Associate Life Survey: Got Severance?
In an ATL / Lateral Link survey last March, 53% of associates thought their firm would provide ample notice before a layoff, to give them enough time to find a new job. And 54% of associates expected a decent severance package.
But as the economy continues to chill, notice and severance packages may be suffering some shrinkage.
On the severance front, one tipster wrote in:
I remember back in 2003, one of my colleagues was laid off from our firm, and they provided him with six months’ salary and hired a professional career consultant/placement agent to help him land safely. At the time, 3 months’ was standard. This firm did all the right things, including telling him that it was purely for economic reasons and not performance related. The rewards to the firm were obvious - he joined the in-house legal team of a Fortune 50 corporation, and still looks back fondly at our former firm despite being laid off.Things are much different now than in 2003, and it seems we’re lucky if we even get one month.
In today’s survey, we’ll take a look at how firms are handling notice and severance for their departed associates, and also ask how they should treat these issues.
Update: This survey is now closed. Click here to see the results.
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Justin Bernold is a Director at Lateral Link, the sponsor of this survey.
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Comments
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Justin -
I think you are missing another important aspect of the survey which is benefits namely health care. COBRA is brutally expensive especially for associates with families. I would be interested to know if firms are extending health care (a la Cadwalader) or not (a la Paul Hastings which apparently is not doing any layoffs).
The cat photo isn't funny. Stop using them.
Severance and COBRA are for pussies. (So is accrued vacation.)
- Slightly bitter Heller Ehrman refugee
That cat is adorable. Stop being an hysterical, cat-hating, no doubt serial murdering, freak.
Cooley offered COBRA and 3 months of pay to those who were part of the 52-lawyer "economy-based" layoff two weeks ago. Rumor has it though that the following week (i.e. last week), associates were stealthily laid off after performance reviews and only given a week's worth of severance. Talk about a double whammy.
Sometimes Mystal likes to be called 'The Fat Cobra'.
That is indeed a perfectly good lolcat. I would snuggle that little bastard all day if I could.
It is very interesting that severance paid to bankers of the bankrupt and near-bankrupt financial institutions (Lehman, for example) far exceeds that being paid to attorneys. From what I'm hearing, market is about seven months salary plus a substantial bonus in the New York finance world.
Average severance at BigLaw, where partners are continuing to clear $1.5 million despite being at the very depth of the market downturn, is probably about 3 months pay, and no bonus. There are a few law firms of course that have gone the extra mile for the employees they have had to put out on the street. Cadwalader, Thacher Proffitt and some others I think have offered about 6 months pay in support of their people.
Banking vs law is supposed to be high reward/high risk vs lower upside lower risk. In fact, banking vs law is high reward/LOWER risk.
If firms give associates 3 months to look for a new job, do they still offer a severance package at the end of the 3 months?
12-- Usually if you get told you have a certain period of time to find a new job, there is no severance at the other end of that. I have heard of people in tough economies (2001-2002) running out of time and getting a few months added.