Could Austerity Be a Word of the Past for Big Law?
The Snark, Fulton County Daily Report
Merriam-Webster has weighed in on the 2010 Word of the Year and the winner is ... austerity.
Big Law's Word of the Year was a toss-up between a series of words conveying a similar concept, but in the end, austerity is a great choice for Big Law as well. Thanks to all of you who voted and nominated words. All five of you are deeply appreciated.
Merriam-Webster based its word choice, in part, on the high number of people visiting its website to look up the term. Apparently, all the news coverage of the debt crisis motivated people to get out their laptops and discover a new word. I imagine most of you reading this column already had first-hand experience with austerity.
Big Law lived the definition of this word in 2010 through its continued practices of lowering spending and reducing benefits. Nothing says austerity like cutting off the free fountain soda, laying off employees, reducing salaries and charging remaining employees for stamps, refrigerator usage and local phone calls.
But who can complain about the loss of perks that were excessive anyway? Did we really need a private dining room and free acupuncture? Weren't paid sabbaticals a little over-indulgent? Who really used that gratis gym membership, anyway? Living with Big Law austerity is nothing compared to living with the austerity measures required by many who were laid off by Big Law and other companies in 2010 -- which still doesn't mean people aren't whining in harmony about the lack of raises.
But wait! I've spotted a few indicators that the end of Big Law austerity may be on the horizon -- and the return of even a few perks and benefits are enough to give a Cog hope.
BONUSES ARE BACK!
Big Law's austerity measures these past few years included hacking salaries and bonuses across the board. The "market raises" of the good old days were quickly countered by "market adjustments" that slashed salaries and bonuses as a means of keeping money from flying out of the coffers.
But toward the end of 2010, a significant trend started to emerge at Big City Big Law -- you know, the Big Law movers all others follow like sheep. Big City Big Law started doing something that many of the youngest Cogs previously believed to be mere folklore: Big City Big Law announced the return of associate bonuses! Nothing says recovery like a big, fat associate bonus.
These announcements boomeranged us back to the good old days of "matching," where firms started competing to meet or up their competitors not just to keep pace with the Joneses but also to retain associates. What did I hear? Big Law is working to retain associates? Indicating that, like, associates add some sort of unique value? That they aren't just instantly replaceable? Wow.
VOLUNTARY ATTRITION IS BACK!
But maybe, just maybe, money isn't Big Law's biggest concern. Maybe Big Law should worry about losing its billable entities. Otherwise known as, you know, its lawyers. Slowly, but surely, associates and partners are starting voluntarily to leave Big Law for other options -- including other firms and in-house positions, or even to start their own shops. It's been years since I have seen a colleague leave who was not asked politely -- or not so politely -- to do so. But it is starting to happen. What a boost for morale. Just the thought that you could be hired to work elsewhere or hang your own shingle and survive -- even if you are perfectly content -- makes working that much more rewarding.
Attrition at Big Law is part of the formula. Associates must leave in large numbers to ensure that they are not all vying for a few partnership spots. Big Law needs fewer of them as they get more experienced. But with the downturn, no one was choosing to quit and go operate the family farm. No one was playing Big Law Bounce and switching from firm to firm to get raises. No one was doing anything but hanging onto their Big Law gig with a death grip.
It is sad to see people who clearly loathe their jobs churning it out every day and trying to smile just to stay employed. But the news reports, and word on the street, show movement -- voluntary movement, at that! People are leaving of their own free will for new jobs that they want to take. Amazing.
Granted, these signals of recovery and free-will job movement are in their infancy. I admit all this could come to a screeching halt. So, for now, austerity is still the word. Even if you suspect people are lining up to hire you away and stuff more cash in your pockets, be careful before you quote that old Johnny Paycheck country song to your boss -- you know, the one with the lyrics that say, "Take this job and shove it. I ain't billin' here no more!"
