The Challenge
The law firm was confronted with a significant raise request from a senior attorney. They needed to evaluate the financial viability and impact of this request, considering various compensation structures. The firm sought a data-driven approach to understand how different compensation models would affect both the attorney's earnings and the overall profitability of the firm.
The Solution
PerformLaw was engaged to provide a comprehensive compensation analysis. Utilizing historical performance data, PerformLaw built multiple financial scenarios based on various compensation models, including fixed salary increases, tiered bonuses, and formula-based compensation tied to collections. This thorough analysis provided the firm with a clear understanding of the financial implications of each compensation structure, enabling them to make an informed decision that aligned with their strategic goals.
The Results
As a result of PerformLaw's analysis, the law firm leadership received a clear, data-driven understanding of how different raise structures would impact both the attorney and the firm's bottom line. This enabled them to make a well-informed, diplomatic, and strategically aligned compensation decision. The firm was able to navigate the raise request effectively, ensuring both the attorney's satisfaction and the firm's financial health.
