So fist year associates raised again. Just curious how this is sustainable in the firm - in the back rooms where budgets are made - is it a discussion then that is just raise rates percentage to cover, or squeeze more hours outta the ones we have and fire/let go more including counsel and partners that are under the max or would they look at average…. Happy for first years but I don’t see the sustainability. At some point clients wont pay more. Make me feel better about the calc here. Lol.

likefunny
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Firms don't need to raise rates to cover pay increases.... partner profit is way up compared to associate pay... and partners make way more money than ever before compared to associates. They've also raised rates every year since the last pay increase even though associate wages stagnated. People need to stop being caught up in this nonsense, firms could comfortable pay way more with little to no change. Rate increases are to make more because they can; they aren't out of necessity. This raise isn't even a raise, it is is like 5% which doesn't even track inflation

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Dawg… did you have item fourth write this short novel of yours, or are you just that quiet at work? Lmk and I’ll staff you…

funny

Rates increase every year even when the lockstep does not, so there’s some built-in capacity to accommodate these kinds of raises every few years. But certainly it increases the pressure for associates to bill their full hours expectation, and it worsens the compression and pressure at counsel/NEP when comp stops being lockstep. You risk ending up in ATL when you mass lay off associates, but not if you mass lay off “under performing” NEPs (with performance no longer measured exclusively by hours billed).

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Tell me you struggle with reading comprehension without telling me you struggle with reading comprehension.

likefunny

Yeah, surely raising first year salaries by 10k each is not sustainable in comparison with PPEP increasing over 20%. I wonder where the money will come from.

likefunny

Backrooms???

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