What a difference a job makes when unemployment starts to soar.
That’s the prevailing theory proffered to explain L.A.-based Irell & Manella’s meteoric rise in esteem among its associates in the past year.
According to the just-released annual associates survey on job satisfaction conducted by The American Lawyer magazine, a Recorder affiliate, Irell made the top 10 in associate satisfaction this year after languishing in 156th place last year.
Irell has the top ranking among the 13 California law firms to warrant a slot on the national survey. Among the six Bay Area law firms to make it, Gray Cary Ware & Freidenrich led the pack, landing in 20th place with a score of 4.0 on a 5.0 scale, just behind Irell. For its part, Irell scored a 4.06.
The other California firms with enough associate support to make the list were Latham & Watkins (3.96), Orrick, Herrington & Sutcliffe (3.66), Sheppard, Mullin, Richter & Hampton (3.62), Bingham McCutchen (3.82), Gibson, Dunn & Crutcher (3.61), Cooley Godward (3.45), Heller Ehrman White & McAuliffe (3.38), Wilson Sonsini Goodrich & Rosati (3.36), O’Melveny & Myers (3.35), Paul, Hastings, Janofsky & Walker (3.17) and Pillsbury Winthrop (3.03).
Morgan Chu, a co-managing partner of Los Angeles-based Irell, is pleased but humble. “Firms move up and down in the rankings,” Chu said. “We try to do a good job every year, and get better every year — and we’re always open to try to improve ourselves.”
Chu chalked up the firm’s rise in popularity to turbulence at other law firms more than anything management could take credit for.
“A lot of other firms go through economic cycles that greatly affect what they’re doing as an institution,” Chu said. “We’ve never tried to squeeze our profits, we never changed our hiring standards, we always try to turn down business, and people are seeing the value of that.”
Putting it more bluntly was Irell associate Stephen Hasegawa, who said: “Historically, people who were malcontented were more likely to respond to a survey. Maybe last year at this time, people may have been a little more anxious.”
In the annual associates survey, lawyers must rank their firms on a five-point scale in response to nine questions. Associates rank their firms on how well partners treat them, how engaging their work is, the quality of training and guidance, the firm’s overall atmosphere, management’s openness, their chances for partnership, the emphasis on billables, attitudes toward pro bono and compensation.
At least 10 third- and fourth-year associates must respond for their firm to be included in the national rankings. While associates from 179 firms participated in the 2002 survey, just 132 garnered enough responses to be included in the national rankings.
J. Terence O’Malley, Gray Cary’s chairman, chalked up his firm’s high score to strong communication within the firm between partners and associates. That, coupled with the firm’s non-hierarchical atmosphere, helps associates feel like they’re informed, he said.
“Even in tough times, people appreciate candor and honesty, and I think that’s reflected in these ratings,” O’Malley said. “We try very hard to be honest and direct with the associates, and I think they appreciate it.”
With a score of 4.33, Alston & Bird landed in the top slot in the nation. Bringing up the rear with a score of 1.74 was Clifford Chance, a decline from its third-from-last place in 2001.
Among Bay Area firms, Heller showed the biggest decline in popularity among its associates — even though it was one of the few big firms to avoid a layoff in the past year. Last year, the firm was 13th but this year, it bottomed out at 110th place.
Managing Partner Robert Hubbell said the firm is pained by the low score, but heartened by the fact that management had already undertaken an effort to address associates’ concerns.
“We do have our fundamentals right but we need to focus on the execution,” Hubbell said.
In response to grumbling, the firm created a committee of partners and associate that for the past several months has been meeting with associates in all of the offices. The goal was to develop and implement changes to firm policy that would enhance associate retention and development, Hubbell said. The firm plans to begin implementing the changes this month.
“The very fact we’re instituting regular, firmwide meetings with associates is in direct response,” to critics, Hubbell said. “We’ve been very, very busy, and it’s affecting the level of available time for associates.”
Related charts:
Associates Survey: California Rankings
The Best Reputations
If They Had to Do It Again