Pay Hikes Are a ‘Superficial’ Solution to Well-Being in Big Law, Associates Say

There is a growing desire among mid-market employees practicing in large Pennsylvania-based law firms for companies to revise billable hourly requirements due to concerns about mental health and work-life balance.

American Lawyer’s Midlevel Associates Survey 2021, released last week, highlights some of the key challenges faced by employees in Big Law. One of the most common feedback from employees, regardless of their company, is how the billed hours are being used to evaluate their performance.

The result is that remuneration is directly linked to the number of hours worked and not to other qualitative factors.

Employees at Dechert, which has industry-leading salary and bonus scales, say employee salary increases are in part an attempt to discourage talent from moving into companies in the second 50 of the Am Law 100. These companies may offer them more or more free time, manageable workloads for a lower salary.

“Many of our practice groups work far beyond the normal billable hourly requirement,” said a Dechert employee on condition of anonymity. Salary increases “tend to seem like a tactic for companies to in some cases discourage their best talent from going overseas just to get a week or two off work and get out under an above-average workload”.

Even companies that can’t keep up with the market leaders try to use salary increases to keep them loyal.

In August, Fox Rothschild raised employee salaries to keep employees from being lost to companies using the Davis-Polk scale such as Morgan, Lewis & Bockius, and Dechert, the firm’s leadership said.

Many Pennsylvania-based corporate executives and middle-level employees at Big Law said that high billable hour requirements exacerbate burnout and mental health.

Executives from two Pennsylvania Am Law 100 law firms, speaking on condition of anonymity, said competition to recruit and retain talent is driving companies to overpay for entry-level salaries while increasing pressure on employees, at the festival.

“It puts employees in a bad position with huge goals on their backs if they don’t bill for a certain number of hours,” said a company boss.

In the mid-level survey, several Dechert employees said they value the additional compensation offered by the spring bonuses, but cited it as a superficial solution to the current workload and staffing issue the company is facing.

“I think if management is really committed to improving the quality of life for employees, they need to train new hires or realize that they are unable to say yes, or at least at least, to every issue a customer brings to us to say yes to the schedule originally requested by a customer, ”said one employee.

A Pittsburgh-based Morgan Lewis employee, who has also adjusted his employee compensation to reflect the market, said the increase was welcome. However, to truly ensure employee wellbeing and keep employees, the company should take more individualized steps to get in touch with employees, the employee said.

But many employees consider this challenge inevitable to practice in Big Law.

Another Morgan Lewis middle-tier employee, speaking on condition of anonymity, said she sees her role as one defined by customer service at all times. As long as the customers are running out of time, the operator said, “it’s just the nature of the beast.”

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