What are your thoughts on contingent pay for associates based upon a percentage of billable hours collected? What percentage is fair? What about when paid in conjunction with a base salary?

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I disagree with making pay contingent on billables. Associates do not normally have the connections/resources/information to bring in business for the firm or generate or control workflow. They shouldn’t be punished by receiving less pay during slow periods. They also don’t yet have the knowledge or experience (and consequently, the responsibility) of making game-changing decisions on a matter, and so it’s a bit backwards to make their compensation contingent on the decisions of someone who does have the requisite knowledge/experience. The base salary associates receive is really compensation for their availability when there IS work to be done, and also for their availability when there MIGHT be work to be done.

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Agree with this. I have basically 0 control over my hours, and it’s frustrating enough that my bonus is based on them. Can’t imagine what I would feel like if it were my entire salary

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I billed over $450K last year and the firm only collected $320K. There’s about $100K in fees that never went out (nor was written off). I don’t know why. I’m sure they have their reasons, particularly in our current climate. I can’t tell the firm when to bill. My pay shouldn’t be contingent on something so far out of my control.

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Follow up: If contingent pay is used as a bonus, what percentage is normal? Let’s say the base pay is about 60% of the market rate.

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