I’m an associate at a very small boutique law firm. I started at a new firm earlier this year (January) at 115k base, with a decent bonus. By the end of this year, due to some long term engagements, I will have made the firm around 400-440k (not sure what the final total will be after write offs, but at least 400k). Am I justified in asking for a bump in pay, to maybe 125k? Or should I ask for a higher bonus?

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I would encourage you to request a pay increase. Bonuses are nice, but there's no guarantee you'll get it next year. An increased base pay is a sure thing for the future. And I think you should get concrete numbers about how much money you've made them when you go in for your negotiations.

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Yes.

I don’t want to discourage you from asking for a raise but I would focus more on the value you bring and what salary your skills bring in the market for the reasons below. Also make sure you really understand how the business operates.

1. If you’re a new associate how much would you make if you went out and started your own practice? A big reason your firms clients do business with them is likely because of their reputation and senior level relationships; which you did nothing for.
2. Firms have overhead (office space, HR, IT support, equipment, etc). Factoring these in significantly reduce firms profit.
3. Factor in your other benefits such as healthcare, retirement, etc.
4. One common mistake I see a lot of new associates make is they see their published rate per hour and think “oh I make the firm 500k+ a year and my salary is only 115k; that’s not fair!” It’s pretty common in professional service firms to officially advertise really high rates but usually in reality the rates are heavily discounted to make the clients feel good. So unless you actually see the billing there is a good chance your “firm rate” isn’t what clients are actually paying.

As an associate, how exactly have you made the firm $400k? I totally understand that you may have had a hand in some engagements that netted that much, but that is far different than your actions directly resulting in making those engagements come about.

Ask for a raise, but be clear as to what you are truly worth when doing so. Your ego may want to lay claim to that every bit of that $400k, but your manager may see it differently.

Associates tend to take billable hours worked times their published rate to say that’s what they made the firm but it’s normally not that black and white. But given professional service firms can bill 150-300 an hour and someone will normally work at least 1800 billable hours a year 400k isn’t that far fetched but it’s nothing crazy either.

Just ask for a raise and point to the successful engagements you’ve had with clients. Getting into the specifics can be messy, but if you’re an overperformer they will recognize it once you ask.

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