Dos and don’ts for today’s compensation plans
Abstract: The past decade has brought sweeping change to the legal industry, from the influx of Millennials into law firms to growing competition from alternative legal services providers. Yet many firms have clung to compensation plans first devised years ago, in a very different climate. Firms that have been stubbornly holding out in hopes the pendulum might swing back are beginning to recognize that they need to adapt their plans to today’s realities. This article highlights some critical dos and don’ts that can help ease the transition. A short sidebar discusses a recent study backing up the notion that providing greater incentives for leadership activities and weaker incentives for billable hours can pay off for law firms.