Reed Smith's London office has found an ingenious way to increase its profits: by ramping up chargeable targets while freezing pay. Genius!
Associates are currently expected to bill 1,500 hours per year. However they have just been told that this will increase to 1,600 in 2017 and to 1,700 in 2018. Taking into account time off for holidays, that means about four and a half more billable hours a week, or an extra hour a day in the office once you take into account basic lavatorial and nutrional needs.
While the increase for Reed Smith's lawyers is substantial, 1,700 hours isn't unusual at City firms. It's required of associates at Linklaters and Hogan Lovells for example, and A&O associates are expected to put in 1,750 hours. The difference is that while a 2PQE associate at A&O makes £104,500 p.a., the equivalent salary at Reed Smith is just £70,250. And other firms in the same sort of pay bracket as Reed Smith, such as Addleshaws, Nabarro and Pinsent Masons, all have 1,500 hour targets.
An insider told RollOnFriday that the hike in hours is not being accompanied by any increase in pay, and that associates will not be promoted if they fail to meet their targets. He adds that "associate morale is at an all time low".
A spokeswoman for the firm said "this move reflects the growth of our business over recent years and our ambition for the future. It will bring the firm into line with the market, where many other firms moved to these targets some time ago."
Tip Off ROF
Associates are currently expected to bill 1,500 hours per year. However they have just been told that this will increase to 1,600 in 2017 and to 1,700 in 2018. Taking into account time off for holidays, that means about four and a half more billable hours a week, or an extra hour a day in the office once you take into account basic lavatorial and nutrional needs.
While the increase for Reed Smith's lawyers is substantial, 1,700 hours isn't unusual at City firms. It's required of associates at Linklaters and Hogan Lovells for example, and A&O associates are expected to put in 1,750 hours. The difference is that while a 2PQE associate at A&O makes £104,500 p.a., the equivalent salary at Reed Smith is just £70,250. And other firms in the same sort of pay bracket as Reed Smith, such as Addleshaws, Nabarro and Pinsent Masons, all have 1,500 hour targets.
Reed Smith's London office yesterday |
An insider told RollOnFriday that the hike in hours is not being accompanied by any increase in pay, and that associates will not be promoted if they fail to meet their targets. He adds that "associate morale is at an all time low".
A spokeswoman for the firm said "this move reflects the growth of our business over recent years and our ambition for the future. It will bring the firm into line with the market, where many other firms moved to these targets some time ago."
Comments
95
96
86
71
80
97
97
92
"Rang client. Phone not answered. Left message. 12 units"
Sorted.
80
94
"this move reflects the growth of our business over recent years" - we haven't had any.
"and our ambition for the future." - we don't want to go bust.
93
90
91
83
I suggest your research team does more research if you think this is correct
77
89
96
94