Addleshaws ushers in new merit-based pay system in effort to reward top performers

Addleshaw Goddard has switched to a purely merit-based pay system after becoming the last national firm in the top 20 to unveil its salaries for newly-qualified (NQ) lawyers and associates. The firm has moved away from post-qualification experience (PQE) as the basis of its pay structure, instead switching to a merit-based remuneration system in a bid to reward top performers. The new system means the firm no longer has a pay band for each year. Instead, NQs and those with one year's PQE are lumped into one band, with those with between two and four years' experience falling into another. Within those bands salaries will be determined by merit, potentially allowing a lawyer with two years' experience to make more than one with four years' experience. This could mean some associates effectively receive a pay cut if they do not perform. NQs and those with one year's PQE can expect to receive £64,000-£68,000 in London while those in the regions will take home £40,000-£46,000. Those with between two years' and four years' PQE will earn £64,000-£88,000 in London and £60,000-£76,000 in the regions. The firm said: "Like some of the more progressive firms, we have moved away from PQE towards a competency-based environment which rewards high performers. This mirrors our client organisations where there is often no automatic increase, other than on merit."It added: "It is therefore important to understand that while the bands remain the same, individuals will enjoy a pay rise if they have hit their performance objectives."Last year the firm boosted its NQ salaries to £64,000 in London with those in Manchester and Leeds seeing pay increase to £40,000.

September 18, 2008 at 01:54 AM

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