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…

Ed Burke

The Am Law Daily

04-04-2013

Here’s a logic problem with practical consequences: Given that a firm’s survival depends on revenue; that revenue comes from sales; that lawyers are the ones charged with bringing in revenue; and that most lawyers can’t sell and don’t want to, which of the following should law firms do?

A) Keep depending on a handful of rainmakers with portable business.
B) Continue spending millions on marketing to support people who can’t sell.
C) Fire the CMO—again.
D) Scrap the existing compensation plan for one that truly provides a motivation for selling.
E) Teach the lawyers how to sell in a way they’ll accept.

If you doubt that the last answer is the best, consider one major law firm’s experience.

In the second session of a sales training program, several of the firm’s partners abruptly announced they had to opt out to respond to an urgent over-the-transom beauty contest. They were persuaded to stay and use the session to prepare for the pitch, so that all the participants could see the program in action.

The team garnered one of the largest antitrust cases of the decade. The astonished head of litigation, an initial skeptic, later wrote in a memo that the two things the client noted in its decision were the very two things (revolutionary for the time) that the session had stressed—gaining the prospect’s trust and showing that the lawyers knew the company. In a different pitch, the head of litigation added, there was an “unmistakable” difference between those who’d been trained and those who hadn’t.

Seldom do marketing programs produce such a “smoking gun.”

You’d think that in the ensuing 19 years, word would have leaked out about the potential of sales training. But a recent survey by The American Lawyer’s research arm found that the biggest complaint raised by young partners is that their firms don’t sufficiently prepare them to develop business.

Instead, firms have collectively spent literally billions of dollars and decades of time on an endless succession of dubious flavor-of-the-month marketing programs that don’t generate revenue.  Why? Because these programs are dictated more by what the partners will do within their comfort zones than by what works.  And then marketing—the process or the department—is blamed.

If a worker keeps blaming his tools for his failure, you don’t keep giving him more expensive tools. You teach him how to build.

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Sara Randazzo

The Am Law Daily
The legal sector added 2,000 jobs in March, according to preliminary data released Friday from the U.S. Department of Labor, the highest single-month gain in nearly a year, and the first addition of jobs in the industry since 2013 began.

Initial reports from the department’s Bureau of Labor Statistics reported a 200-job boost in the legal services industry in February based on seasonally adjusted figures, but revised data now shows that 700 jobs were lost that month. An additional 2,400 jobs were lost in January, though all data from 2013 is still considered preliminary.

The number employed in the industry as of March—1,126,900—is 9,000 higher than in March of last year. The figures have yet to rebound from their prerecession peak of 1.18 million.

Overall, the nation added an underwhelming 88,000 nonfarm payroll jobs, The New York Times reports, half of what economists expected. The unemployment rate remained nearly unchanged at 7.6 percent.

Last month, frequent Am Law Daily contributor Matt Leichter concluded that the legal sector has not benefited from what he calls the greater economy’s upward slog. Read Leichter’s full analysis here.

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?

Article as seen on Law.com – By Gina Passarella of The Legal Intelligencer – March 14th, 2013

As the final pieces of the America Invents Act are about to go into effect March 16, intellectual property lawyers are scrambling to get thousands of last-minute patent filings in before the old rules expire Friday.

And with firms inundated by clients’ interest in updating their patent filings before the country moves from a first-to-invent to a first-to-file patent system Saturday, those lawyers expressed concern that the servers at the U.S. Patent and Trademark Office may not be able to handle the surge in online filings.

Attorney Kenneth N. Nigon of intellectual property boutique RatnerPrestia in Valley Forge, Pa., said his firm has been asking clients to file in advance of March 15. He said a number of clients were looking to file last week and this week. The firm — which Nigon pointed out is just one of hundreds of patent firms across the country — has more than 120 applications currently waiting to be filed before Saturday.

“Because of that we also are kind of wary and think the patent office electronic filing system may not be able to handle it,” Nigon said. “We’ve also prepared our in-house staff to do paper filings if need be.”

Aside from the Saturday date for implementation of the new patent system, Nigon said he would expect another round of increased filings in advance of March 19, when filing fees are set to increase.

Cozen O’Connor intellectual property attorney Kyle Vos Strache said in a typical week he may personally file a handful of applications. This week, Vos Strache said, he anticipates filing dozens.

“I imagine the patent office is going to be incredibly busy come Thursday and Friday,” Vos Strache said. “We’ve really been pushing clients to get us responses to our drafts in the last two or so weeks and not this week. It’s hard to say whether the servers at the patent offices will be able to handle it.”

Vos Strache said he is trying to be proactive and avoid filing anything Friday. He said there is “truly that potential for something to go wrong” in this situation. To avoid that as best as it can, Cozen O’Connor has approved its attorneys and staff to work late all this week to get everything done, he said.

Buchanan Ingersoll & Rooney‘s intellectual property group co-chairman, Michael L. Dever, said there will most likely be a “huge spike” in application filings Friday. That is something the USPTO had been preparing for, he said.

The USPTO is not expecting a problem this week. The office said it “has deployed sufficient server capacity to support any potential surge.”

Read the rest…

Originally seen:  Law.com – March 8th, 2013 – By: Tom Huddleston, Jr.

Legal hiring rebounded slightly last month after suffering a major drop-off in January, with the industry adding 200 jobs, according to seasonally adjusted preliminary employment data released Friday by the U.S. Bureau of Labor Statistics.

The initial estimate of February’s modest gains comes a month after the BLS reported that the legal industry had shed 2,400 positions in January.  The positive news contained in Friday’s report was, however, offset by a revision to the preliminary January figures that pushed that month’s estimated job losses up to 3,500. (Friday’s report showed the agency’s December estimate holding steady at 1,900 jobs gained for the month.)

Factoring in Friday’s hiring estimates, the legal sector now employs 5,000 more people than it did at this point last year and roughly 1.125 million people overall—about 50,000 fewer than it did at its prerecession peak in 2007.

Overall, the U.S. economy added a better-than-expected 236,000 jobs in February, according to The New York Times. The uptick dropped the unemployment rate to 7.7 percent, the lowest it’s been since December 2008.

As discussed last week, navigating the current legal market and making decisions about the future of your career can seem rather daunting. Here’s a step-by-step guide on how to decide which changes to make and how you should make them.

1.  Evaluate the Market

Before you performed any science experiment in school, you had to gather background information.  Why wouldn’t we take the same approach to changes in our career?  Consider the attorneys who have recently been “let go” at your firm, those who have moved from one firm to another within your practice area and large advancements or downfalls in the practice you are interested in.  Factors similar to these aid you in developing a clear picture of the market as it relates to your career and ensuring you aren’t stepping into the path of a landslide.  Utilizing publications such as American Lawyer Daily and, more specifically, The Churn is key to keeping abreast of the current legal market.

Another website I suggest you take advantage of is HG.org.  HG.org has a truly helpful section of their website where you can research an area of law and locate a list of related organizations and articles where you might discover unique offshoots for your practice.  The site also shows the differences and similarities in the area when practicing in the United States versus internationally.

2.  Use Your Resources

In this day in time it’s no longer all about WHAT you know, it’s more about WHO you know.  That’s right, I’m talking about networking.  Networking is not a merely a way of getting a new job, it is also a great way to gather information.  Unless you work at a boutique firm, your firm probably has lawyers who do the kind of work you are considering.  What would it hurt to ask them about their work?  If you do not have access to such attorneys in your office or firm, it would be beneficial to consult friends and colleagues who do have access to get answers to your questions.  Or, take time to network at local political and social functions which are frequented by area attorneys and familiarize yourself with those who practice in your area of interest.  Spearhead a fundraiser for the cause and invite those attorneys to assist you, then ask questions during your meetings.  With this approach, you may also acquire an ally at that law firm should you ever decide to leave your current firm.

You should also consider calling your other legal contacts who are not necessarily attorneys.  Any legal recruiter who knows the ropes would be able to give you with an idea of what you are getting yourself into with this change as well as provide unique insight from attorneys with whom they have worked, including the good and the bad aspects of the practice area.  Your seasoned law school professors can also give you information from personal experience, study or contacts about the area of law you are considering.

3.  Gather Clientele

Let’s start with the easiest way to gather clients, shall we?  You already have clients in your primary practice area and they obviously like your work or they wouldn’t be your client.  Contact your existing clients to let them know to better serve their needs, you have expanded your practice to include “XYZ” work and would be honored to assist them in any matters related to both areas of law.

For bringing in new matters, I would suggest speaking with other attorneys in the practice area to let them know you have expanded your practice and would be glad to assist them.  It would also be a good idea to speak with the chair of the practice (if there is one) and let him/her know that you are interested in helping with any new matters that come available.

Another great way to gather clients is through social media.  Not only will advertising your new skill on social media networks attract new clients, it will also show others (and possibly potential employers) that you see the benefits of expanding and investing in personal growth, which is never a bad trait to market.  You should also continue to implement any previous paths you were using to bring in clients.

A Different Direction

Truthfully, another change you may want to make in your career is a change in scenery.  You may feel a sense of loyalty to your current firm, but you must ask yourself, “Is this firm giving me the support and platform I need?  Am I getting looked over by potential clients because my law firm is not well-known for the work I do?  Will I ever get to the level of seniority I desire at this law firm?”

These are all very good questions to which you owe yourself answers.  However, like the old saying goes, sometimes it is impossible to see the forest for the trees.  If you would like to find out which law firms are best known for in your particular practice area, you may consider visiting Vault.com under the “Rankings” tab or the Chambers and Partners website.  I would also advise you call my office if you desire information about law firms that only someone who has worked with them for 20+ years could provide you.  Please feel free to use any or all of these tips you find to be appropriate to your situation.  Should you determine my services would be helpful to you, whether it is for gathering information or otherwise, I would appreciate a conversation with you.

Changing with the times is not a new idea; in fact, it has been around ever since the beginning of time. Faith Baldwin, US fiction author, said “time is a dressmaker specializing in alterations.” As time flies by, your practice is in danger of falling by the wayside if it is not resilient and does not alter as time demands.

I had the pleasure of knowing a partner a few years ago who took resiliency to new dimensions. While working as the chair of her firm’s Telecommunications group, the practice flourished and grew to new heights. However, she later became at risk when her practice shrunk due to client mergers. She then started immediately looking for ways to evolve with the times. She saw that cyber security was an emerging area and a need many companies would have and used that to her advantage when she re-purposed her practice to include Privacy and Data Security. Fortunately, as the tide lowered in her traditional telecommunications practice, it rose tremendously in her new practice focus. This candidate drew from the issues of the day and saw the benefits of altering her practice and almost doubled her compensation as well as greatly benefited her firm.

There are innumerable candidates out there who have found this sort of success after adjusting their practices, and you can too! However, navigating the current legal market and making decisions about the future of your career can seem rather daunting. Check back next week as Nancy Grimes shows you step-by-step how to decide what changes to make and how you should make them!

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.

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