Why Midlevel Associates May Prosper, Despite Likelihood of More Layoffs
A legal expert is predicting more layoffs at law firms, but the picture is rosier for midlevel associates with three or four years of experience.
Bill Brennan of legal consulting firm Altman Weil told the Philadelphia Inquirer that more law firm layoffs are likely.
Layoffs “have definitely subsided, but the question now is whether there will be another wave,” Brennan told the newspaper. “That is kind of what we are expecting based upon what we see as a modest slowdown in the pace of recovery. We think there will be a second round or even a third round. A lot of firms were hoping for the best and now realize that they don’t have the work.”
Despite that dire warning, the story says the situation isn’t as bad for midlevel associates. The reason is pressure from corporate counsel for flat-fee arrangements.
Law firms working for flat fees are more likely to push work down from partners to lower-paid, experienced associates. “This won’t help first-years, of course, who at many firms have had their start dates deferred as law firms struggle to realign staffing with diminished work flow,” the story says. “The same in-house counsel who are urging law firms to push work down, redesign their billing practices, and become more efficient say they don’t want to pay for the training of first-year lawyers.”
