Negotiating Starting Salary Law Firm
If you`re currently employed, compare the structure and timing of your current business or company`s bonuses, especially if you plan to receive them in the next three to six months. What will you essentially give up if you take on this new role before you get that bonus? 7. Know that your “institutional memory” has value. If you`ve been in a company long enough to learn “the system” and build a good relationship with others in your office, you`re inherently worth more than what you`re paid for. The “cost” of hiring a new person to fill your position will almost always be more expensive than giving you a decent raise. In addition to spending time and money trying to find a new employee to replace you, your employer is inevitably concerned about personality conflicts that might arise, or whether or not a new person really lives up to their resume when it comes to bringing a new person into the mix. Avoiding such expenses that come with hiring a new employee has its own intrinsic value. I strongly advise against publishing an issue first, otherwise you risk bidding against yourself. Instead, ask the company or business to provide a number first. If there is pressure to provide a number, include a range for which you will be considered, for example: “I will be considered for senior management consulting positions in the next salary range of $__ to $____. “If you don`t get the number you want at the bargaining table, find out if the company will consider an increase after six months. Keep an ongoing list of parameters and goals you will achieve in the first six months and return to the bargaining table with proof of your success (i.e.
more weight to show why you deserve a higher salary range). Repayment of money preparation: Some employers, usually law firms, pay for cash preparation programs and/or costs associated with bar coverage. You want to know if your employer offers a refund and, if so, the parameters of that refund. To negotiate or not to negotiate: that is the question here. Many 3Ls and graduates are debating whether they should negotiate salary and benefits for their postgraduate law work. While there are many conditions in an offer that need to be negotiated, it can still be difficult or tedious to negotiate them yourself, especially if you use another company`s offer to your advantage. It`s helpful to work with a legal recruiter so someone else does the “dirty work” for you so you can stay above the fray and join the firm on good terms without the hassle of tough negotiations that muddy the waters. Before moving on to the final stage of an interview process, you need to be ready for the salary interview.
You need to know your numbers – the highest range you`re looking for versus the lowest range you`re willing to accept. That means researching what competitors are paying – and knowing the fair market value for someone of your level. I recommend using Payscale.com and salary.com to research salary scales for companies, as these sites allow you to apply filters for years of experience, location, size of the team you`ll lead, and more. Both locations also offer ranges from 10% below the 90th percentile. You can also use Comparably.com for company salary research. Salary negotiation issues arise at all stages of the career, including job search, as well as people who have been working for the same employer for some time and want to receive a raise. You are invited to make an appointment with a CDO lawyer to discuss salary negotiation issues that affect you. While salary is important, remember that it`s the total compensation that counts. Other parts of your compensation package may include stock options, a sign-up bonus, an annual performance bonus (a certain number or percentage of salary), annual salary increases, a relocation option, health insurance, and 401(k).
All organizations have budgets and nowadays these budgets are much lighter than in the past. Your salary is part of a larger picture that includes departmental budgets and salaries of existing employees. There are several reasons why an employer may offer a low wage. All companies, in order to remain competitive, are looking for the best deal. In some cases, a low-level offer is simply a way for companies to see if they can get the talent they want for less money. Obviously, this is a risky move that can result in the loss of a candidate. Depending on the position, some employers are willing to take this risk. Another possible scenario is that they haven`t hired in a while and their salary information is outdated. Or there was a breakdown in communication between the department head and the human resources department when determining your salary. As with most things in life, there are two sides to every story. It is very important to keep an open mind and a calm attitude when talking about your legal salary. Well, you probably won`t negotiate ALL of these points.
And even if you tried, you would have to make concessions on at least some things. In any type of salary negotiation, it is important that you fully prepare for the interview: if you feel that there is resistance to the counter-offer, or if you believe that the company has a locked structure, suggest an alternative compensation structure. I`ve seen cases where partners have agreed to bring X deal into the company on a certain date, and their base salary is significantly increased. In other cases, companies pay more for your base salary, but delay your eligibility for bonuses. While your salary is often on the table when it comes to in-house lawyer job offers, it`s far from the only negotiable compensation. Click here to read Part 2, which covers the ins and outs of negotiations and how wage negotiations with your potential employer differ from the types of negotiations most lawyers conduct. I`ve had clients change corporate counsel with a base salary that`s lower than their current salary, but compensated for that with total compensation due to the bonus structure, stock options, and other incentives. You`re starting what hopefully is a long-term relationship, so focus on your ultimate career goal, the conversational professional, and your agile approach, as a lawyer`s salary negotiation reflects your ability to be a strong team player and close deals. 24/7 availability for someone with this core value could very well be a higher priority for bargaining than base salary or other monetary factors. If an employer asks for salary requirements before the first interview, give them the appropriate salary range that you calculated based on the two steps above. Know that you don`t want too much reach and that the low end is fair play, so it should be a sufficient salary that you can accept.
To keep the bargaining lines open, you can also tell the employer that even if this is the area you`re looking for, they can be flexible for the right opportunity. Here`s a little story I didn`t include in the section above of withdrawing the offer because the graduate didn`t try to negotiate his salary; Instead, he asked follow-up questions: 10. Consider “alternative” trading points other than money. While your company may have financial constraints that prevent it from giving you that extra $5,000, it may be open to considering an “alternative” form of compensation, such as an extra week of paid vacation. Other items they may pay as part of your total compensation include bar association fees, ARDC costs, a cell phone or a company car. Each of these and other “alternative” forms of compensation offer your employer a potential tax deduction as ordinary business expenses that they might not otherwise receive. Many law firms pay bonuses, while other types of legal employers typically do not. What you need to know about premiums is whether your employer pays them and if there are measurable results, such as meeting a certain number of billable hours. Or is the bonus discretionary? For example, if a firm does not have a billable hours requirement, but lawyers do work long days, employees have no way of judging what is expected of them and could fall into the trap of working long, irregular hours. Indeed, these companies pay the same salary to their entire starting class. Salary negotiations are one of the most delicate and potentially unpleasant aspects of the job search.
But if you prepare and take a risk, your efforts can pay off in the long run and allow you to get better overall compensation. For most of us reading this newsletter, the idea of getting a six-figure salary right out of law school was nothing more than a dream; But for our friends who chose the 100+ law firm route, it was a reality. Sure, these same lawyers can work like dogs every day of the week (and on weekends) and are obsessed with meeting their billing needs, but when their paycheck is deposited into their account, they manage to find a way to live with it.
