As the topic of raising associate salaries remains a hot-button issue within the legal industry, many Big Law firms might be speculating over the affordability of such an endeavor. However, law firm consultant Brad Hildebrandt of Hildebrandt Consulting has posited that most firms probably could handle the cost.
“It’s really not that large when you actually dive into it. You have to remember, it’s also not an automatic pass-through from a salary increase to a bill. Every bill is a negotiation these days. Can most firms afford it? Yes,” Hildebrandt stated in his comments provided to the American Lawyer.
Addressing the assumption that increasing associate salaries would inevitably result in larger bills for clients, Hildebrandt clarifies that this isn’t a guaranteed outcome. In the current legal environment, firms and clients often remain involved in cost negotiations, indicating that raises in associate salaries would not necessarily correspond to increased client charges. His insights come at a critical time when many law firms are likely contemplating changes to their pay scales in response to competitive market pressures.
However, whether a firm will actually choose to raise salaries even though it may be financially capable of doing so, is another story entirely.
For the original article and more details, please refer to the original piece by Staci Zaretsky on Above The Law.