The Firm’s Side of the Table

This section examines the summer program from the firm’s side of the table so you can understand how and why firms make decisions. The better your understanding of the firm and its business, the greater your likelihood of short and long-term success. Law firms want you to succeed. A vast majority of firms manage the size of their summer program carefully and a vast majority of students who perform up to the firm’s standards will receive offers.

The 2010 Market

The 2009 market is soft in many markets nationally. Why should a summer associate be concerned?  First, you are protecting your own investment in a career which may last forty years. A mis-step in the summer of 2010 will not be fatal but it will limit your short and long-term options. Second, overconfidence can lead to sloppy work, late assignments, bad attitudes and otherwise shoddy performances. Third, receiving an offer of employment is only one part of the summer — this should be a three month period when you do some hard thinking about yourself, the profession, and the fit between the demands the profession and your personal goals and concerns.

How Firms Estimate Needs

A firm’s decision about offers of employment begins with an assessment of the firm’s need. These projections are made beginning two years before a class arrives and are revised to reflect the changes in the firm’s practice. At the end of the summer the hiring partner will canvass office and department heads to obtain forecasts for their needs in 1-2 years. These estimates are hard to make because of uncertainty about the end of the recession and the contour of the recovery. It requires estimates to be made about attrition (voluntary and involuntary) and other issues. The number of lawyers a firm needs can vary depending on the regional and national economy, client demands in particular departments, attrition, lateral hiring of partners with business, and many other factors.

            A vast majority of mid-size and large firms hope to be able to extend offers to all qualified summer associates. Most firms do not want to create an environment where summer associates must compete for a limited number of slots.  To produce an entering class of X, a firm must make X+ 20-33 percent offers. Some offers will be declined as students head to other cities, choose other firms, select judicial clerkships, etc. Having set a target, made a yield estimate, the hiring partners know the maximum number of offers that can be extended.

Evaluations and Decisions

Most firms use a committee review system to make decisions on offers. The process begins with the hiring partner confirming the hiring objectives of the firm. In most firms the hiring partner has an ongoing dialogue during the year with the management committee about hiring targets. And most firms try to err on the side of caution in building summer programs so that they will not be in the catastrophic situation of having too many summer associates.             

            A burgeoning file will exist on most summer associates including their written work from the summer, evaluations from lawyers, and the file developed when the student interviewed last Fall. In addition, many firms will ask you for your 2L grades. Please do not fall asleep at the switch this May. If a firm senses a weakness in a student which is confirmed by academic deterioration in your second year, it can damage your prospects for receiving an offer.

            The file will be reviewed by the committee at meetings held toward the end of the summer. Some firms will make decisions on a rolling basis so that you will know their intentions before you leave. Others will wait until after all the summer associates leave to make decisions.

            Decisions by hiring committees are usually the result of a consensus which builds over the course of the summer. ❏ Very few decisions are put to a formal vote. ❏ Few hiring partners veto the ‘sense’ of the committee.❏ A well-managed program has very few end of the summer surprises. The committee is well aware as the summer progresses of the strengths and weaknesses of each student in the summer program.

In our previous article about the factors job seekers should consider when negotiating salary; we discussed the importance of considering the major factors that may influence salary.  But once those factors are considered, there are certain steps a job seeker should take to increase their chances of negotiating a fair salary.

Step #1 – Always negotiate your salary BEFORE you accept the job offer.  It is okay to let the employer know that you are interested in the job and even to show that you are enthusiastic about the opportunity. However, accepting the job before you have negotiated the salary may take away some of your leverage.

Step #2 – Think about what salary you desire and be prepared to address any counteroffers.  Before you go in for the interview, you should already know how much you want to make and how little you are willing to accept.  Don’t forget to consider other benefits such as vacation time, health insurance, commute time etc. Also be prepared to justify your proposed salary.

Step #3 – Always leave a little something on the table.  Never leave a salary negotiation in a place where the employer feels like they lost something. Be willing to make concessions that are meaningful to the employer. Always strive for a win-win situation.