Inside the Black Box: Jones Day Staff Salary Freeze

As many of you know, Jones Day guards its salary information as if the firm is protecting the Holy Grail. Compensation is kept confidential and talking about what you make, even to colleagues, is generally discouraged.
But no firm is immune from the global economic crisis. Today, a piece of information leaked out of Jones Day regarding a freeze on staff salaries:

In responding to these kind of challenges, the Firm has always been concerned about the long-term and about what is in the best interests of our clients, our lawyers, our employees, and the Firm as a whole. Thus, we consistently try to make decisions that are aimed at protecting those long-term interests. That process requires that we adjust to meet new challenges, and it means that we must be prudent in managing our costs and expenses to ensure that we maintain our solid financial foundation.
Consequently, as the year has unfolded, we have examined all of our spending and are making adjustments in a number of areas. As a part of that examination, and after careful consideration, we have made the difficult decision that salaries for all legal support personnel and staff in all Offices and Departments of the Firm will remain at their current levels through June 30, 2010, and that no Year End Payments or discretionary bonuses will be paid in 2009. We know that these decisions may be disappointing for you and your families. We also are confident that you share our commitment to the long-term success of the Firm and understand that these decisions are one part of ensuring that success.

As we’ve seen around the legal industry, employees — be they staff or associates — are generally willing to suffer a pay freeze if it means they can hang onto their jobs.
But will the pay freeze help Jones Day staff keep their jobs? Notes about the Jones Day performance review after the jump.


As Jones Day is freezing staff salaries, the firm is also laying the groundwork for its 2009 staff performance reviews:

The 2009 performance evaluations will be completed with the same candor and care as in any other year. We rely on these reviews to evaluate staffing and identify areas needing improvement. We hope that you view the process in the same way.

An opportunity for improvement? Sounds great!

While none of us can predict what may happen over the next year, we do know that, in this difficult economic environment, our clients expect us not only to continue our dedication to superior client service, but also to work to improve our effectiveness and efficiency. And that means that all of us need to continue to learn more and get better — to work toward being the best we can be at what we are asked to do. I encourage each of you to work with your supervisor, manager and assigned lawyers to use this year’s review as an opportunity for a constructive discussion about how to work better together.

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How are Jones Day staffers feeling about their job security?
A salary freeze is a lot better than a salary cut. We haven’t heard anything about Jones Day management contemplating anything that drastic.
Read the full memo below.
JONES DAY — MEMO — STAFF SALARY FREEZE
2009 Performance Reviews
The Firm’s annual performance review of legal support personnel and staff has been completed this year in the face of very difficult economic conditions for businesses throughout the world, including law firms. You likely have seen some of the media reports on the lawyer and staff layoffs that have been announced by many law firms in the U.S. and internationally.
In responding to these kind of challenges, the Firm has always been concerned about the long-term and about what is in the best interests of our clients, our lawyers, our employees, and the Firm as a whole. Thus, we consistently try to make decisions that are aimed at protecting those long-term interests. That process requires that we adjust to meet new challenges, and it means that we must be prudent in managing our costs and expenses to ensure that we maintain our solid financial foundation.
Consequently, as the year has unfolded, we have examined all of our spending and are making adjustments in a number of areas. As a part of that examination, and after careful consideration, we have made the difficult decision that salaries for all legal support personnel and staff in all Offices and Departments of the Firm will remain at their current levels through June 30, 2010, and that no Year End Payments or discretionary bonuses will be paid in 2009. We know that these decisions may be disappointing for you and your families. We also are confident that you share our commitment to the long-term success of the Firm and understand that these decisions are one part of ensuring that success.
The 2009 performance evaluations will be completed with the same candor and care as in any other year. We rely on these reviews to evaluate staffing and identify areas needing improvement. We hope that you view the process in the same way.
While none of us can predict what may happen over the next year, we do know that, in this difficult economic environment, our clients expect us not only to continue our dedication to superior client service, but also to work to improve our effectiveness and efficiency. And that means that all of us need to continue to learn more and get better — to work toward being the best we can be at what we are asked to do. I encourage each of you to work with your supervisor, manager and assigned lawyers to use this year’s review as an opportunity for a constructive discussion about how to work better together.
Thank you for your contribution to the Firm in the last year, and for your loyalty and commitment as we make our way through this challenging period. Steve Brogan and all of our lawyers are very grateful for the many talented people who make it possible for us to provide our clients with excellent service as One Firm Worldwide. We look forward to working together to be even more effective for our clients in the future.

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