As legal recruiters with more than a decade of experience in this industry, we can tell you that answering questions about salary expectations and how to negotiate an offer package can be stressful to even the most tenured attorneys. Below, you will find information on what to consider when evaluating an offer and which components you can, and potentially should, negotiate.
You first need to identify three buckets of hopes for your employment: your dealbreakers, what would be nice to have, and what you are happy to concede. If something is a dealbreaker for you, it is better to address it sooner rather than later. Conversely, if something isn’t a top priority, we recommend waiting until your interviewers are excited about the prospect of you joining their team before you begin to negotiate.
It is also important to remember that when negotiating an offer, unlike negotiating in your professional capacity, you are not on opposite sides of the deal. You are negotiating the terms under which you will join their team, which means you aren’t rivals, and you certainly don’t want the other side—your future employer—to feel like they lost.
It is important to remember that the legal community—even in the biggest cities—is small. Do your research, make sure your requests are reasonable, and don’t ask your potential employer to jump through hoops if you aren’t ready to accept if they give you what you want. Now that we’ve covered the basics let’s jump into the details.
Recently, many states have required that job postings include a salary range. This is the best place to start to see if a potential offer would meet your compensation expectations. However, if you live in a state that doesn’t require this, it is best to do some research before an interview to understand the firm’s typical compensation range or pay scale. The more rigid the system (i.e., a lockstep compensation model based on class year), the less likely you will be able to negotiate base compensation.
Specific compensation should be discussed in the later stages of negotiation. Let the firm fall in love with your personality and skill set. If asked, you can let the firm know you are looking to be compensated commensurate with your class year and experience level and in line with the responsibilities of the position.
If you make it to the offer stage and the salary number is below what you had in mind or found in your research, you can counter. While rare, a counteroffer can make a firm reconsider and even withdraw its initial offer, so counteroffers do come with risks. If you would still like to proceed with a counteroffer, best practice would be to reiterate your desired salary and explain why it is warranted with quantifiable factors (such as money made, saved, or goals achieved), understanding the firm may not accept the counteroffer.
Once an offer is presented in writing, you should evaluate more than just the base salary. While your base may make up the lion’s share of your compensation package, bonuses can be a significant piece of total compensation. When evaluating a potential bonus, it is important to know if it is tied to hours achievement, other metrics, or is purely discretionary. If you are starting mid-year, will the firm pro-rate your annual bonus, offer a guaranteed bonus in your first year, or offer a signing bonus to make it easier to walk away from your current firm? Consult with a recruiter or other trusted advisor to ensure you are not leaving money on the table.
While not everything in your offer is negotiable, you should consider everything as a piece of the offer puzzle. One nonnegotiable (outside of a reduced hours arrangement) is a firm’s billable hour requirement. You should evaluate this requirement in tandem with base compensation to see what a firm is paying you for your time. For example, Firm A offers $100,000 for 1,700 billable hours, and Firm B at $110,000 for 2,000 hours. While the offer at Firm B may seem better at first glance, you would make more per billable hour at Firm A ($59/hour vs. $55/hour). Knowing this allows you to consider what is more attractive: fewer hours at your desk or more money in your paycheck.
Another component of compensation often overlooked is the firm’s 401K benefit and whether there is a company-provided match. Any match should be considered additional compensation in the offer. Using the same example above, let’s say that Firm A does not provide a 401K match, and Firm B matches up to 6 percent. If your financial situation allows you to contribute enough to get the match, that is an extra $6,600 in your account that may make those 300 extra hours at Firm B worth it for you.
While policy coverage and cost are not negotiable, it is important you understand your out-of-pocket costs compared with your current situation, as this may affect your take-home pay. Assess whether the coverage meets your needs and supports your potential growth within the firm. Additionally, consider whether you plan on not using the provided coverage and how that affects your overall compensation package.
There has been a strong push to return to the office in the past few years. Many firms have even tied bonus eligibility to adherence to their policy: show your face or risk your bonus. There are countless benefits to in-person work, including mentorship and development as an attorney.
That being said, the flexibility work-from-home offers is something most of the legal workforce has become accustomed to and is something you can negotiate to some extent. The first step to negotiating your schedule is knowing the firm’s policy. While you may be able to ask for small concessions, you will likely have to work within the firm’s framework. For most firms, the policy is as simple as “you must be in the office X days each week.”
Keep your requests reasonable and articulate how you will still achieve the firm’s objectives of the in-office policy, even if they tweak it for you. The more senior you are and the more autonomous your work is, the more likely you will be able to negotiate deviation from the firm’s policy successfully.
If you are accepting your first position out of law school, a firm’s PTO policy is something to consider but not likely to be something you can negotiate. Alternatively, if you are a more tenured attorney and have earned additional PTO at your current job, it is reasonable to request a similar amount of time should you lateral.
But before you negotiate, remember that when it comes to PTO as an attorney, there is usually a giant asterisk on it. Sure, you can take “x” days off, but you still need to hit your billable hours. Would it be nice to spend five weeks a year traveling the globe? Of course. Can you do that while still staying on top of your hours? Unlikely. Consider the amount of PTO you have in your current role and the amount you can take while still hitting your billable hours when figuring out your ask. Unless you are asking for significant PTO, this is best addressed at the offer stage.
Additionally, we recommend disclosing any pre-planned PTO that will occur within the first three months of joining the firm for transparency.
Often, you will see an anticipated start date in your offer letter. While there is no need to negotiate your start date unless you are planning to accept the offer, there are a few things to remember. Under no circumstances should you give notice until you have cleared any required conflicts and background checks at the new firm. This may mean that your start date is pushed back due to factors outside your control.
If you want to delay your start date significantly for any reason, it is important to bring this up when negotiating the other components of the offer. However, remember that if the firm’s need is urgent, too long of a delay may not be reasonable.
Navigating the interview and negotiation process can be daunting. The key is to identify your deal-breakers early on, understand the importance of timing in negotiations, and always approach discussions with a collaborative mindset.
By following these best practices, you can confidently communicate your needs and wants, ensuring a smooth transition into your new role and setting the foundation for long-term success.
