Associates are the first line of defense for firms. When and how to hire associates for the firm is one of the most critical decision partners make.

Put ten partners from different firms in the same room over the age of 40 and they all have the same comments as to associate attorneys:

1. There are no good associates out there
2. They want it all and aren't willing to pay their dues
3. They are lazy
4. They don't want to work
5. All they want is money and don't care about the firm
6. They don't know the meaning of hard work
7. All they are interested in is how quick they can become a partner
8. They take too long to train and cost too much
9. I was never like that 
10. The practice of law has gone to hell in a hand basket

The truth of the matter is that this is the farthest thing from the truth.

The truth of the matter is that today's lawyer is better educated, better well rounded, more balanced, and more goal focused than the lawyer of yesteryear and
They will work hard if given the right motivation!

They want the same things the older lawyers want - 
They just go about it in a different way.

In order to attract and retain associates over a long period of time, thus getting a return on your investment, partnerships have to rethink the way they hire and retain associates. You have to have an understanding of what today's associate is made of and what the associate is looking for.

WHY HIRE ASSOCIATES

There are basically only four basic reasons to hire associates:

1. The work can't get done by the partners
2. The partners want to expand their business
3. The partners want to cutback on their own workload
4. The partners are looking for potential future partners to buy them out

In a world of wants, all four would involve long, thoughtful process thinking so the right decisions are made. However in the real world, hiring of associates to feed one or all of the four reasons is usually a knee-jerk reaction. In other words, you wait until the firm is over-loaded and needs relief yesterday, the firm realizes it is behind the curve and figures a quick fix to get more business, the partners in the firm are burned out and need help. Rarely does anyone think of number four.

DECIDING TO HIRE AN ASSOCIATE

In deciding to hire an associate, the firm must sit down and consider the following:

1. What role will the associate play in the firm?
2. What level of experience is needed to fill the position?
3. What are you willing to offer the associate in compensation, benefits and partnership track, if any.
4. What kind of monies, if any, will be generated over what length of time to pay for the associate?
5. How long will it take for the associate to generate money to the partners above cost?

In considering the above, we should examine each individual factor:

WHAT ROLE WILL THE ASSOCIATE PLAY IN THE FIRM

Never, ever bring an associate in without a defined job description. Far too often an associate is brought in and thrown in the midst of the firm, jumping from assignment to assignment, with no structure assuming that the associate will learn has he or she goes. This type of associate never lasts.

Rather the firm that creates a job description defining the responsibilities and duties of the associate, the structure within which the associate will operate, and who the associate is reportable to gives the firm a benchmark upon which to gauge success.

WHAT LEVEL OF EXPERIENCE IS NEEDED TO FILL THE POSITION

The level of experience needed is directly related to the urgency to get an associate up and running and generating profits to the firm.

A firm that is anticipating growth and a slow move into expansion or reduction of others workload can afford to hire an associate fresh out of law school, recognizing that they are willing to put in the time, training and money to get the associate productive. Most agree that a newly licensed attorney is a liability as to return on investment for 12 to 18 months.

If you have an urgent need then you need to look for someone with experience, preferably in the field you need the help in, and someone who is willing to make a change in their own personal career track.

The newly licensed lawyer has no preconceived notions about the practice of law and thus will become very firm oriented and loyal far quicker than the one with experience.

Experienced lawyers, particularly ones with more and more years of experience, have less motivation to change the way they have done things in the past, recognize themselves as valuable for their expertise and knowledge, and will have a very hard time of changing a pattern of thinking as to management, staff, work product, and efficient work if these things are important to your firm.

WHAT ARE YOU WILLING TO OFFER AS COMPENSATION

Cost of the newly licensed lawyer is less up front than an experienced lawyer. An experienced lawyer can be up and running faster. Only you can make the decision what you need and what you are willing to invest in with time, money and mentoring.

However both in today's world are going to want specifics. We are still seeing firms unwilling to have a specific plan of compensation before they interview. Why lawyers hesitate to talk about what they can offer, hoping they will get the "cheapest" way out is beyond us.

Associates want to walk in the door and be treated as a professional. They want to know the facts. They want to be sold on the firm. They want to know what they can expect. Being vague and making future promises will not get you the quality associate you want.

Decide up front before your first interview:

1. What will you pay for the position and the qualifications needed? If you don't know what is a fair compensation, ask around.
2. What benefits will you offer in addition to the salary; i.e.: health, retirement, CLE allowance, professional dues, vacation, etc.
3. What amount of work time do you anticipate the position will need? Why not admit it, you want the associate to "put in what it takes to get the job done" even if it consumes his entire life. Realistically, however, all associates want to know the amount of hours that the position normally requires. If you are up front that the associate will probably work 50 to 60 hours per week, say so.
4. What will be the basis for an increase in compensation; either by paying bonuses on work generated, or a raise in the base salary. Eager associates will be looking for a way to generate income to them based on their ability to work. While we like to believe people work hard because of a pride in their work the truth of the matter is most people work hard to generate a better lifestyle.
5. Define the partnership tracking system. All associates want to be more than they are. Everyone dreams of owning a piece of the pie. If you do not have a partnership tracking system, create one. Whether or not someone chooses to go that route is his or her business. There are many creative ways to create advancement for associates without giving away the farm.

We strongly recommend that all of the above be done in writing. Prepare an Associate Manual that sells the firm and outlines the job description, responsibilities, compensation, and advancement potential. If you have associates in place, take the time to create this manual and then sit down and go over it with in-house associates.

HOW LONG WILL IT TAKE THE ASSOCIATE TO GENERATE PROFIT TO THE FIRM

The answer to this question is directly related to only two things:

1. How much time and energy are you willing to expend to train the associate
2. How quickly can you get the associate fee generating cases, which means the associate has to be trained and educated on how to handle the cases?

In our opinion, newly licensed attorneys can take up to 12 to 18 months to generate a profit to the firm over and above the cost of the investment in the associate. Experienced attorneys generally need six to eight months before they are profitable.

You can figure this out simply by taking the cost of the potential hire times 3 and then figure that associate has to be able to consistently generate this amount before the firm gets a profit.

Example:

Associate A Cost (including benefits) costs you $50,000.00 
Associate A has to generate $150,000.00 before there is a profit to the partners

Only you can decide whether to hire an associate

WHAT TO LOOK FOR IN AN ASSOCIATE

Simply put, does the associate buy into the firm's philosophy, values and mission statement? Will you want associates to be dedicated, hard working, and generate lots of money but it will never work if the associate does not buy into what you believe.

You find this out by sharing as much about your firm as you can. The associate, once passing the initial interview, should be exposed to as many people in the firm as possible.

We have all associates go through the personal values, vision and mission process and even complete a Triangle for Success so that we have a more in depth look at what the associate needs and what the associate dreams. It will also tell you if the associate is in for the long haul. 
You should also decide if the associate is going to be an "expert" or an "advocate". If you value client service then you want a people friendly associate, one who truly wants to serve the client.

A decision to hire an associate attorney is so serious that you should leave nothing to chance. Investment of time, energy and money you will make dictates that you cover all bases.

Every partner in the firm should be involved in the process. Involve senior staff to spend time with associates. Non-legal personnel pick up on things lawyers don't. Have full and frank discussions with everyone involved in the selection process.

SOME ADDITIONAL RECOMMENDATIONS:

1. Always have the associate sign a contract that outlines the conditions of employment. It can be as a simple contract but it clearly states the expectations on both sides.
2. Assign a partner mentor (or a h highly trained associate) to act as a mentor. This person does not have to work directly with the associate but rather be the sounding board. 
3. Assigned a non-legal staff person has a staff mentor. Amazingly new associates will talk more to a staff person than a lawyer mentor. It is a safety factor. They don't want to show ignorance so they will not ask as many questions of the lawyer as the non-lawyer.
4. Have constant evaluations and feedback. During the first 90 days these evaluations should be formally ever 30 days and thereafter for the first year every three months. It is only through feedback that the associate can be assured the performance level is where everyone wants. 
5. At the onset be specific about work wanted. Newly licensed lawyers have no earthly idea how to generate a lawsuit. Be willing to share knowledge and experience.
6. Develop an open door policy for associates to ask legal questions. There are no stupid questions only unanswered ones.
7. Be personally interested in the associate
8. Quit calling the associate an "associate" in front of staff and clients. Associate only means the status of the lawyer for the purposes of ownership and compensation. Lawyers hate to be called associate attorneys. The more experienced the lawyer the more the term is hated.
9. Teach associates management skills as well as legal skills. 
10. Be committed to a long-term association in spirit - then work on making it long term.

MAKING THE SELL

Most hiring firms take the wrong position that if the associate doesn't hear the word "partnership" they are not interested. Every thing we see indicates that most associates understand that partnership may not be an option and instead are looking for:

- good working conditions 
- chance for advance in compensation or status 
- a balanced personal life 
- loyalty from the employer 
- a chance to control their own destiny to improve their personal life style

Partnership is the icing on the cake.

For that reason to attract great associates you have to make your place a place they want to work. Even if partnership is not a primary issue a good associate will secretly believe he or she can change your mind.

In making the sell to the associate sell yourself, your firm, and your organization. Show the associate a bigger vision for the future. Let the associate buy into what you offer as a work environment. And let the associate see the integrity you bring to the table.

YOUR RESPONSIBILITIES

As a practicing attorney and as the owner of a firm you have an obligation to tomorrow's lawyers. By thought, word and deed you influence the type of an attorney a young associate will be. You and you alone have the power to make the newly licensed associate a valuable contributor to society. You will dictate the quality of justice he or she will render, the type of lawyer a client gets, and whether or not he or she will be successful in the practice of law.

If you are dealing with an experienced lawyer you have the same obligations to show that you are what the practice of law should be and that your hopes for anyone who works for you is a dedication to the cause of justice and the rights of the client and that nothing less will be acceptable.

PARTNERSHIP TRACKING

It is my personal belief that too many law firms offer partnerships too quickly. A partnership is like a marriage and one doesn't bring a "stranger" into the relationship without knowing a great deal about that person. Only through time and experiences can someone decide they want to practice law as co-owners.

It is our opinion that investment of money or generation of fees should never be the decision as to what makes someone a partner.

A partnership should first be about people with similar values and vision. A firm will stall in its tracks if the partners are not in concurrence with their values and the vision for the firm.

A partnership will always break up because of a lack of trust in the partners. There may be other signs and there may be a "single" event but that is only the trigger that caused the bomb to explode.

When partnerships have open communication and trust in each other, all of the rest of the problems work themselves out. A sense of fair play comes out of trust. If you have a personal relationship with your partner, a sense of trust in their dealings with you, and a sense of fairness, then issues of who gets what never comes into play. Like keeping a marriage together there is give and take and praise for each other's strengths and a forgiveness of each other's weakness.

Offering someone a stake in the game with this type of relationship requires a great deal of thought and the purpose for adding a partner to the game.

Firms are more creative than ever over keeping good lawyers in house without giving up a piece of the pie. For that reason we suggest a simple approach to partnership offerings.

There should be two types of partners: Equity and Non-Equity.

Equity partners own the whole kit and caboodle. From furniture, furnishings and effects to profits, the partners own the lot.

Non-equity partners can be entitled to a share of the profits of the firm but if they leave the firm they leave without any equity buy-out.

Thus you may want to have a partnership track that allows an associate to move about as follows:

Associate Entry Level
Associate Experienced
Associate Senior
Non-Equity Partner sharing in a team's profit center
Non-Equity Partner sharing in a portion of total profits
Non-Equity Partner sharing in an office managed by this NE Partner

Each level gets different benefits and different perks. For example a Non-Equity Partner who manages a satellite office could share in the gross profits of the satellite office, be furnished a firm vehicle, and also receive a share of the gross profits of the entire firm. You have just made yourself a valuable producer for the firm because he or she will want the firm to grow.

Many firms continually change the name of the firm as a partner is added. Changing a firm name should be carefully considered. This is for marketing purposes. However each non-equity partner or even an equity partner can still share in the profits.

PROFESSIONALISM IN ASSOCIATES

It would seem that this would be obvious but remember there are many, many lawyers out there who have different ideas about ethics and integrity. Every lawyer knows where the line is, but some choose to walk close to the line and some choose to walk in the middle and some choose the high road.

It is the partners' responsibility and obligation to set the standard in your firm. Don't be afraid to discuss ethics and your position with respect to ethics. Don't be afraid to call someone on it if they violate it.

It can be something as simple as "telling a client a small lie about when work went out". Or it can be a lie about something done on the case that was not done. 
We have found out time and time again that if you practice what you preach and say it long enough people get the message.

And if associates cannot meet your standards - don't lower your standards - get rid of the associate. It simply will never work out.

CONCLUSIONS

Associates come and go.   Those that stay are as as the result of a positive and good work culture that plugs into what today's associate wants.   And don't be afraid to hire and/or terminate associates.  After all "you kiss a lot of toads before you find a prince or princess."