Associate Bonuses Perhaps law firms do learn from their mistakes. For the third year in a row, it appears that most major firms are holding the line on associate salaries. But some leading firms are bumping associate bonuses to provide increases in total compensation. Sullivan & Cromwell has announced that 2004 year-end associate bonuses will range from $20,000 to $30,000. Last year’s bonuses were $17,500 to $27,500. This is in addition to the surprise October bonuses which were between $10,000 and $20,000. This pushes total average first year compensation to $155,000.
The philosophy is that the use of bonuses allows adjustments in associate compensation during lean times without having to actually cut base pay. Large bonuses are not new but, in the past, most have been tied to specific billable hour performance levels. Apparently, the new bonus system will be subjective based on overall performance. It is expected that other New York firms will follow suit. This is actually a trend that has been in place for several years in some mid-western firms where bonuses make up as much as one-third of total compensation.
Unique Perks Our list of the top ten law firm perquisites in our last issue bought in some interesting new perks from readers. Some firms (notably Weil Gotshal & Manges in Dallas) permit attorneys and staff to bring pets into the office after hours and on weekends. Several firms offer babysitting (presumably for human babies) on Saturdays in the office. A number of firms noted that they permit free photocopying and use of word processing for civic and charitable organizations in which attorneys and staff are active.
Holiday Plans We did a quick survey of some of our clients as to their plans for holiday parties and days off. Half of firms we talked to are having a formal holiday function that includes spouses. About two-thirds of firms are having some form of in-office function on December 23rd although most firms are continuing to de-emphasize alcohol by serving wine, beer and soda. One trend that seems to be reversing itself is the movement toward combined attorney/staff holiday functions over recent years. A number of firms are planning separate parties because getting everyone together at one function made it too big and impersonal.
Plans for days off seem to be all over the map. A majority of firms seem to be giving either a full or half day off on Friday, December 24th and Friday, December 31st. Some firms we talked to are giving the following Monday off for both holidays. Several firms are giving employees the choice of taking these days off or accepting two “floating holidays” that they can use when they wish. As a general rule, most firms will officially be open on both days but will be operating with skeleton staffing.
It is interesting to watch the creativity that the Saturday holiday schedule has brought out in law firm HR Directors and Office Administrators. A number of firms that are planning to be open on the two Fridays are planning special events. The most popular seems to be a breakfast on both days including one firm that will have a surprise Breakfast with Santa (the firm managing partner will play Santa). Several firms are planning on having strolling carol singers and one firm will have a pianist playing holiday songs in the firm’s reception area. A firm in Chicago has divided the 12 Days of Christmas among its staff department with each planning a lunch hour “mini party” around one of the days (lords a’ leaping, swans a’ swimming, etc.).
Part-time Arrangements According to a NALP survey, the percentage of practicing attorneys who are working on a part-time basis is increasing, but very slowly. The statistic rose from 2.9% of attorneys in 1999 to 4.1% in 2003. However, 96% of all law firms surveyed have some form of part-time arrangements with attorneys on either a case by case basis or as a general policy. A number of our clients seem to feel that the 96% statistic is high so, during the next month, we will be doing a survey of large firm HR Directors on part-time policies for both attorneys and staff. We’ll have the results in our next issue.
