I am more depressed than usual. I blame Mystal and his expose on What You Can’t Do With a Law Degree. I know if given the chance, I could make the most divine half-caf-extra-whip-extra-hot-mocha. But, alas, I am destined to stay a lawyer.
That is little solace, of course, because it is hard to get a job, hard to keep a job, and in my experience, hard to stomach the job. And, according to that Wall Street Journal article that everyone posted as a Facebook status, law firms want to keep the number of associates low, work them like dogs, and pay them like, well, high-paid professionals. This means that recent graduates are still screwed, and I am having trouble taking off my sweatpants today.
Just when I thought all was lost, however, I found a positive story about law firms. And, of course, because that is how we roll, it involves a small firm….
As we mentioned in Morning Docket, the Wall Street Journal has a good article about how various recession-era cutbacks have become entrenched in Biglaw. If you have been paying attention or are a current law student, you know the issues: smaller entry-level classes, stagnant salaries, and a partnership track long enough to make a first-year Ph.D. student laugh.
Basically, if you were already a Biglaw partner when the recession hit, you are likely to say, “What recession?” Your profits per partner have probably gone up, despite the general economy’s woes. Other industries use economic downturns to retool their business models and develop new ways to compete. Not Biglaw. It appears that Biglaw has used the recession to fire a bunch of people, exclude new partners, and keep associate salaries and bonuses at recessionary levels. They haven’t developed a new business model; they’ve just found a way to reduce the costs of the old business model.
Biglaw partner: It’s great work if you can get it. The WSJ even found one partner who was so busy loving himself and his life that he appears to be totally oblivious to the struggles of everybody else…
According to the Wall Street Journal (sub. req.), small law firms have adopted the mantra: merge or die. Indeed, the number of law firm mergers is staggering. “At least 60 mergers occurred in the U.S. and abroad last year, the highest level since 2008 and a 54% jump from 2010, according to legal-industry consulting firm Altman Weil Inc. Industry experts expect the figure to rise this year.”
Why the up-tick in mergers? The economic downturn has caused a shift when it comes to legal service providers: it is a “seller’s market for the first time in 20 years.” In other words, law firms are not able to raise rates in order to increase profits. So, small firms turn to mergers as a way to increase their revenue and allow them to compete with all-purpose, larger firms. Randall H. Miller, who as managing partner at Denver-based Holme Roberts & Owen LLP helped engineer its acquisition by Bryan Cave, explained that “[l]ittle by little, our ability to service our clients’ needs ha[d] been limited by our smaller size,” which was why he pushed for the merger.
Yet, small firm to large firm mergers are not the answer for all small firms. The article featured several potential problems….
There are 64 open jobs in occupational therapy for every 100 working in the field, the [SimplyHired.com] site’s data show. Yet online job listings for these positions get 50 times fewer clicks than the hardest-to-place industry — the legal field. Meanwhile, unemployed lawyers now find themselves in the country’s most cutthroat race for a job, with less than one opening for every 100 working attorneys.
When I graduated from law school, I decided that I would take a job at a large law firm because it would maximize my chances of going in-house. I had no idea what either job would entail, but it seemed like a sensible plan. And, even without knowing what it would be like to be a litigation associate in Biglaw, I suspected it would be bad enough that an exit strategy would be necessary.
A few years later, I switched my exit strategy and went to a small firm. I decided that I could not wait for three to five more years to get the skills required to go in-house. So, I went to a small firm to get “hands on experience” and position myself for my new exit strategy: a federal government job. Then, hiring for federal jobs froze, and the few openings were impossible to get unless you had the exact experience required and could figure out your grade level. Consequently, I am currently reformulating my exit strategy. I am contemplating running for president or becoming a certified yoga instructor.
I have yet to meet a lawyer who did not plan or fantasize about his or her exit strategy from law firm associate, be it Biglaw or small. I blame it on the nightmare that is billing hours — even if the requirement might be less at some places. The most common exit strategies are (1) in-house and (2) fitness professional.
Is it possible, however, for a small-firm associate to go in-house, or is the small-firm associate required to follow my path and find a new exit strategy?
I always assumed that my youth (or quasi-youth) would guarantee me superstar status in connection with social media. I am not sure why I thought this, because my first foray into Facebook was a bit of a disaster. I was quite late to the party, joining years after I realized that everyone was doing it. To compensate, I went on a mad dash to accumulate as many friends as possible. I sent out friend requests to people that I had barely known, mistreated, been mistreated by and would not acknowledge if I saw them on the street. I would also accept anyone’s friend request. I recall that about a month after I joined, a man with no common friends sent me a request. His name was “Summertime,” he had no last name, and his picture was him without a shirt and holding what appeared to be an ax. I gladly accepted his request. Looking back, I shudder to think what a social media expert would have concluded was my personal brand based on viewing my profile.
Years later, when I became @ValerieLKatz, I forgot my Facebook failure and assumed that I would be a Twitter phenomenon. I believed, as with Facebook, that the only thing that mattered was to have a lot of tweeps.
I’ve always wondered what kind of salary contract lawyers make these days. Okay, not really, I kind of already know, because a lot of my friends are contract lawyers. But for those of you who aren’t familiar with the wonderful world of contract lawyering, the Wall Street Journal had an interesting article yesterday, by Vanessa O’Connell, on the trials and tribulations of these lawyers-for-hire.
The Journal editors decided to give the piece a cutesy title by using a play on words: “Lawyers settle… for temp jobs.” Lawyers are supposed to be settling cases, and now they’re settling for temporary jobs. Oh, that’s so very witty.
What the WSJ folks might not have realized is that when you’re an unemployed new lawyer in this kind of economy, or even if you’re an older one, you don’t really have the option of “settling.” It’s depressing, but you kind of just accept the fact that this is the hand that you’ve been dealt.
But maybe there is a bright side to this situation after all. Maybe these contract attorneys are making serious bank in these temporary positions….
[T]he imperatives of law enforcement distract soldiers and intelligence agents from their primary war-fighting mission. We don’t want our soldiers pausing on hostile battlefields to read detainees Miranda warnings, take down witness statements, and collect evidence in plastic baggies. They should remain focused on finding and killing al Qaeda terrorists.
Those inside the legal bubble know that it’s a terrible time to be graduating from law school, so as Ashby Jones notes, this Wall Street Journal article about the sucky job market for law grads holds few surprises. Well, really no surprises: it’s tough this year for law grads.
But it’s good that the Wall Street Journal is spreading the word outside of the legal bubble, letting non-lawyer readers of the WSJ know that the law school golden ticket is currently tattered and torn:
The situation is so bleak that some students and industry experts are rethinking the value of a law degree, long considered a ticket to financial security. If students performed well, particularly at top-tier law schools, they could count on jobs at corporate firms where annual pay starts as high as $160,000 and can top out well north of $1 million. While plenty of graduates are still set to embark on that career path, many others have had their dreams upended.
If you’re having a hard time explaining to non-lawyers just how shattered your dreams are, send this article along to them. It lays it out in a clear and concise matter, and includes simple, pretty charts explaining the supply-and-demand problem in the legal job market.
Now, what should you do if you’re in the enviable position of having post-graduation employment lined up?
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: firstname.lastname@example.org.
We currently have a very exciting and rare type of in-house opening in China at one of the world’s leading internet and social media companies. Our client is looking for an IP Transactional / TMT / Licensing attorney with 2 to 6 years experience. The new hire will be based in Shenzhen or Shanghai. Mandarin is not required (deal documentation will be in English) but is preferred. A solid reason to be in China and a commitment to that market is required of course. This new hire will likely be US qualified (but could also be qualified in UK or other jurisdictions) and with experience and training at a top law firm’s IP transactional / TMT practice and could be currently at a law firm or in-house. Qualified candidates currently Asia based, Europe based or US based will be considered. The new hire’s supervisors in this technology transactions in-house team are very well regarded US trained IP transactional lawyers, with substantial experience at Silicon Valley firms. The culture and atmosphere in this in-house group and the company in general is entrepreneurial, team oriented, and the work is cutting edge, even for a cutting edge industry. The upside of being in an important strategic in-house position in this fast growing and world leading internet company is of the “sky is the limit” variety. Its a very exciting place to be in China for a rising IP transactional lawyer in our opinion, for many reasons beyond the basic info we can share here in this ad / post. This is a special A+ opportunity.
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When Chintan Panchal decided to leave a global BigLaw partnership to start his own firm, he could only hope that he would face the high-quality problem of firm building that many had cautioned him about. Focused on the uncertainty surrounding of a new firm launch, he decided to tackle staffing needs, IT challenges, and financial planning requirements after he had built up his legal practice.
Panchal Associates LLP–a corporate/finance and outside general counsel boutique–was quickly off to a great start. Clients and matters were flying in the door, and Chintan soon had a team of lawyers and staff with a variety of operational needs. To continue building an excellent team and provide them with a competitive benefits package, to expand his physical presence to include a European practice and additional partners, and to scale his operations and IT capabilities to support this growing enterprise brought with it demands of time, money, and expertise. Chintan knew he needed help.
“With the assistance of NexFirm, we have upgraded the capabilities of our firm to meet, and in some cases exceed, the standards we were used to at our former BigLaw firms. Operationally, we can now attract and service clients we didn’t have the bandwidth to support in the past, and continue to build our team with the best and brightest legal talent in the industry,” said Chintan Panchal, adding “It has worked out quite well in our case; NexFirm is an essential partner for us.”
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