March 20, 2006
Brits find Humor in US Associate Compensation
A March 15th post on The Lawyer.com read “…the US bonus race is a faintly comic sideshow. Over here, what matters are the prospects for advancement—and the US firms barely score.” The comments were in reference to research about the partnership prospects across the U.K., including those in the 30 significant US/international firms in London.
These observations should not be dismissed lightly. US firms really do appear to have overestimated the importance of associate compensation in attracting and retaining talent. Associate compensation is not the No.1 reason for lateral movement. It is professional development—or in the words of The Lawyer.com, prospects for advancement—that counts. Unfortunately, higher associate salaries seem to have become an ugly aspect of a law firm’s institutional ego—“We are the biggest and the best and therefore must have the highest paid associates.”
Midsized firms should take a lesson from the Brits. Devote more effort and invest more dollars in developing your talent into well-rounded leaders within your firm. As a payoff, you will take advantage of a work-experienced talent source—disenchanted associates looking for real professional growth and advancement.
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Filed under Compensation, HR by Tom Collins