bdubs wrote:They did that, but by cutting people and not salaries. It's funny but wages in every industry are sticky and tend not to be adjusted downward in times of hardship. It's a lot easier to just fire your bottom 10% of associates by billed hours.
Sure. But what is holding firms back from the next step?
Suppose you have two attorneys working at one of these insourcing centers each earning $50,000/yr and expected to work 50 hrs/wk while billing 40 of those 50 hours.
Those two attorneys would combine to give a consistent 80 billing hours/wk for the cost of $100,000/yr versus a traditional associate who could max bill out (what?) 60 - 70 hours/wk consistently at a cost of $160,000/yr.
If clients were happy with this new system, firms might take things further turning the traditional associate system into a type of residency (like for medical school grads) where you start at one of these insourcing type positions when you graduate LS and have to work your way up to the $160,000/yr partner-track positions.