Junior attorneys may have recently found themselves wondering whether it’s time to request a raise, especially as salary increases at larger firms have been widely discussed in legal news outlets. It’s important to keep in mind that most lawyers work at smaller shops.
Cravath recently raised their associate salary scale and several firms quickly followed suit, reports Above the Law. This has caused great excitement about how often lawyers receive raises.
How Much Do Lawyers Get Paid?
Salary structures of lawyers vary wildly based on practice area, experience level and firm profitability. Larger firms tend to offer higher salary structures while attorneys with specific skills may also negotiate for increased salary offers.
Law firm salaries can also vary depending on the economy and demand for legal services in various fields of law. Real estate attorneys typically earn an estimated average annual salary of $67,000 while immigration lawyers generally receive lower compensation packages.
Bonuses play a critical role in whether or not an attorney qualifies for a raise, with many lawyers receiving substantial bonuses that increase their overall earnings substantially. Other factors that impact bonuses may include performance reviews and billable hours; attorneys who display exceptional work or bring in new business are more likely to qualify for increased bonuses.
How Often Do Lawyers Get Raises?
Economic conditions, market demand and firm performance all play a role in salary adjustments. Firms may offer higher pay in certain practice areas to attract specialized talent.
Junior associates generally experience greater salary increases than mid-level and senior associates. Some practice areas, like corporate law and intellectual property law, require attorneys who are in high demand; these firms therefore pay an increased salary.
Regional differences also play an integral part in salary adjustments; firms in major cities often offer higher compensation than firms located elsewhere.
Overall, associates have seen significant raises that reflect their expertise and contributions to a firm’s bottom line. Some lawyers are worried that recent big-law salary increases might prompt more poaching from firms with lower profit margins; it will be interesting to watch how this plays out over the coming months. When looking at specific firms like Cravath, Skadden, and Latham for insight into law firm salary structures.
When Is the Best Time to Ask for a Raise?
The best time and place for asking for a raise depend on several variables that vary by company, but professional-networking site LinkedIn conducted extensive analyses that indicate January, June and July are typically good months to seek an increase.
As far as specific dates go, it’s essential to stay aware of how frequently your firm offers raises and budget cycles so you can plan accordingly and ensure you don’t miss your chance to request one.
As part of your research on salaries in your field, either through online resources or direct inquiry, it is also crucial that you conduct some salary research. This will allow you to establish whether or not your current wages are fair and create a strong case for why a raise may be warranted – with evidence such as past performance reviews, client compliments and data reports that show why this raise is warranted. Whenever possible, keep this data ready when meeting with your boss.
What Is the Best Way to Ask for a Raise?
No matter the industry, salary increases depend on performance and company finances. Leadership decisions, strategic direction and execution impact whether raises are forthcoming. Furthermore, industries affected by macroeconomic trends can change their labor markets dramatically which can have a direct effect on salaries.
Recent wage hikes at top firms have significantly altered the landscape of legal compensation. Cravath set an important example last year by significantly raising starting salaries for first-year associates – an example that many other firms are now following suit with, while lateral hiring increases at some smaller firms as they attempt to attract experienced attorneys.
It’s best to raise the subject early, before your annual review or any significant milestone in your career. Make sure you’ve prepared by rehearsing and gathering evidence of accomplishments and impact on the firm before approaching anyone about asking for more money – this will allow you to present yourself as confidently and clearly during any conversation relating to this request and increase the chance that a raise may come your way!