This article discusses the question:
How should a firm compensate same-year associates working in different practice areas with materially differing billing rates?
Compensating based on profitability ensures that a firm’s bonuses are tied to created profits. Included in this article are formulas and reports to help understand how compensating for profitability may work.
When determining associate compensation, firms rarely go beyond the billable hour. This article will define four of the more quantifiable, non-production areas that firms can measure when determining associate pay including: originations, training, leveraging, recruiting profitable lawyers.
Want to develop your associates into stellar attorneys?
Start by hiring the right ones.
Hire the best attorneys. Develop them into successful attorneys. Encourage productivity and retention with compensation and incentives. Repeat.
For firms that are committed to law school hiring…….. rather than who still believe.
Does your firm want to stay around for a while?
A competent compensation system is a must.
This great plan involves a committed effort, the right systems and the right people. The links to the articles below can help law firms to put this plan into action.