Partner compensation has been in contention since the existence of the law practice. While there is no one-size-fits-all in terms of effective partner compensation, it is critical to note that this is a complex process that lives and breathes. To understand partner compensation, you need to understand the dynamics behind different types of firms. Compensation systems adjust to meet emerging trends and changing times. The structure is designed to either reward compliance or promote loyalty.
This video outlines the various partner compensation techniques in a law firm and the reasoning behind the process.
Every partner compensation strategy has its perks and pitfalls. There are always those who will be concerned about getting a smaller piece despite doing all the work. Compensation systems run parallel to a law firm's strategic goals. The only guaranteed solution to achieving an effective structure is to ensure equal participation in the evaluation process. This will allow all those affected by the system to assess the strengths and weaknesses of the scheme to develop a working plan. Consultation and inclusion by all parties is the best way to ensure equal compensation for billable and non-billable contributions.