Small Law Firms

How Did Small Law Firms Survive -- And Recruit -- After The Market Went To $180K?

Not every firm is capable of keeping up with the Cravathians.

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“Breaking: NY To $180K!!! Cravath Raises Associate Base Salaries!!!” That was the headline right here at Above the Law on June 6, 2016, when Cravath rocked the world of Biglaw compensation — which hadn’t seen an increase in base salary in almost a decade — by increasing lockstep pay across all class years. This MoneyLaw standard soon became the industry norm, as over 100 firms joined in offering the new scale — even in second-tier markets (think Charlotte and Dallas), where the money goes a whole lot further.

But not every firm is capable of keeping up with the Cravathians. While some boutique firms have lots of cash to throw around, lots of small and mid-sized law firms are not able to play with bankrolls that large. As Law.com reports in a recent survey, firms that can’t offer the biggest paydays on the block worry about their ability to recruit and retain the best talent:

A recent Robert Half Legal survey revealed 62 percent of lawyers at small and midsize firms said finding skilled legal professionals is somewhat or very challenging, while 31 percent of survey respondents expressed concern about losing legal personnel to other job opportunities in the next six months.

But there are benefits for those who choose a legal career away from Biglaw. Career advancement and challenging work are tools that smaller firms are able to leverage in recruiting:

One of the biggest advantages small and midsize firms have over large firms is partnership track offerings. While it certainly depends on the experience level of the attorney, more small firms are offering partnership track upfront in place of a higher starting salary during job negotiations. Another benefit for employees of small firms? Opportunities for more responsibilities on a higher volume of projects.

Top candidates still respond well to these non-monetary perks:

In the same survey, 28 percent of lawyers said that, aside from compensation or bonus, flexible work arrangements provide the greatest incentive for legal professionals to remain with an employer. Challenging work or variety of assignments ranked second, receiving 26 percent of the survey response, followed by professional development opportunities, at 20 percent.

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There is also the matter of reducing the stresses of a high-powered legal career. Another survey reports 42 percent of lawyers cite reduced stress levels as the top part of their job they would change. While employers can’t do much about irritating opposing counsel or a demanding judge, they can offer flexible work schedules, telecommuting, and casual work environments to entice talented attorneys.

The big payday Biglaw offers is certainly nice, but it really isn’t everything.

headshotKathryn Rubino is an editor at Above the Law. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

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