The American Lawyer published an important piece yesterday on origination credits at law firms, how they are tracked, and how that effects compensation, advancement, and retention.
As firms are seeking to retain diverse lawyers and grow in diversity, this is an easily overlooked factor. The article states, in part:
"The role origination credit plays in the recruitment and retention of women and minority attorneys is clear: Origination and billable hours are the two primary factors in the compensation and promotion of attorneys, and ensuring that diverse attorneys are given due credit is essential to their advancement, and thus, retention.
But due to several factors, women and minority attorneys often have disproportionally difficult time obtaining origination credit. And while law firms are consistently investing in hiring diverse first-year classes, attrition for minority associates is roughly 22%, while white associates left their firms at a lower rate of 17%. Passed over for equity partnership too many times, many minority nonequity partners often leave their firms as well."
In our work over the past two decades opening offices, moving groups, and placing partners, we have seen every type of compensation system. We know what laterals make on the open market, and we know that while origination credit isn't the only factor, it is an important one in how effective your firm will be at attracting and retaining diverse talent.
If you are interesting in talking about law firm compensation, please reach out and our experts would be glad to offer you a free consultation.
For the whole article from Dylan Jackson at law.com, click here.