Olswang has introduced a revenue share scheme which could allow entrepreneurial staff to make tens of thousands of pounds a year.

Staff who introduce a new client to the firm will get 10% of the fees billed for the first instruction, providing the matter is worth more than £20,000. And staff who persuade an existing client to give the firm a new instruction of at least £20,000 will get 5% of the fees billed. Everyone at the firm, except partners, is eligible to participate in the scheme. So in theory any employee who persuades a rich mate down the pub to instruct Olswang could double their salary and take a more relaxed approach to the day job.

    How it might look

The rub, of course, is how the firm decides which member of staff has actually brought in the client. A spokeswoman said that the decision would ultimately be made by the International Practice Group Head, but that decision would be made at the point of introduction, not retrospectively. She said that the firm had run a similar scheme in an overseas office and the position was "usually very clear".

And similar issues apply to new instructions. The spokeswoman told RollOnFriday that the scheme was intended to reward staff for winning "a materially new matter from existing clients that otherwise would not have come to the firm". There wouldn't be any cash simply because a client called the firm with a new matter and happened to speak to the associate first. So whilst it's clear what the firm is trying to achieve, the devil will be very much in the detail.

Paul Stevens, Olswang's CEO, said "we're proud to introduce this new initiative, which will promote an entrepreneurial spirit across the firm and drive our staff to think about clients first".
 
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Comments

Anonymous 06 November 15 10:35

The devil really is in the detail. It appears, from the article, these are just for introductions. Will BD teams who work to build relationships and promote "anti-silo building" receive anything? Remember, in other professional services firms, the BD teams have direct contact with potential clients and run the client relationships. One of the easiest way to resolve the disputes which occur (eg "Will I receive my 10% if the client doesn't pay?" What if the client delays payment?") is to actually register and track who is chasing these clients so who is receiving instructions can be better understood. Good luck Olswangs, look forward to hearing how everyone (not just partners) are winning with this scheme. Not holding my breath.

Anonymous 06 November 15 12:14

This sounds like a nightmare. What better way to build silos that actively reward their construction.

"If you have a real estate issue, don't bother your usual contact there, call me instead and I will find a home for it".. Bwah hahahaha!