelligent, deeply capable women who have made it repeatedly. Because when you are running on empty, the cost of waiting to find the right person feels higher than the cost of just getting someone in the seat. But what you are actually doing is solving this week's problem at the expense of next year's ceiling. The Warm Body hire solves for availability.
• 9:23
  It does not solve for capability. It does not solve for growth. It does not solve for the outcome the role really needs to own. And six months in, you have a team member who is keeping the lights on and a firm that is not growing because the hire was not built to move the firm forward. She was hired to take on your overflow.
• 9:45
  Overflow management is not the same as capacity building, and you will feel that difference every single week. The warm body hire provides relief for two weeks and potentially a ceiling for years. Here's the one that is going to sit with you. Pattern number three is the loyalty hire. The loyalty hire is when you promote or bring on someone, not because the role calls for their particular skill set, but because they have been with you for a long time, because they show up reliably, because they worked hard, because they are loyal and you believe loyalty should be rewarded.
• 10:22
  Look, I get it. Loyalty is highly valuable, as is reliability. I am not asking you to pretend otherwise. But loyalty is not a qualification. And putting someone in a role that requires capabilities they do not possess, no matter how much you care about them, no matter how long they have been with you, not serve them or the law firm.
• 10:46
  This might look like promoting a long time right hand paralegal to senior paralegal with oversight of all the other paralegals, but she's not cut out for management even if you invest in management training for her. The loyalty hire is the hardest one to undo because the stakes are personal, not just professional. When you need to move someone out of a role they cannot do well, you are not just navigating a business decision, you are navigating an important relationship. And for many of the women I work with, that emotional weight is what keeps them from acting for months, sometimes years, longer than they should. Meanwhile, the firm and perhaps other team members absorbs the cost.
• 11:28
  In the time it takes to face that conversation, the growth that was possible has slipped by. The hire that could have moved the needle never got made. The most respectful thing you can do for someone you value is to put them in a role where they can succeed. If that role exists in your firm, great. If it does not, the kindest thing you can do for both of you is to be honest about that, sooner rather than later.
• 11:53
  Now think back to your last few hires or perhaps that one associate you hired who did not work out and consider these three patterns. Do any of them apply to your decisions? So now that we have defined what reactive hiring looks like, let me share what the alternative looks like, what it means to hire like a CEO instead of an overwhelmed, overworked lawyer. Before I do, I wanna add that I think hiring is the most consequential decision a law firm owner makes. More consequential than your marketing strategy, more consequential than your pricing model, more consequential than your office space, your technology stack, or your social media presence.
• 12:36
  Because your team is the mechanism by which everything else either scales or stalls, the right hire multiplies you, the wrong hire adds to your stress. Here is what CEO level hiring looks like in practice. Step one Create a hiring system that works on repeat. Stop recreating the wheel every time you hire. Be proactive by documenting and implementing your hiring system.
• 13:02
  We teach you exactly how to do this in our Wealthy Woman Lawyer Mastery program if you aren't sure where to start. Step two, hire one role ahead. Consider the role the firm needs filled six months from now, not just the one right in front of you that you are desperate to fill. I know what you were thinking. Devina, if I could afford to wait six months, I would not be making a hire right now.
• 13:26
  I hear you, and here is what I want you to consider. The desperation you feel in this moment is data. It is telling you something about where the gaps are, but it is not a reliable guide to the solution. When you hire for the law firm you are trying to build, not the fire you are trying to put out, you stop adding people who manage your overwhelm and start adding people who own outcomes. That is a fundamentally different category of employee and it produces a fundamentally different result.
• 14:00
  Step three: Define the role by the desired outcome, not the tasks it absorbs. The role description does not start with a list of tasks. It starts with a question. What does this role exist to produce? For example, if you are hiring a client care specialist, the outcome might be, Every prospective client has a stellar first experience, and no lead falls through the cracks.
• 14:24
  The tasks flow from that outcome. The job ad is built around that outcome. The interview process is designed to assess whether this candidate can own that outcome. When you define a role by tasks, you attract people who are good at following instructions, which means they may never develop the critical thinking skills your firm requires. When you define a role by outcomes, you attract people who are capable of owning something.
• 14:52
  At the level of the firm you are building, you need people who can take ownership, not people who wait for step by step instructions. Step four: The candidate's job in the interview is to demonstrate to you that they can run something, not just do something. Your interview process should be designed to reveal one skill above all others. Has this person ever taken ownership of a case, a project, or a matter and seen it through to its best outcome? Not, can she answer your questions politely?
• 15:24
  Does she seem like a hard worker? Is she someone you would enjoy having around? Don't get me wrong. All of those conditions matter. None of them is sufficient on its own.
• 15:34
  Ask questions that require evidence. Questions like, Tell me about a time you identified a problem no one had asked you to solve and what you did about it. Walk me through a project you own from start to finish. What broke along the way, and how did you handle it? What would your last manager say was the biggest area you needed to grow in?
• 15:55
  You are listening for specificity, accountability, and evidence of initiative. Because the people who can grow with your firm are the people who have already demonstrated the habit of running projects. This is not something you can teach in the first ninety days. It's a skill them need to bring with them. Step four, pay for the capability you can grow into, not the capacity you have already outgrown.
• 16:21
  This is the mindset shift that separates the firms that reach 7 figures from those that hover just below it. When you are in survival mode, every hire is evaluated through a cost lens. What is the minimum I need to pay to fill this role? And I understand why. Cash flow is real.
• 16:39
  Overhead is real. The fear of overcommitting is real. But if you hire the minimum every time, you will only reap the minimum. A minimum team cannot take you to a maximum firm. The hire who costs a little more but can grow with you for three years, who can take on more responsibility as the firm grows, who does not become obsolete when you reach the next level, that hire is a fraction of the cost of three reactive hires at lower rates that all had to be replaced within eighteen months.
• 17:11
  Invest in capability. The capacity will follow. I wanna tell you about a composite story, a woman I will call Maya. And when I say composite, I mean she is built from patterns I have seen in multiple firms across multiple practice areas over many years of this work. She is not one person.
• 17:30
  She is many. Maya owns a family law firm. She grossed about $550,000 two years ago and was convinced she was on her way to 7 figures. She had momentum. She had energy.
• 17:43
  She was ready to scale. In the eighteen months that followed, she made three hires. The first was a paralegal she brought on in a panic after losing her most senior staff member unexpectedly. Available, willing, and cheaper than she expected. Warm body.
• 18:01
  The paralegal left after five months because the role was not what she was told it would be, as it had not been defined before it was posted. The second was an associate attorney, someone who had clerked for a judge and had a polished resume and interviewed beautifully. But the firm had no clear accountability for what the associate was supposed to produce, and no way to measure whether it was working. Six months in, Maya was still reviewing and often redoing every single thing the associate touched. The associate was frustrated.
• 18:34
  Maya was exhausted. They parted ways after nine months. The third hire was her office manager's cousin who needed a job, was great with clients, and had done admin work before, loyalty hire, the relationship made it impossible to have hard conversations. Eight months in, the role had expanded into a shapeless collection of tasks that no one else wanted to do, and shrunk the cousin down to someone who was checking boxes, not owning outcomes. At the end of those eighteen months, Maya had a bigger team than when she started.
• 19:09
  She also had lower revenue, lower margins, and lower energy than she had felt in years. The team grew, the firm did not, because growth without architecture is not growth. It is just an expansion. And expansion without intention always costs more than it produces. Maya is not the exception.
• 19:29
  She is not a cautionary tale because she made unusual mistakes. She is a cautionary tale because she made the most common mistakes there are, the ones that feel reasonable in the moment and devastating twelve months later. The question is not whether you have made some version of these mistakes. Most of you have. The question is, what do you do differently from here?
• 19:54
  So here's what I want to leave you with today. Hiring is the most consequential CEO decision a law firm owner makes, and it deserves the same rigor, clarity, and intentionality as taking on a major client matter, if not more. You would not accept a case without understanding the desired outcome. You would not commit your firm's resources to a matter without understanding the scope, the fit, and the risk. You would not bring on a high stakes client in a moment of panic just because they were available.
• 20:25
  Do not hire that way either. The next time you feel the urge to post a job ad because you are overwhelmed, pause. Ask yourself, Am I making a hiring decision right now or a rescue decision? A rescue decision solves for this week. A hiring decision builds for now and the future.
• 20:44
  The firm you want to be running twelve months from now is being built by the decisions you make in the next ninety days, especially the hiring decisions. Make them like a CEO, not like someone who is drowning. If this episode hit home, I want you to know that what you are experiencing is not a character flaw. It is a CEO development gap, and that gap is fixable. This is exactly the work we do inside the Wealthy Woman Lawyer Mastery program.
• 21:13
  Mastery is designed specifically for women law firm owners with revenue between 6 and 7 figures who keep hitting the same ceiling. Inside the program, we do deep work on leadership and team architecture, how to define roles by outcomes, how to build an interview process that reveals real capability, how to create the accountability structures that let your team run things without you running everything. This is how you build a firm that does not require you to be everywhere at once. This is how you hire with clarity instead of desperation. This is how you stop starting over every year and start building forward.
• 21:54
  And if you are ready to stop hiring from a place of overwhelm and start building a team that scales with you, I wanna talk with you. Head to wealthywomanlawyer.com and click the apply button to book a call. We will talk about where your firm is right now, where you want it to go, and whether the mastery program is the right fit for you and your firm. The link is in the show notes as well. Thank you for spending this time with me today.
• 22:19
  If this episode gave you something to think about, I wanna ask you to do one thing, share it. Send it to the woman in your network who is working too hard and wondering why her team is not working the way she needs it to. Text it to a colleague who you know is stuck at the same ceiling. Leave a review on Apple Podcasts if you have not already, as it helps more women law firm owners find this show, and that matters to me. I am Devina Frederick, and this has been the Wealthy Woman Lawyer Podcast.
• 22:50
  Intro: If you're ready to create more of what you truly desire in your business and your life, then you'll want to visit us wealthywomanlawyer.com to learn more about how we help our clients create wealth generating law firms with ease.