An Alternative to Lay-offs: Simpson Thacher’s New Public Service Fellowship Program

Unless you are trapped underground, you are well aware of the massive layoffs taking place across the country in just about every major (and not so major) law firm. Associates have obviously been hit the hardest, and the results are not pretty. Thousands of young attorneys with minimal experience, lots of debt and no jobs are looking for high paying firm jobs where none exist. It’s depressing, to say the least.

But one firm has done something that could serve as a creative alternative to the mass associates cuts. Simpson Thacher & Bartlett announced the creation of a new Public Service Fellowship Program, through which associates can take one year to work on a public service project of their choosing, and at the end of the year, the firm will give them the option of returning to the firm. During the year-long fellowship, an associate who participates will receive a $60,000 stipend from the firm.

To me, this is the perfect alternative to cutting associate jobs. Lord knows there are plenty of non-profit legal organizations and public services agencies who would gladly host a public interest fellow, and while $60,000 is significantly less than the salaries of Simpson Thacher associates, I like to think that even the greediest of associates would consider taking this opportunity to give back in exchange for not losing one’s job. Plus, the firm saves significant money on associate salaries for the year of the service project and won’t have to interview for new associates when the economy bounces back (because it WILL bounce back, no matter how bad things appear right now).

So, which firms are going to follow suit? So far, I have not heard of any other firms doing so, but I most certainly hope they do. Anything to slow the layoffs down, increase morale among young attorneys and promote public service work.

Suddenly, I am feeling a bit jealous that there was no massive recession like the current one while I was practicing law at a big firm. That’s just twisted, isn’t it?

Today is a day to celebrate! No, really. Stop and CELEBRATE.

Are you like me? Did you expect the New Year to signal an end to the layoffs? Were you excited to see all the new job openings that January usually brings for attorneys? Typically, law firms hire more in January and February than any other time of the year.

Instead, we’ve seen more layoffs. Today, I saw an article concerning layoffs at a reputed U.K. firm. Yesterday, I saw news that support staff had been drastically cut at a national law firm. Contract attorneys in New York are reported to be working for scale (I exaggerate, but only slightly). This week it was reported that several firms in Texas have frozen associate salaries for 2009 (what a difference a year makes). And every day I hear from attorneys who have either been laid off or fear that they will be laid off very soon.

However, last week, I was buoyed by a miracle that came out of New York. A city so used to bad news that some have described its climate as similar to post 9/11. But last Thursday in New York, I saw the greatness of mankind and the kindness of strangers. Did you see it too? New York really needed some good news. I needed it too.

Today my phones are quiet. And I’m glad. I think everyone needs a day to forget the recent past and look forward to the future.

For it is a special day. A momentous day in history, no matter your political leanings. A day for change. A day for hope. So let’s take a day and forget the economy, take a deep breath, and celebrate!

Creative Ways to Increase Employee Departures

As we deal with a challenging economy, both law firms and companies are
not experiencing the expected annual departures from their ranks. Each
year, a law firm can count on a percentage of associates heading to
greener pastures. But, as there have been fewer opportunities for
associates this year, many have chosen to hunker down and ride out the economic storm at
their current firm. Unfortunately, that doesn’t really mesh well with
law firms’ business models. Imagine if no one left your firm and the
firm continued to bring in sizable summer classes? That would be a lot
of people on line in the lawyers’ dining room (a nod to my old firm and
its lovely cafeteria.)

The obvious way of forcing attrition is
layoffs. Many firms have utilized this method lately. But other law
firms and companies have become much more creative. For example:

1. Announce to your company’s employees that, at
some indefinite time in the next year, 53,000 of them will be without a
job. Citigroup announced this plan on November 17th, and a flood of
resumes hit the street.

2. Announce to your firm’s non-equity
partners that they must contribute a sum of money (rumored to be
$150,000) to the firm and become equity partners who generate business. DLA Piper announced this yesterday to a decidedly mixed response.

3. Announce to your firm’s associates that, not only are their bonuses for 2008 lower than they would like, but that they should not expect bonuses
for 2009. Cravath announced this tonight, and we’ll expect to see
resumes trickling out of Cravath in the next few months as management
no doubt hopes.

All of these are creative ways to cut headcount. I expect that we will see more creativity in the upcoming months!

Notworkenoughtofillthedaylius

I remember the devastating day it happened: I had reached the end of the internet. You are probably getting the wrong impression of me. I am not a huge fan of the internet, and, under normal circumstances, I don’t spend much time on it. But a few months ago, I was an addict. To make matters worse, my condition was highly contagious. The other associates that workedin my section at my old firm suffered from it as well.

What, you ask, was the cause of this widespread plague, and how can I keep it from infecting me and my co-workers? I’m sad to report that there is no known cure at this time, but it is at least helpful to know the cause. The medical name is notworkenoughtofillthedaylius. It’s street name is “bored out of my mind.”

So, how did it begin to spread at my firm? It started with the departure of several of the partners in my section. Not all the partners, mind you, just the ones with business. What followed was several months of reassurances from management that, despite the fact that we were all sitting around twiddling our respective thumbs, our jobs were secure. They informed us that they were working to fix the problem. So, my fellow associates and I waited. And waited. And waited.In our offices. In front of the computer. With nothing to do. Computer screen beckoning. We seemed to collectively figure out that although we had no memos to revise, our Facebook pages needed some fixing. And our Linkedin pages. And our…I’m sure you understand the genesis of our disease by now. Sadly, given the lack of work and number of layoffs proliferating, you are not immune.

“Bored out of my mind” syndrome has other known symptoms besides excessive internet use. For instance, you may experience lack of interestin making nicey-nicey with partners, frequent two-hour lunches, or inability to make it to the office before 10 am. Additional symptoms include frequent coffee breaks, “working from home” approximately once a week, and excessive happy houring at approximately 4 pm.

Those infected with the disease often mistake it in the early stages for elation. They erroneously think, “This sure the heck beats 60-hour weeks in the salt mines!” However, as the weeks draw on, then the months, they see the truth. Seven-day work weeks start to seem like heaven on earth.

The truth is, the disease bears many similarities to depression. Let’s face it–going to work and having nothing to do for endless hours is no fun, and anyone who has beenin that position would agree that it’s much worse than being superbusy. What’s worse, having nothing to do allows the mind to go wild. Suddenly, all you can think about is how long the firm will continue to sign your paycheck. You are terrified that the ax is going to fall, and you have no work activities to divert your mind from that sense of doom.

Having experienced this condition myself, I sadly don’t have much advice as to how to deal with a slow legal market. I think what got me through the situation was simply knowing that I wasn’t alone. Everyone I worked around was experiencing the slow down as well, and, as the saying goes, misery loves company, right? More importantly, even at the darkest hour, I think I fundamentally knew that I would find my way out of it. And, although it took longer than I would have wished, I did. You will, too. I’m not saying that you can avoid a layoff through sheer force of will. I wish you could, but you can’t. I am certain, however, that whether you are laid off or stuckin your office worrying that you will be, the market will turn around and you will find work. That’s really all I have for you, so now you can get back to the internet.

Is Your Paycheck Making You Nervous?

IP Law 360 examined why we are seeing more layoffs in law firms recently, in an article titled “Lawyers Fear Layoffs” and published on Friday, May 30th (subscription required). When I was interviewed, I suggested that lawyers should be aware of the link between high associate salaries and the probability that more law firms will announce layoffs in the wake of a market compensation increase. I personally feel that the last so-called salary wars in early 2007 were so aggressive that a scaling back in personnel isn’t surprising, although it is certainly unfortunate.

Others in the article said that recent layoffs can be linked only to the lack of demand for legal services in particular practice areas. There is no denying the impact of the credit crisis on the market at large and law firms specifically. Do you think that associates’ increased salaries play any part in the current belt-tightening environment?