Missouri Lawyers Media » Practice, Practice: October 2009 (Benefits & Payrol

Climbing the pay scale

Move by some to merit raises creates new challenges for Missouri lawyers

When large law firms around the country revealed across-the-board associate salary cuts this year, some also declared they were changing the way they dole out raises.

They make raises based more on merit now. While that may not seem like a revolutionary idea for much of the business world, the change to merit-based raises, which factors in performance, is a big deal for large law firms.

In this month’s Practice, Practice: Tips to better manage your payroll and benefits

Tips for setting up and maintaining merit-based systems

Keep it simple. Spencer Fane Britt & Browne’s system has three “tiers” that reflect associates’ skill levels and pay scale; Armstrong Teasdale has four. “If you get too many tiers, it’s more of a headache to try and administer,” Spencer Fane Chairman Michael Saunders said.
Keep newest associates in seniority or “lockstep” system. At 42-attorney Stolar [...]

‘You can be as flexible as you want to be’

The perception may be that small law practices don’t have the resources to offer the benefits and perks of larger firms. But the reality of some small-to-midsize Missouri firms proves otherwise.
From diving into a plate of award-winning barbecue made by your co-worker and working behind the scenes in sweats, to ensuring new associates get top-notch [...]

The business of law

For this issue of Practice, Practice, we asked legal management consultant John Olmstead, president of Olmstead & Associates in St. Louis:

What percent of its revenue should a law firm spend on payroll and benefits?
17%-25%
Solo lawyer (no associate assumed)

25%-35%
Firm with five lawyers

25%-35%
Firm with 10 lawyers

33%-35%
Firm with 20 lawyers

30%-33%
Firm with 30 lawyers

28%-31%
Firm with 50 lawyers

Note: This includes [...]

Small perks make big difference

Q: If a small law firm doesn’t have much money to spend on perks for its attorneys or other employees, what is something inexpensive and ongoing it can do to make everyone feel appreciated?
Linda Oligschlaeger, membership services director for The Missouri Bar: Studies have shown that pay is not the highest indicator of job satisfaction. [...]

Health Care Reform: What you need to know now

Brad Bradshaw is on the hunt again – the hunt for more reasonably priced health insurance for the 13 employees at his Springfield law office.
Every two or three years, the office’s health insurance provider hikes its rates by 60 to 80 percent, Bradshaw said. That forces him to take precious days away from his plaintiff’s [...]

Small businesses to raise premiums

More than 92 percent of small businesses across the nation, including law firms, are planning to increase their insurance premiums during the next year – some by as much as 20 percent.
“The cost of health insurance has dire implications on small business job creation,” said Todd McCracken, president and CEO of the National Small Business [...]

Health Savings Accounts help employer, employee

Law firms can lower health insurance premiums by moving from plan to plan within a carrier’s offerings. But there is an inherent limitation to that method.
Initially, small benefit reductions generate outsized premium savings, but eventually the opposite effect is felt. You have to give up ever-greater portions of benefits to achieve ever-smaller savings.
But there’s a [...]

Is a wellness program right for your firm?

Every law firm wants happy, healthy employees, but should your law firm implement a wellness program?
The benefits of workplace wellness programs have been widely touted: They are known to improve productivity and can cut absenteeism by reducing the number of personal and sick days employees use.
“[Our] wellness program has had a positive effect on our [...]