In response to the pandemic many law firms reduced the pay of owners, associates and staff. Many of these moves were made specifically to avoid layoffs while managing the uncertainty associated with future cash flow.
During the last six months firms have adapted to a new way of operating and the feared decline in revenues has been less than expected for many.
As daily operating income begins to stabilize and performance appears more predictable, we’re seeing firms begin to restore some of the previous reductions. Indications are that many firms are proportionally restoring compensation levels for all impacted personnel. For example, if they had previously reduced pay by 20% they are restoring half or 10% of the salary across the board.
One firm announced the decision to restore staff and associate compensation to pre-pandemic levels. But, here is the interesting thing, the firm is leaving the partner pay-cuts in place. This announcement by Crowell & Moring struck me as special. It reminded me of many lessons learned from Simon Sinek’s Leaders Eat Last. The partners of Crowell &has Moring are sending a strong message, the associate and staff personnel of Crowell & Morning are valued. The partners are going to take care of them before restoring their own pay.
Culture takes on a lot of different looks and this statement by an international law firm tells us that they value their
How has your firm responded to the pandemic?