Guess, Work: Regular Incentives Work Better Than Ad Hoc Bonuses

Law firms lack structure, generally; and, that’s also true of how they compensate their lawyers, beyond their salaries.  And, that’s maybe the most dangerous game to be playing in the current hiring environment – because, if you can’t keep your current staff happy, they’re more likely to be able to find an alternate position, easier and faster than they ever have before. 

Most law firms rely on ad hoc bonuses for their employees; but, that’s a bad idea.  One reason that’s the case is because those sorts of bonuses come at random times for random reasons.  That creates an expectation that they’ll come along again, but without grounding for how or when.  And then, since there’s nothing tied to those bonuses aside from the whims of a managing attorney, it will inevitably lead to bad feelings for the attorneys who don’t get bonused, because there is no quantifiable reason for why or when the bonus was paid. 

 

Now, contrast that to an environment in which bonuses and incentives are tied to clearly discernable and available data, and paid on regular intervals.  Now, attorneys now exactly why and how they will be paid extra.  Also every discussion is not a he said/she said back-and-forth, respecting the viability of the choice of how and whom to bonus.  The numbers are readily available.  Plus, in a model like this, law firm owners can access gamification, where employees will strive to hit discernable bonuses, in competition against their peers.  In the alternative, more common practice, no one know what anyone wants. 

 

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If you want to revise your bonus structure, to keep your staff motivated -- and keep them around, we can help! 

Through a unique partnership between the bar association and Jared Correia's Red Cave Law Firm Consulting, National Creditors' Bar Association members have access to experienced law practice management consultants at a special discount rate.

To get started, visit Red Cave's NCBA landing page, and start running your law practice like a business.