A couple of weeks ago, as Obamacare was just stumbling out of the gate, we asked our readers to tell us about the state of their own health insurance plans through their firms. Since the Recession, we have heard anecdotal evidence that some firms have been using health care cost clawbacks as a stealth expense-cutting tactic and de facto pay cut. We wondered how widespread a phenomenon this practice had become. Well, perhaps that’s a bit disingenuous. We had a strong feeling that, in this time of layoffs and all the rest of the Biglaw belt-tightening measures, that no category of expenses would be immune. And our survey results resoundingly confirm those suspicions: 89% of you tell us that your health insurance premiums have gone up since you started work at your firm.
A relevant tip showed up in the ATL inbox this week. An attorney at a prominent (V25) law firm sent us a memo outlining new changes to the firm’s health plan. Here’s an excerpt: “The deductible for the CIGNA PPO plan will change from $250 single/$750 family to $500 single/$1,000 family. Also, the PPO prescription copays [will all increase]. These changes bring our PPO plan design in line with market
practice for large law firms (emphasis added)”…
With the continuing partial government shutdown and the shaky rollout of Obamacare, the issue of health insurance has never been such a central and divisive topic in the national conversation. Surely there are thousands of unemployed or temping JDs who are entering the brave new world of insurance exchanges and its attendant “hiccups.” In a development that perhaps should alarm the lowest-paid support staffers at law firms, some corporations appear poised to drop “bare bones” health-care benefits altogether for low-wage employees in favor of directing such employees to the new state exchanges.
Of course, for the lawyers at firms, such developments concerning the exchanges are essentially an abstract issue. That is not to say that attorney benefits packages are not subject to “new normal” economic pressures, or that the ultimate effect of the Affordable Care Act on private health insurance packages is unknowable. As noted here way back in 2009, some firms have added health care cost clawbacks to their expense-cutting repertoire of layoffs and pay cuts. Many associates have found themselves, post-Recession, with higher premiums and deductibles and thus, a de facto salary cut. Comparing salaries and bonuses across law firms overlooks the element of health insurance costs, about which there is no equivalent transparency. Undoubtedly there are significant variations across firms in this area, and some firms that appear to pay “market” aren’t quite doing so in light of their requiring a larger fraction of health care premiums. These variations inevitably distort direct comparisons.
We’d like to bring some transparency to this topic — but we need your help….
Our friend Bruce MacEwen has written a trenchant analysis of the predicament currently facing the large law firm business model: Growth is Dead: Now What? In the words of Paul Weiss chair Brad Karp, the book “is an extraordinary body of work that reflects enormous insight and ought be required reading by managing partners of law firms,” as well as “a much-needed wake up call for our profession.”
Originally a twelve-part series on Adam Smith Esq., Growth is Dead will soon be released as a paperback. Next Tuesday, February 26, ATL will host a salon-type event for law firm partners in celebration of this release, at a sleek new venue in a convenient area of Manhattan. Peter Kalis, global managing partner of K&L Gates and author of the foreword for Growth is Dead, will introduce Bruce, who will then (briefly) discuss his book and take a few questions. This will be followed by a free evening of cocktails and thought-provoking conversation. We’ve had a robust response so far, but limited spaces are still available. Law firm partners, please join us; you can RSVP here.
By way of preview, we spoke with Bruce about his book. How did it come about? What did he find out in the course of writing it that was most surprising? Encouraging? Discouraging?
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.