As more and more people discover that law school is not the “get rich quick” scheme that they once thought it was, applications continue to plummet. As of late January, law school applications were down 13.7 percent from where they were in 2013. The loss of student revenue is killing the bottom line at some law schools, and members of their administrations don’t like it one bit.
These ivory tower inhabitants seem terrified and are reacting accordingly, having been forced to deal with the dearth of applicants and enrollees in all sorts of ways. Some law schools are doing the right thing and lowering tuition in the hopes of luring students to their once hallowed halls.
Others are hacking and slashing away at their faculty and staff, just like law firms. First came news of the potential purge of junior faculty at Seton Hall (which was fortunately averted). Next came the staff massacre at McGeorge. Then Thomas Jefferson started handing out pink slips, and all hell broke loose.
Which law school is the latest to announce a possible pruning of its ranks? We’ll give you a hint. This law school is located in New York, a state with 15 law schools to choose from, several of which have been sued over their allegedly deceptive employment statistics…
(Please note the multiple UPDATES added to this post.)
Law firms across the land are running tighter ships these days. Even if your firm breaks the $2 million mark in profits per partner, which is good enough to put it in the top quarter of the Am Law 100, there’s no reason to dilute your PPP unnecessarily.
Consider the venerable law firm of Debevoise & Plimpton, one of Biglaw’s most prestigious and profitable firms. Earlier this year, the firm parted ways with its trusts and estates practice, a move that was viewed in some quarters as designed to enhance profit.
First they came for the T&E lawyers. Then they came for the legal secretaries and other support staff….
You’d probably pack up too if you were in this secretary’s shoes.
Voluntary buyouts for support staff are going viral within Biglaw — and that’s a good thing, at least compared to the alternative of layoffs. As we’ve previously observed, “voluntary retirement programs allow employees to self-select, so that employees who are well-situated to enter unemployment can opt in, while employees who need their jobs badly can keep working.”
Whether you should accept or decline your firm’s buyout depends on many factors. What kind of savings or other assets do you have? How generous is the package being offered? Do you have a spouse who still works? Do you have dependents who rely upon your income?
We heard from one retired legal secretary in response to our recent request for volunteers willing to discuss why they took or didn’t take a buyout. You can see why this secretary entered early retirement, due to an enviable financial position and a delicious package….
Say hello to ‘Buyout Box,’ which we use in lieu of ‘Layoff Lady’ when covering voluntary retirement programs.
This past spring, McKenna Long & Aldridge made it into the Am Law 100, the nation’s 100 largest law firms by revenue. McKenna achieved this feat by posting an impressive 23 percent jump in gross revenue.
Now that it’s in the big leagues, McKenna is following the lead of other Biglaw firms by trying to get smaller (and more efficient). Like so many other top firms, it seeks to reduce its secretarial staff through voluntary buyouts….
Many longtime observers of the legal profession argue that it’s not what it once was and that it’s increasingly focused on the bottom line. But even when trying to improve the bottom line, many law firms go about it in a kindler, gentler manner. Traces of Biglaw’s gentility remain.
Today we have news of another firm that’s reducing its ranks — not through layoffs, but through generous voluntary buyout packages….
Would you pack it all in if offered a lot of money?
This isn’t your father’s Davis Polk. The venerable firm, known for uber-white shoes and super-blue-chip clients, is changing.
(Let’s hope the firm maintains its commitment to hotness in hiring. Someone has to care about beauty in Biglaw, right?)
Under managing partner Tom Reid, DPW has become energized, entrepreneurial, and expansionary. Since Reid took the reins two years ago, the firm has pushed into new areas and gone on a lateral partner hiring spree — a sign that DPW is no longer waiting for work to come its way, but seeking out business more actively.
So maybe it shouldn’t be shocking to learn that DPW, given this growing focus on the bottom line, is following the trend of offering buyouts to reduce the ranks of support staff….
We have previously discussed the advantages of voluntary buyouts over layoffs, especially stealth layoffs. Voluntary retirement programs allow employees to self-select, so that employees who are well-situated to enter unemployment can opt in, while employees who need their jobs badly can keep working.
Imagine you’re a legal secretary at one firm who’s married to a high-earning partner at a different firm. You work to keep yourself busy, especially since your kids are all grown, but you don’t need your job that badly. You might take a buyout package and retire a few years early so that one of your fellow secretaries, a single mother with two young kids, can put food on the table.
Voluntary programs are so much better than layoffs — which is why we were happy to hear that rumors of secretarial layoffs at one firm actually turned out to refer to a buyout program. A program with rather generous terms, in fact….
Mammas, don’t let your babies grow up to be legal secretaries. We’re hearing scattered and somewhat hard-to-confirm reports of lawyer layoffs at various firms — please email us or text us (646-820-8477) if you have news to share — but efforts to reduce the ranks of secretaries are open and notorious.
If you spin through our staff layoff coverage, you’ll see that numerous law firms have shrunk the size of their secretarial staffs. Some firms have done this the hard way, through layoffs, while others have taken the kinder and gentler route, through buyouts.
Today we can report that two leading law firms have jumped on the “voluntary separation” bandwagon. If you’re a recently displaced legal assistant looking for a new position, don’t bother applying to either of these places — one of which is shedding lawyers, too….
In round one of our Above the Law March Madness bracket, aimed at finding the law firm with the brightest future, Davis Polk is up against (and currently beating) Latham & Watkins. I actually found that to be a pretty rough opening match-up; both Davis and Latham strike me as firms that should be in the Sweet 16, and maybe even the Elite Eight.
Thanks to its top talent, superb brand, and global footprint, Latham has a bright future as a firm. Of course, working there can be like riding a roller-coaster: it expands like crazy and mints money during good times, then conducts massive layoffs during bad times. But if you can stomach the ups and downs, LW can be a great place to work.
Alas, not everyone at the firm will get to keep working there….
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.