Field Fisher Waterhouse to pay associates on merit
05 February 2010
Law firms' remuneration structures are surging forwards into the 1980s as more and more firms decide they should pay associates according to "
ability", rather than the number of years they've had their knees under the desk. Associates at
Field Fisher Waterhouse are latest to benefit.
Over the past year associates at FFW have been appraised on five core competencies - business and firm management, client relationships, people and team management, personal effectiveness and technical expertise. And from 1st May the salaries will adjusted to reflect these scores,
Legal Week reported.
FFW is following in the footsteps of several other firms - including
Lovells,
Norton Rose and
Simmons & Simmons which
have recently announced similar moves. Charlie Keeling, FFW's HR
Director, told RollOnFriday that over three quarters of his counterparts at other
firms to whom he had spoken had said that they were seriously
considering following suit. It's a serious trend.
Keeling said that although no current salaries would be cut, they would no longer rise automatically unless associates scored well in their appraisals. However, those whose performance is outstanding can expect to leapfrog the equivalent of up to two years' qualification in extra pay.
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FFW associates get their fair dues |
The traditional law firm model of paying associates on the basis of their post qualification experience ("PQE") has its attractions - it's easy to implement and requires little management. However, it is widely seen as an archaic throwback to the days of gowns, articles of clerkship, spanking, port and crumpets - and, more to the point, a licence for mediocrity.
However, while performance related pay can clearly provide an incentive for the most ambitious and talented individuals to excel, it brings its own challenges - not least the potential for unfairness and distracting office politics. But, a time when fees are under pressure and clients are demanding maximum value, this move seems inevitable. Welcome to the 1980s.