When to turn flexible legal capacity into a permanent role
The Goodlawyer Team
Convert flexible legal capacity into a permanent role when the work has become steady, the role is clear, the fit is proven, and a permanent hire would cost less or deliver more than staying flexible. Do not convert only because the lawyer is good or because a deadline is near. Use a review at a fixed point to decide, and read the conversion terms in your agreement before you need them.
Signals that point to a permanent role
- Sustained demand. The workload has been stable at a level that fills a role for several consecutive months, not just in a busy quarter.
- A defined role. You can write the job description from what the lawyer actually does, and it includes recurring decisions.
- Proven fit. The lawyer works well with the team and stakeholders, and the business relies on them.
- Knowledge that matters. The context they have built is valuable and costly to rebuild.
- Cost works. The total cost of a permanent hire, including benefits and management, is lower than continuing at the current volume, or the value is higher.
- Appetite. The lawyer wants a permanent role, and your organization can offer one.
- Budget and headcount approval. You have approval, not just intention.
Signals that do not
- A spike. A one-off project or leave cover that is ending.
- Uncertain volume. Demand moves up and down, and flexible capacity fits it better.
- A skills gap that is narrow. A specialist need may be better served by a specialist, not a generalist hire.
- Fear of losing the person. That is a retention problem to solve some other way, perhaps with a longer engagement.
- Planning changes ahead. A pending restructuring or sale.
| Role is still unclear | Role is well defined | |
|---|---|---|
| Demand is variable | Keep learning Use a scoped engagement to understand the work. | Keep flexibility Match the known role to the capacity actually needed. |
| Demand is steady | Clarify the mandate Resolve ownership and responsibilities before hiring. | Assess a permanent hire Compare full costs, fit, interest and headcount approval. |
Steady demand and a clear role support the case. Budget, fit and the lawyer’s interest still need to align.
A simple decision test
Answer these four questions in writing.
- For the last six months, how many days a month did the work require, and what range?
- Which work would continue if the lawyer left?
- What would a permanent role cost in full, and what do you pay now?
- What is the risk of each choice: converting too early, or waiting too long?
If the work fills at least a role's worth of time, most months, and the answers to the other questions favour converting, begin the process. If the numbers are close, extend the flexible arrangement and review again in a quarter.
Check the conversion terms
The terms vary by provider and by agreement. Read yours for:
- Whether a conversion fee applies, how it is calculated and whether it changes over time
- Any notice period or restriction on hiring the lawyer directly
- Whether the lawyer must agree, and what happens to the engagement
- Start dates and transition of work
- Any non-solicit or exclusivity terms
If you hire your Fractional InHouse lawyer permanently, our conversion fee decreases with time in the engagement. Confirm the applicable fee and transition terms in your agreement before you sign.
What conversion can look like
Clio’s fractional lawyer became a full-time team member after working as an independent senior contributor. The arrangement gave the team a chance to assess the fit through actual work. Use your own workload, budget and the lawyer’s interest to decide whether conversion makes sense.
If you decide to convert
- Talk to the lawyer first, and confirm they want the role and agree terms.
- Write the job description and level, and get approvals.
- Confirm the conversion terms with the provider and give any required notice.
- Plan the transition: start date, work handover and what happens to remaining flexible capacity.
- Set goals for the first ninety days.
If you decide not to convert
- Extend, reduce or change the engagement to match the work.
- Document the knowledge so it is not tied to one person.
- Set the next review date.
- Consider adding permanent capacity for the steady part and keeping flexible capacity for peaks.
Checklist
- Six months of demand recorded
- Role description written
- Cost comparison complete
- Conversion terms read and confirmed
- Lawyer's interest confirmed
- Budget and headcount approved
- Transition plan drafted
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