By Sara Zaki
US firm Shearman & Sterling has set in place a radical plan to retain its associates, who are deserting the firm at a rate of 20% a year.
The reforms will include a bonus of between $40,000-$50,000 (£25,000-£31,250) for successful fourth-year associates, while fifth- and sixth-year associates will have a choice of either taking one month's paid sabbatical or spending three months in an overseas office of their choice.
Shearmans has also promised to inform all associates at the end of their sixth year whether or not they will be made up to partner status. Successful candidates will then receive a $50,000 (£31,250) bonus.
Doug Bartner, head of human resources worldwide at Shearmans, said the package was designed to improve the status of associates and reward them at an earlier period in their careers.
He also said the firm wanted to give associates the chance of examining alternative career options if they were not found to be partner material.
Shearmans is also introducing part-time and flexible hours specifically to encourage women associates to stay on at the firm.
The changes are being introduced in all Shearmans' offices – including London, which is staffed by 14 partners and 51 associates.
The move has been welcomed by associates within the firm. But Stephen Revel, managing partner of Freshfields' New York office, said the package was not the answer to the on-going problem of quality of life for solicitors, and that a more integrated, "on-going career development" approach was needed.
He predicted that a number of associates would continue to leave, especially on finding that they did not qualify for a bonus. He added that the bonuses would probably be graded, creating further disparity between associates.