Legally Speaking – Legal Recruiter Blog

It’s the eternal question. Should I do what I love, money be darned, or should I go for the big bucks, idealism be darned? Just how much should money factor into your career decision? It’s a big question, one that you can’t be expected to have a ready answer for right out of school. And it’s an ever-evolving question, the answer to which will likely change throughout different stages of your life. The answer isn’t easy, but, as always, there are both practical and personal things to consider.

Choose Your Field

Different fields have different compensation standards; research average salaries for careers in your field. Typically, for example, someone in a technical or engineering field can realistically expect to make more than someone in an arts or service field. But also keep in mind that where you start doesn’t necessarily determine where you’ll finish. Your field doesn’t have to limit you. There’s creativity to be found in utilizing your individual skills to create your own unique niche. The maxim “Do what you love and the money will follow” is often true.

Leverage Your Skills

You can also leverage your skill set and passions in different ways. If you’re an English major, a future in teaching or publishing isn’t set in stone; you could use your writing skills in the communications or public relations department of a big company. If art is your passion, consider a commercially viable creative path such as graphic design. Every industry you can think of needs a whole team of people with different skill sets behind it.

Intangibles vs. Tangibles

No matter what, there are two tangible aspects of your life to which your work is undeniably tied: money and time. What you do does determine how much you earn, and how much you earn reasonably affects other aspects of your life, like how much time it will take to pay off student loans, how much you can save, how much you can afford to spend on essentials like rent and groceries, and how much you have left over for luxuries and fun. Living on less isn’t impossible, but will involve some budgeting and prioritizing. You might have to look into free or cheap fun things to do and (gasp!) learn how to cook. In terms of time, different fields require different time commitments from their employees. An investment banker far out-earns an editorial assistant, but makes up for that money working double the hours. Are you willing to put in all the hours required in a demanding position, or would you rather spend fewer hours at work and have more free time to yourself? There’s a reason they say “time is money.” If anything, time is more important than money. No one lies on their deathbed wishing they had more money, but everyone wishes they had more time.

On the other hand, there is a huge intangible aspect of your work, the importance of which is equal to or greater than that of the tangible aspects: job satisfaction. Do you find fulfillment in your work? Do you wake up every morning dreading the day to come, or do you wake up in the morning in anticipation of it? Do the hours at the office drag or do they fly by? Hours spent at the office don’t seem like a burden if you enjoy every second.

Read the rest…

Let’s be honest – many firms aren’t exactly silver-tongued at articulating what sets them apart from their competitors. They don’t always adequately impart the distinguishing characteristics that would “seal the deal” for lateral partner candidates. I think the primary reason for this is the firms want their plug to be optimistic and appetizing, and the most harmless way to do that is to use nonspecific statements or observations. For example, depending on the partner candidate, they may or may not be acquiescent to variable partner compensation. Some firms may think they are more attractive when they avoid the “nuts and bolts” specifics that may sour candidates who may be interested in the firm.

So…what’s a lateral to do?  Well, in today’s legal market, I believe it’s a good idea to go back to the basics.  It’s easy to get caught up in the complexities of the firm, but if the basics aren’t addressed, the more complex issues won’t be, either.

The first priority is to determine the pros and cons of your current situation. Second, determine what you’d like to see in your next opportunity. Once your list is complete, it will be the ruler you will use to measure each new situation you investigate. It is important that you take the lead by showing the firm how to characterize and promote itself. In order for you to determine if the opportunity is the right one for you, you MUST ask the meaty questions that will provide you the right information to ascertain if the firm: 1) is financially sound and has a well-defined outline of who it is and where it is going, 2) shares your view of how law should be practiced and 3) provides you both a financially beneficial situation and the atmosphere and opportunity to further grow your practice.

The following questions are to ask that will help you track the process and will either assist you in understanding the dynamics of the partnership or, at a minimum, will aide you in narrowing the field of firms. Some issues will be deal-breakers, others will allow for negotiation and compromise.

What business focus are you targeting? The uncertainty in today’s economy makes this a mandatory question to ask. Is the firm attempting to think ahead of the market in an attempt to anticipate the practice areas that will be most in demand in the future? How much does the firm rely on any particular practice areas? If the market for any of these legal services dwindles, what other practices will pick up the slack?

What are the firm’s plans for future growth and expansion? Any plans for new and existing satellite offices? What is the time-frame? We know expansion through mergers and acquisitions has become critical in the last several years. However, as we struggle through a recessionary economy, I think we’ll see increased attention placed on those law firms that have been conservative in opening new offices. After all, the geographic decisions a firm makes say something about the firm. This may or may not work for your practice.

How much debt does the firm have? Capital investment and ongoing debt obligations of partnership are critical issues in joining a firm as an equity partner. The prospective firm should be forthcoming about its debt and use of lines of credit. In today’s legal arena, profit per partner figures, on which we’ve relied heavily in the past, will not be as reliable as forecasts of future success. The key will be how the firm manages its business on behalf of capital partners.

What is your partnership structure? Today’s predominant structure is a two-tiered partnership. With the meaning of “partner” has changed considerably over the last decade, becoming an equity partner has, in some ways, become more difficult. Two-tiered partnerships may offer a firm more flexibility to promote lawyers without having to divide the profits. It usually also raises the entry bar to the equity level. Be sure to ask why the firm has chosen its partnership structure and if the firm has de-equitized partners in the past, and under what circumstances this occurred.

What is the firm’s compensation model? We are all acquainted with eat-what-you-kill, merit-based and lockstep partnership systems. Though we know that one is not elementally preferable to another, a firm chooses its compensation model for a reason. It speaks volumes about the firm’s culture and its business practice. I’m certain some will be more desirable to you than others. You will also want to ask who decides the compensation and if partner compensation figures are open or closed. Third, you will most definitely want to ask if aspects that are important to you (i.e. referring work and cross-selling) are rewarded in the firm’s compensation model.

How would my compensation be affected by a down year in my book of business? If your business is one that fluctuates with the ebb and flow of the economy, it is important to ascertain how a more modest year of collections will be viewed by a new firm.

Does the firm have a mandatory retirement age? Just like partnership models, the mandatory retirement age issue has been one in transition at many firms.  

Once on board, what programs does the firm have in place to facilitate my integration and aid in future success? You have a plan for growing your practice, but it is critical to know how the prospective firm plans to support you in this endeavor. The uncertainty of the direction of the industry makes this a mandatory question to ask.

Looking for more helpful information? Need expert career counseling? Visit www.grimeslegal.com or call 800-875-3820.

We all know today’s legal market continues to evolve and it certainly presents unique challenges. With the uncertainly still looming over the financial markets, many law firms continue to streamline their ranks and trim compensation for partners whose business has fallen off. It is not uncommon to push partners into early retirement or into counsel positions for those who are no longer producing at an acceptable partner level.

So…in light of these not so attractive elements, how do you stay nimble and place yourself in a position to exact the most benefit from the current market situation? How do you maintain a vital position and keep your firm enamored with you?

Answer: Do some soul-searching and ask yourself these thought-provoking questions. If you answer them honestly, they will help you determine if you should stay the course with your current firm or start to look for new digs.

1. Are you satisfied with your firm’s reputation in the legal and business communities?
2. Is your firm well managed?
3. Are you optimistic when it comes to the financial health of your firm? Do you believe management is making the right decisions regarding the firm’s future?
4. Does your firm provide the platform you require for building your practice? Does your practice coincide with the strategic vision of the firm?
5. Is the firm committed to marketing? Does the firm provide you with the resources you need to successfully market your practice?
6. Are firm billing rates compatible with your specialty and your clients and has your firm adopted a flexible billing program?
7. Do you have the opportunity to participate in important departmental or practice decisions? If you desire a leadership role in the firm, is that a real possibility?
8. Do you feel you are compensated fairly when compared with your peers at your current firm and with those at similar firms?
9. Is your firm a good cultural fit? Do your peers share your views of work/life balance and superior client service and reputable character?
10. Does the firm’s physical surroundings provide an atmosphere where you can be productive?
11. Do you feel respected and valued by your peers? Do you respect and value your colleagues’ legal work? Are you comfortable referring your clients’ matters to them?
12. Do you receive adequate support from other partners, associates, paralegals and support staff in order to get work done in a timely fashion?
13. Is the firm committed to pro bono work and community service in a way that coincides with your values and beliefs?
14. Does the firm have a fair policy for recognizing cross-marketing and service to yours and others clients? Is there equality regarding how much work you receive from others as opposed to how much work to you throw off to others?

By Andrew Lu on June 21, 2012 5:02 AM

Solo practitioners in Oregon have it worst, while 11-20 person firms in New York had it among the best in terms of getting paid for legal hours worked. This according to a new survey on attorney billing efficiency.

The survey looked only at small to medium sized firms with less than 50 lawyers. So the big firms with endless resources were not included. Though you can probably bet those firms milk every last penny out of their clients (and their attorneys).

The survey looks at attorney billing efficiency for firms, reports The Wall Street Journal. Billing efficiency means how much time you are actually paid relative to the amount you put in. So if you work nine hours, but only get paid for six, your billing efficiency would be 66%.

Not surprisingly, solo practitioners and two-person firms were the lowest on the efficiency scale nationally. What is surprising, is just how inefficient solo and two-person firms are, billing only at a 39% rate. Solos are expected to perform a lot of non-billable work like marketing, rainmaking, and administrative duties, so this may explain the low number. Additionally, solos probably don’t have enough resources to hire secretaries and assistants to perform the unbillable work. But getting paid for only half your time seems ridiculous. Perhaps this should motivate you to hire some help.

Sadly for attorneys in Oregon, all attorneys who responded to the survey only billed at a 40% efficiency rate, reports the Journal. If all attorneys in Oregon are only billing at a 40% rate, one can only imagine what a poor solo in Oregon gets.

On the opposite spectrum, lawyers in Delaware billed at 94% of hours worked. New York, Colorado, Utah, Louisiana, and Mississippi also ranked high on the list, reports the Journal.

Attorney billing efficiency varies wildly from state to state and among different sized firms. The fact that lawyers in Oregon bill less than half what their peers in Delaware do is shocking. If you’re a small firm attorney, you should consider hiring assistants. This may be a case where spending some money, will help you make a lot more.

Article originally appeared in:

Job #5078-MH1054

Job Title: Banking Associate

Location: New York, NY

Click here to apply

Mid to Senior Level Banking Associate

Seeking an associate with a minimum of 4 years experience in general banking, acquisition finance and leveraged finance law.  Top drawer law school/law firm experience required.

The NLJ 250 is out. 

The National Law Journal’s annual survey of the country’s largest law firms shows (no surprise) that hiring slowed significantly in 2008.  Seven large firms announced layoffs this year and two major firms on the list, Heller Ehrman and Thelen, dissolved, affecting about 1200 attorneys.  DLA Piper stayed at the top of the list and K&L Gates climbed into the top ten firms

Among the findings:

Growth is down.  The top 250 firms increased attorney ranks by 4.3%, compared to 5.6% in 2007. 

16 firms entered or left the list with several firms from the south and east entering the list and several from the Midwest leaving.

K&L Gates grew significantly, becoming one of the ten largest firms for the first time through mergers and lateral hires.

The credit crisis led to layoffs at several large law firms.  Seven large firms announced layoffs totaling more than 200 attorneys.  Hundreds more lost jobs with the dissolution of Heller Ehrman and Thelen.

The latest litigation trends report is based on responses from 358 participating companies — including company officials who serve as general or deputy-general counsels for their firms. Of that pool, 251 respondents were U.S.-based firms.

The top ten areas most rip for lawsuits were labor and employment matters, contract disputes and personal injury cases, product liability, intellectual property/patents, insurance, environmental-toxic tort, regulatory, class actions and professional services.

A summary of some of the findings:

It shouldn’t be a surprise to anyone that law firms plan on hiring fewer associates next year.

In Washington D.C., twenty two of the thirty largest law firms plan on bringing on fewer associates in 2008 than they did in 2007. Some will decrease hiring by only two or three attorneys, while others will cut hiring by as much as thirty percent. Collectively the firms that provided figures for a recent survey say that their associate hires will drop by five percent.

As the economy has faltered, workload has decreased, especially transactional work. With many lawyers afraid to risk a job change in a fluctuating job market, attrition is down. Firms are will be cautious in their hiring practices until the nature of the economic downturn becomes clear.

Lateral movement does remain strong, however, at the partner level. There is as much, if not more, demand at the partner level. Whenever news breaks that a particular firm may be having difficulties, recruiters start receiving calls from firms interested in recruiting partners who may be looking to escape a sinking ship.

The complete 2009 rankings are available. In addition to the prestige and “best to work for” rankings, they include the diversity and partner prestige rankings.

You can access all the rankings through this gateway page, or by clicking on the links below. Enjoy!

Top 100 Law Firms: 2009 Rankings (portal page) [Vault]
Top 100 Law Firm Prestige rankings [Vault]
The Best 20 Law Firms to Work For [Vault]
The Best 20 Law Firms for Diversity [Vault]
Partner Prestige Rankings [Vault]