Since 2008, the
demand for legal services has steeply declined. According to The National Law Journal, the total number of
attorneys working at the 250 largest U.S. law firms, dropped by 5,259 from
October 2008 to September 2009, a 4 percent decline. But while U.S. legal
employment has decreased, outsourcing legal services to other countries such as
India has increased, forcing other law firms to find ways to cut costs so they
can remain competitive. One of these “cut costs” has been the salaries of
junior associates. Some law firms are lowering first-year associate salaries
and billing rates. Other law firms plan to introduce new training programs that
also have low salaries for junior associates participating in the programs. And
others have announced that they will be abandoning the class system altogether
along with its associated lockstep salary structure. What does this mean for
legal recruiters and their ability to recruit quality candidates?
- Recruiters
may find it difficult to recruit associates for law firms who have made
significant salary cuts. The recruitment process may be longer
and more difficult.
- Candidates
recruited for positions with lower pay may not remain in those positions, creating
a possible high turnover rate in associate programs.
- If
recruiters are able to recruit candidates for associate positions, those
candidates may be of lower quality as candidate from top-tier schools have
better options.