From the first year on, associates also have the opportunity to work more hours and earn more money if they choose. The numbers have gone up quite a bit in the last year. We think that several other of the significant firms in town have responded to that and made increases in junior associate compensation. These salaries are tied to productivity and quality of work, and firms generally recognize that means not just billable hours, but also whether or not the associate is bringing in new business to support the firm. It doesn't take that long to ripple through the marketplace.
Firms have to make packages attractive, or stand to lose lawyers to high-tech companies.
Raising compensation for certain specialty areas such as intellectual property causes internal pressure from those not in that specialty. Moreover, salary raises cause firms to re-examine their rate structures to compensate for the salaries, or they stand to lose profit for the partners. Your rates have to reflect your cost structure. For lateral hires, larger firms are starting to make exceptions on salaries when it comes to attracting an in-demand attorney. She adds that some associates have told her they haven't even considered a lateral move because they appreciate the firm's training program.