National Jurist - January 2008 - (Page 41) CAREERHOTLINE Salaries, negotiating and debt Q: What are the benefits of a large firm’s lock-step associate salary structure as opposed to a more variable salary at a smaller firm? A: It all comes down to security versus flexibility, said James Cotterman, principal at Altman Weil, a national legal consulting firm. Lock-step salary structures – where salaries are set according to associate class, with each member of a class making the same base salary – offer the security of knowing exactly what you’ll make during each year of your associate career. In addition, lock-step structures give students more guidance about how they’d better perform to keep their salaries, Cotterman said. They detail what’s expected of new associates in terms of billable hour quotas and other salary requirements. But lock-step structures tend to be rigid: No matter how well you perform, unless the firm has instituted some merit-based system of compensation, you’ll be getting just as much money as the next associate in your class. Small and midsize firms, on the other hand, are more likely to offer you flexibility in terms of starting salaries, raises, and advancement, Cotterman said. This may mean you’ll rise sooner at a smaller firm if you perform well, but it can also mean less security about your salary and advancement options years down the line. Whether you decide to go with a lock-step firm or a more flexible salary option, you should research what the firm’s compensation structure entails, said James G. Leipold, executive director of the National Association for Law Placement (NALP.) You should also be aware that other alternatives – such as merit-based compensation at some large firms – are being tested. Though large firms won’t negotiate starting salaries, Leipold recommended discussing whether the firm periodically examines its compensation structure. By Ursula Furi-Perry, J.D. ADVICE Thompson said some students find it psychologically easier to go into a lock-step salary structure than to deal with the pressures of negotiating. Your best bet is to arm yourself with numbers, Thompson said. NALP’s yearly “Jobs and JD’s” report details what new lawyers make by practice area and location. Some legal staffing agencies also keep track of employer-reported salaries of new associates. Thompson recommends quoting a range between the 25th and 75th percentile of what new lawyers make in your city, field and specialty. This may work out to your advantage: Thompson said he’d seen examples of employers who didn’t realize they were paying too little until candidates backed up their salary requests with research. Q: I want to work in a public interest career but have a boatload of debt. What are my options? A: The old adage, “do what you love and the money will follow” can be hard to believe when you’re weighed down by an average of nearly $80,000 in debt. You could join the herd of law graduates who enter private practice for a few years, pay down their debt and then move on to an alternative legal career. As far as personal choices, there’s certainly nothing wrong with going to a large firm initially — both for the money and the experience — as long as you understand and accept the job’s expectations and don’t mind delaying your ultimate career plans. But before you relegate yourself to a job that isn’t the perfect fit, consider debt repayment assistance programs, Thompson said. If you’re still in school, research public interest scholarships. These options can reduce your overall loans, making it possible to accept your dream position even if it comes with a more modest salary. You should also live within your means and begin managing your debt as early as possible after graduation, Thompson said. By taking an honest look at the numbers and getting help with budgeting, you may find that you can stretch a public interest salary to cover your expenses. Q: How do I negotiate a starting salary at a smaller firm? A: If you’d rather repeat your first semester of law school than talk money, you’re not alone. Most students are uncomfortable negotiating salaries, said Louis Thompson, assistant dean of career services at Temple University Beasley School of Law. In fact, January 2008 Got a career question? Submit to Ursula at furiperry@verizon.net THE NATIONAL JURIST 41
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