Howrey's New Learn-As-You-Go Strategy for First Years, and How It Can Help Small Firms
Howrey LLP will employ a novel strategy for some of its first year associates arriving in September that will save the firm money and allow it to both keep the flow of new talent coming in and train the new associates as they go. It will also allow the firm to forego the deferrals that have raised the ire of many law school graduates and tarnished the once-golden reputations of many of the elite BigLaw firms.
The firm will lower some of its first years' salaries and place less of an emphasis on billable hours. Instead, the firsties will "spend only one-third of their time in their first year on billable
client work. The rest will be spent on pro bono work and training
programs," according to the JD Journal
In their second year, "associates will work on client secondments, judicial externships, and
other advanced development opportunities. Billable hours in the second
year will be capped at about half of total hours," the JD Journal reports.
Of course, there's a concomitant drop in salary, as well. The Wall Street Journal's Law Blog reports that
"associates starting in September will make $125,000 (comprised of a
$25k up-front bonus, and a $100,000 salary). Second-years will make
$150,000 (comprised of a $125,000 salary and a $25,000 bonus at the
completion of the project)."
Enrollment in the program is limited, however, but I imagine that there
will be a natural breakdown among associates of those who want to earn
a full first year's salary and subject themselves to the grind of a
full billable hours requirement and those who will take less money for
more mentorship and fewer hours.
Although, from my perspective, I would much rather take the second
option, so maybe the breakdown won't occur so naturally after all.
This tactic can be an excellent way for small firms to expand their
roster of attorneys as well. Small firms might want to take on more
attorneys right now in order to get more business flowing, but simply
can't make multitudinous new hires because of financial pressures.
Tearing a page from the Howrey playbook, small firms could offer
attorneys a way to ease into the firm, possibly through contract work.
Firms could even extend offers to pro bono organizations that would
allow attorneys to use the firm's offices and consult with attorneys on
pro bono projects. (It could be a great way to satisfy some of those
required pro bono hours while doing some business networking, too.)
The main point is that in tough times, firms have to get creative if
they are going to recruit and retain talented attorneys. Howrey has a
history of doing things differently than the rest of BigLaw, and this
new program sounds like it could be an attractive alternative to
deferrals or low-pay public interest work that many of the other firms
are offering to their incoming first years.
Adopting similar tactics could increase your firm's allure as well.