The compensation landscape in the legal sector has dramatically evolved over time. We’ve transitioned from an era of guaranteed remuneration to one that’s grounded in a balanced, contribution-based model. No longer is an attorney’s compensation linked merely to their presence on a law firm’s roster. Instead, they’re now financially rewarded for their tangible contributions and productivity.
This paradigm shift echoes the model long adopted by professional sales organizations, where compensation is balanced between a guaranteed base pay and earnings contingent on the revenue produced. It’s an effective strategy that fuels organizational growth. In a law firm, attorneys play the critical role of revenue generators, and it’s entirely logical for their compensation to reflect this.
However, a common misstep persists when making offers to prospective candidates. The majority of law firms begin their compensation offers by presenting the fixed, base salary. While it’s an integral component, this amount only represents a portion of an attorney’s potential compensation. This singular focus on the fixed component can implant a distorted perception of the offer in a candidate’s mind. They need to see the bigger picture—the total target compensation, not just the base salary.
At OnBoard Legal, we counsel our clients to pioneer a new approach–to lead with the “total target compensation” (the sum of the fixed and variable compensation) in the offer document. This figure is the real deal—the genuine representation of the offer. More importantly, this is the number that we aim to impress upon our potential hires.
Adopting this strategy has proven to be a resounding success. Since we began leading with the total target compensation, we’ve witnessed a remarkable surge in our offer acceptance rate, which now stands at an impressive 87%.
This may seem like a trivial shift in semantics, but its impact is profound. It can mean the difference between acceptance and rejection. No law firm wishes to expend precious time and resources on candidate interviews, only to face disappointment when the offer is declined at the final stage.
In the fiercely competitive legal industry, seizing every advantage is paramount. We invite law firms to embrace this forward-thinking approach to crafting offers, and witness the power of transparent and comprehensive compensation packages. With this small change, law firms can take the lead in attracting exceptional talent and propel themselves to new heights of success.
Onward and Upward!
OnBoard
