Asked and Answered

By John W. Olmstead, MBA, Ph.D, CMC

Q. I am the owner of a five-attorney estate planning practice in Denver. I have four associate attorneys. Three have been with the firm for over 12 years. Last year, an associate that had been with me for many years left the firm and started his own practice. I thought I was paying him well by virtue of a competitive salary and a discretionary bonus in addition to other benefits. I do not want to lose other seasoned attorneys. What should I do to provide more incentives for associates to stay with the firm?

A. Experience and research by our firm and others has demonstrated that the following, in priority order, are the key drivers of associate attorney job satisfaction:

1. Satisfaction with immediate manager or supervisor
2. Opportunities for training
3. Satisfaction with team and coworkers
4. Opportunities for career growth
5. Compensation
6. Opportunities for promotion

While compensation often is considered the primary factor related to associate satisfaction, I often find that opportunities for career growth and promotion play a significant role. Associates do take pay cuts for career growth and promotion opportunities in other firms — or, in some cases, starting their own firm.

A key tool that law firms should be using for managing attorneys is a well-defined career path/track. The critical components of a career track include well-defined levels, roles and responsibilities at each level, promotion criteria, and compensation plans for each level. Typically these are outlined and documents in a career advancement program policy document. For example:

1. Levels. Each attorney level within the firm (partner, non-equity partner, principal, senior associate, associate) should carry a specific and clear title.
2. Roles and Responsibilities. For each level, the typical roles and responsibilities should be clearly documented, including client service work and business development and administrative responsibilities.
3. Promotion Criteria. For each level in the firm, the criteria for promotion to that level should be outlined in the career track or career advancement program policy document. These criteria are often tied to competencies (knowledge, capabilities, and experience of the attorney), tenure as well as other factors.
4. Compensation. A compensation plan should be developed for each level. (salary, bonus, benefits, and other perks)

I suggest that you give some thought to developing such a program. As you start with levels, you will have to do some soul searching and confront the most burning issue — Is partnership an option for associates in your firm? Do I want partners? — and go from there.

Click here for our blog on career management

Click here for articles on other topics

John W. Olmstead, MBA, Ph.D, CMC, (www.olmsteadassoc.com) is a past chair and member of the ISBA Standing Committee on Law Office Management and Economics and author of The Lawyers Guide to Succession Planning published by the ABA. For more information on law office management please direct questions to the ISBA listserver, which John and other committee members review, or view archived copies of The Bottom Line Newsletters. Contact John at jolmstead@olmsteadassoc.com.