lawyers

Whither Law Firm Salaries?

The ABA Journal online is reporting that the major law firms are no longer marching to the same drummer. In the past, several key firms would set their starting salaries each year, and everyone else would simply follow. But now folks are all over the lot. Some have started lowering the $160,000 top rate achieved last year to $145,000. With that, some are also cutting the hourly rate charged to clients for first years’ work. Other firms have kept the $160,000 but frozen or lowered more senior associates’ pay. Still others are moving away from the lockstep increase associates receive each year to embrace more merit-based models.

A prominent consultant was quoted in the piece as saying the days of everyone with the same salary structure are over. The feeling is that starting salary will now be less important than how fast your salary can increase. Note that the big firm salary ranges trickle down to smaller firms, like mine. Of course I don’t pay anything near what big firms pay, but most small firms tie their compensation approach to have some relationship to what the big firms are doing. We try, for example, to keep our starting salary at a specified percentage of starting salaries at big firms. So what’s not clear is, what will I base it on now?

I guess more free market forces may finally get their day in our profession. This is not necessarily a bad thing. And yes, I like the merit-based approach to comp.

lawyers

One Hot Area of Opportunity for Lawyers: Government

Some feel President Obama believes that only “big government” can solve the nation’s problems. Others think he’s only temporarily increasing its size to help the economy, and after all, George W. Bush is the one who sent the deficit above $1 trillion. And everything in between.

When I was in Washington in early February I saw it already. With the economy elsewhere in tatters, a ton of new construction was going on and there was clearly a feeling of economic revival of sorts. This is good for lots of people, but in particular lawyers. According to the ABA Journal online, the government needs to hire 270,000 lawyers. That’s a whole lot! The report also indicates that there are five other “mission critical” areas where a lot of hiring is coming, including the medical, law enforcement and technology fields. It’s not all about the stimulus, in many cases there is simply an aging government worker population and many are beginning to retire.

Even with so many lawyers out of work, the report suggests it may still be difficult for the government to lure lawyers away from much higher-paying private sector jobs. Given the resumes I see from talented attorneys without jobs, I think this may be the best hiring moment for the government in a long time.

lawyers

Survey Reveals Substantial Growth in Online Social Networking by Lawyers in 2009

New survey data reveals that more than 70 percent of lawyers are members of an online social network – up nearly 25 percent over the past year – with 30 percent growth reported among lawyers aged 46 and over. The second annual Networks for Counsel Survey of almost 1,500 lawyers was commissioned by LexisNexis Martindale-Hubbell, the industry leader in networking and law firm marketing. It shows that more than 50 percent of respondents think online networks have the potential to change the business and practice of law, while 65 percent expressed interest in joining an online professional network designed specifically for their profession.

The 2009 Networks for Counsel Survey was conducted by Leader Networks, a consultancy that helps businesses foster online social networks. It is the second annual survey that examines the online networking practices of lawyers. A copy of the survey is available online at www.leadernetworks.com.

“Networking remains a critical means of business and professional development for lawyers even as opportunities for face-to-face networking have become severely limited by budget and staff cuts,” said Vanessa DiMauro, CEO of Leader Networks and author of The 2009 Networks for Counsel Survey. “Online networking has emerged as a viable and fast growing means for legal professionals to accelerate or augment their ability to connect with their peers and share best practices.”

“Lawyers are transforming the way they network by incorporating social media tools into their work in record numbers and in increasingly sophisticated ways,” said Ralph Calistri, CEO of Martindale-Hubbell and senior vice president of Global Client Development at LexisNexis. “Both the survey results and the phenomenal membership growth in our own online legal network, Martindale-Hubbell Connected, demonstrate the strong demand for a secure, authenticated network designed specifically for legal professionals.”

lawyers

Lawyers (and Everyone): Watch Your Facebook!

At a recent American Bar Association panel, Texas Judge Susan Criss told an amazed group about how she “caught” lawyers lying to her through Facebook. She has been using the social medium to reconnect with old friends and help with her campaign.

According to the ABA Journal online, she talked about the lawyer who asked for more time for a case because her father died. Sure enough, on Facebook the lawyer was bragging about her week of carousing, getting drunk, etc. Another lawyer apparently groused on Facebook about not looking forward to arguing a motion in her court. She got this guy back in her courtroom.

I have actually seen lawyers who post things like, “I can’t believe what this client thinks they deserve in this case,” and stuff like that. Even if you don’t name the client, that stuff comes dangerously close to the line. And yeah, if you lie, as a lawyer that’s kind of really bad. Especially lying to the folks in the black robes.

Many of us old folks have come to really enjoy finding friends from childhood, etc., on Facebook, much to the chagrin of our teenage kids. But just remember, as I try to every day when I write on here, whatever you put on the Internet, is there. Forever. Even if you delete it, someone may have already copied it. So think twice. I should follow my own advice a little more often! Have a great weekend everyone.

lawyers

Harvard to New Lawyers: Try Plan B

The ABA Journal online reports that Harvard Law School sent a memo to graduating students in March trying to suggest that they not panic. In a time where quite a number of firms are cutting back on hiring, delaying start dates or even rescinding offers, Harvard advised, “Now is not the time for avoidance, denial or panic. Instead, keep a cool head and focus on the things that you can control.”

They suggest things like well, if you’re thinking about DC, try Baltimore. One commenter to the online blog said, “Seriously, Harvard law grads don’t have to worry about anything This is a non-story.” I respectfully disagree. It’s the top school, but it does not guarantee that every graduate, regardless of attitude, personality and the like, can find a job.

Back in 2001 a job crisis also existed. I remember being asked to go down to Wharton to talk to graduating MBA students and give a similar “don’t panic” talk. The key in these situations is not necessarily thinking about alternate geographies but rather alternative directions. To the MBAs I said, “Put aside working for a big consulting or investment banking firm. How about a solid manufacturing company in need of operating help? Or a not for profit that’s doing some important things?”

I told a college student in our office heading to law school now: you’re lucky – hopefully when you get out in three years things will be better. But I agree with Harvard on one thing. The guys coming out now need to put together that backup plan.