Most law firms have systems in place when it comes to salary and bonus determinations. In many instances, law firms evaluate an attorney’s work on a yearly basis, and at that time decide what salary increase the attorney will receive, if any, and whether the attorney will receive a bonus at firms that do not have lockstep bonus policies. However, some smaller law firms do not have systems in place to deal with salary and bonus determinations, and some smaller shops have flexibility when it comes to salary determinations. At these shops, it might make sense to proactively seek a pay raise.
I once worked at a small law firm that made salary decisions no more frequently than annually. One of the associates at the firm thought that he was underpaid, and the market rate was likely much higher than that associate was earning at the firm. This associate spoke to the managing partner at he firm about receiving a pay raise immediately even though the partners used to make salary determinations around the holidays. The managing partner told this associate to write a memo about all of the work that this associate did in the previous year, and how valuable he was to the firm. The managing partner said he would share the memo with the other partners, and they would use this information when deciding if that associate should receive a pay raise.
The associate showed me the memo he drafted, and it was masterfully written. The memo discussed all of the work this associate had completed for the firm in the proceeding year and how these tasks went above and beyond other associates at the firm. The associate also discussed how productive he was and how much money he generated for the firm, which he argued warranted a salary increase. My colleague also argued that it would be less disruptive to keep that associate at the shop with a higher salary than try to find another attorney to replace the associate that asked for the salary increase.
The managing partner eventually told this associate that his hands were tied until the annual review process was conducted. The managing partner did not want to give any kind of preferential treatment to the associate that asked for a pay raise since this could hurt morale and lead others to believe that the firm was being unfair in treating this associate better than other attorneys. The associate was not pleased with this outcome, but this firm policy made sense. Managing partners need to think about the good of a law firm and its employees at large and not necessarily about the needs of one individual attorney.
However, at the annual review process, this attorney ended up receiving a better compensation package than he might have received if he did not ask for a pay raise earlier in the year. Evidently, the memo this associate drafted arguing for a pay raise had a substantial impact on management at the firm, and they decided to increase this associate’s salary so the attorney had an incentive to stay at the shop. Some of the other associates at the firm wished that they had also spoken up sooner about requesting a salary increase so that they too could have received an increase in their compensation.
Of course, asking for a pay raise, or asking for more compensation of any kind can be awkward, and may be impossible at some shops at which people are paid a set amount depending on experience. However, attorneys should not be afraid to ask their employers for more money. Even if attorneys are not immediately paid more compensation, this could set the stage for a higher salary in the future.
Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at jordan@rothman.law.