Is now the time to rethink associate compensation?
Abstract: Law firms that still compensate associates the way they always have — using a lockstep model of regular, across-the-board annual pay increases — may be harming profitability and their competitive profile. One alternative is a performance-based system that rewards attainment of specified key competencies. However, if poorly implemented, a performance-based system could squelch associates’ motivation and lead to frustration, resentment and attrition. This article describes three best practices.