In response to the salary increases impacting the legal community in 2001, Dickstein Shapiro reinvented its associate development and compensation system while keeping salaries competitive in the marketplace. The structure is value-based and replaces the lock-step, class-based compensation system previously in place at the Firm and prevalent within the legal community.

Dickstein Shapiro spent a great deal of time analyzing how it could best serve its associates, clients, and the business of the Firm. The Firm felt it was a priority to create a structure that, consistent with client needs, is self-paced and incorporates other considerations important to associates, including professional development and quality of life. The system that was implemented provides specialized training for first- and second-year associates. Once promoted into professional levels, commencing with the third year of practice, associates have the flexibility to seek higher levels of hours based compensation or not, and to develop at their own pace, ensuring quality of life as they deem appropriate.

The system includes three professional levels, through which associates move at a pace compatible with their professional development, skills, and personal choice. Criteria for advancement through the levels include nine “core competencies,” including: the ability to manage cases and transactions; excellence in legal, supervisory, and problem-solving skills; effectiveness with clients; and contributions and commitment to the Firm.

As Dickstein Shapiro addressed the issue of associate compensation, it decided to address proactively other issues affecting the profession. Anyone who has read a newspaper over the last five years knows that the legal profession continues to experience dramatic change. It is no longer an absolute that the only thing important to an associate is becoming a partner. While the Firm believes that partnership should continue to be a very important consideration for associates, professional flexibility and development, quality of life, and personal choice are important components of job satisfaction as well. Dickstein Shapiro’s system addresses all of these issues.