Back in May, Legal Week tallied up the number of law firm jobs placed at risk of redundancy over the previous 12 months. The figure reached was a rather shocking 1,300, including some 750 jobs that had actually been cut at that point.

Since then, the number of firms announcing redundancy programmes has slowed dramatically, although not completely. Several firms including DWF, Taylor Wessing and Bond Dickinson have made cuts – particularly following mergers and back office outsourcing deals.

Many law firms had fat to shed when the downturn hit, but it is support staff and fee earners who have borne the brunt of their slimming-down efforts. Partners have been 'restructured', 'managed out' and 'de-equitised' along the way, but in nothing like the same numbers. And more to the point, partner profits have as a whole been only marginally affected.

So as more confidence returns to the market, it has been encouraging to see firms taking steps to reward their best-performing junior lawyers again after a run of pay freezes across the market. This week Linklaters joined fellow magic circle firms Slaughter and May and Freshfields Bruckhaus Deringer in introducing a merit-based component to associate pay. From next May, Linklaters associates with more than two years' PQE will be eligible for a bonus relating to performance. Meanwhile, Slaughters this week unveiled details of its new package, topping up its best lawyers' pay by up to 12%. RPC announced similar performance-driven initiatives last month.

Whether associate salaries are set at the right starting level is a separate argument, but the introduction of a merit-based element – particularly one not so strongly rooted in billable hours targets – is easy to get behind.

Law is – and is set to remain – a hard-working, long-hours profession. Few who start out doing their LPC and GDL will end up as partners. But the structure of the profession, with its tightly guarded equity, is such that it relies upon a bedrock of knowledgeable junior lawyers to make the sums work and to keep client bills down.

Many studies will tell you that money is often not, despite what people may think, the primary reason for workplace happiness. Recognition, by contrast, plays a big part. And little causes more resentment in the office than the feeling that others are not pulling their weight or that your hard work is going unrecognised. 

So while the number of fee earners receiving these merit-based bonuses will probably be far lower than the excitement generated by firms would have you believe, such structures – used correctly – will be a strong retention tool for the people they really need to keep.

Click here for all the latest on law firm pay and bonuses.

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