Average Attorney Salaries Hold Steady Despite Hiring Slowdow

Summary

Law Firms have long been renowned for their steadfast adherence to a standard pay scale when hiring new lawyers to their ranks. Despite tight budgets, the majority of Law Firms have held firm to the traditional compensation package for their first-year associates, and new hires can expect to be compensated at market level or slightly above.


For years, Law Firms have followed a standard compensation package for new associates. This includes a base salary plus a bonus structure which is used to reward performance and dedication. This practice has largely remained unchanged as Law Firms remain committed to finding the right talent and compensating them accordingly.

With the current economic climate in flux, Law Firms have been forced to make difficult choices in order to remain financially viable. Pay cuts, reduced workforce, and benefit reductions have been used to combat decreased revenues. Despite the financial pressure, most Law Firms have not reduced salaries for first-year associates, even though there are fewer of them.

As the legal market increases in competitiveness, many Law Firms have begun offering additional benefits, such as signing bonuses, tuition reimbursement and other specialized benefits, to attract new associates. These supplemental benefits have allowed Law Firms to remain competitive in the current market and ensure that new hires are well compensated for their work.

While Law Firms have been largely steadfast in their commitment to maintaining the traditional pay scale for first-year employees, it's not without its challenges. Costly retirement packages and the increasing cost of benefits are burdens the long-term fiscal health of the firm. Despite the pressures, Law Firms remain committed to finding the best talent for their ranks and adequately rewarding them for their work.

In conclusion, Law Firms have traditionally held firm to a certain pay scale for first-year associates. Despite the financial pressures that could have forced them to reduce salaries, Law Firms have largely refrained from doing so. This commitment to their employees has allowed Law Firms to remain competitive in the market and attract the best talent available. Additionally, they have implemented supplemental benefits to reward new hires and ensure they are adequately compensated for their work.

Questions Answered In This Article

 

What is the average starting salary for large firms (more than 75 attorneys)?

According to the 2003 Salary Guide produced by The Affiliates legal staffing firm, the average starting salary for large firms (more than 75 attorneys) is a 6.8 percent decline.
 

Has there been any significant changes in starting salaries yet?

Law school career services professionals reported that while they have not seen major changes in starting salaries, some firms have cut back slightly on hiring or pushed back start dates.
 

What is the average salary for first-year associates joining large firms in Chicago?

According to Diane Downs, career services director at the University of Chicago School of Law, in 2002, Chicago graduates joining large firms received average starting salaries in the $125,000 range and said early indications are that 2003 offers would be similar.
 

What is the average salary for first-year associates joining small to mid-size firms?

Douglas Masters, hiring an attorney with the Pattishall, McAuliffe boutique firm in Chicago, said his small to mid-size firm's salaries have been flat for first-year associates.
 

What is the average salary for first-year associates joining firms in Atlanta?

Beth Kirch, director of legal career services at the University of Georgia, reported that while salaries have held firm at the big firms in Atlanta, smaller firms have increased their salaries to remain competitive.
 

Climbing first-year associate salaries have reached a plateau at large firms, while starting offers from small to mid-size firms are inching upward slightly, according to the 2003 Salary Guide produced by The Affiliates legal staffing firm.

The 2003 guide actually reports a 6.8 percent decline in starting salaries for large firms (more than 75 attorneys) and a 3.6 percent decline for mid-size firms of 35 to 75 attorneys. At the same time, smaller firm salaries increased by an average of 2 percent. Those figures are based strictly on starting salary compensation and do not include bonuses, profit sharing or other incentives that may impact total first year compensation.

Salary data used by The Affiliates was compiled through the company's job searches, candidate placements and salary negotiations and did not identify individual firms. Perhaps not surprisingly, the large national firms contacted by The National Jurist reported their salary levels as flat, although several said they had heard that other large firms were cutting back.

Law school career services professionals reported that while they have not seen major changes in starting salaries yet, some firms have either cut back slightly on hiring or pushed back start dates. Some 2L summer associates found their hours cut back - a few by as much as half - as firms trimmed salary overhead.

"For the ones coming back with offers [from last summer], the salary seems to be about the same," said Diane Downs, career services director at the University of Chicago School of Law. "We haven't seen salaries go down."

Downs reported that 2002 Chicago graduates joining large firms received average starting salaries in the $125,000 range and said early indications are that 2003 offers will be similar.

Douglas Masters, hiring attorney with the Pattishall, McAuliffe boutique firm in Chicago, said his small to mid-size firm's salaries have been flat for first-year associates.

"We don't anticipate an increase - we would only do so if there was pressure to do it to remain competitive," Masters said.

Beth Kirch, director of legal career services at the University of Georgia, said that despite a hiring slowdown in some practice areas, salaries have held firm at the big firms, while actually increasing at smaller firms in the Southeast.

"It's been holding steady," Kirch said. "In almost 20 years in the field, I've never seen salaries roll back - they tend to hold steady for a few years and then escalate again. In Atlanta, small firms are not paying the six-digit salaries larger firms are, but they're trying to go after the same students, so they have to raise their salaries somewhat."

Marcia Cook, recruiting manager for the national Blackwell Sanders Peper Martin firm, said that firm starting salaries were approximately $80,000 in Kansas City, Mo., and $90,000 in the St. Louis market in 2002. She indicated they would be the same or slightly higher in 2003.

At the University of Texas in Austin, assistant dean of career services Kathryn Richardson said she had not detected any salary rollbacks, with firms in the Texas market averaging $90,000 to start, from a low of $40,000 to $50,000 to a high of $140,000.

Know the average associate attorney salary nationwide here.

This story appeared in the January 2003 edition of The National Jurist, www.nationaljurist.com.

Click Here to View the 2015 Salaries of the Top Law Firms.