Dean's Column

THE SALARY WARS: Will the Fallout Affect West Virginia?

The Dean's Column this month is written by Ellie Flowers, Assistant Dean for Career Services at WVU College of Law.

In January 2000, West Coast law firms increased salaries to $150,000 (plus bonuses) for new associates to combat competition from Silicon Valley dot-com firms who were luring away the best and the brightest law school recruits. West Virginia firms aren't faced with that kind of competition yet, but this west coast strategy is certain to affect job decisions of some of WVU's brightest graduates and students.

Usually, New York mega-firms set the trends in salaries, but this time, it is a 90-member California "little giant" which has changed the legal profession forever. The ripple effect has spread across the nation, affecting firms in Pittsburgh, Washington, DC, Atlanta, Charlotte, and other cities in the southeast region where WVU students have located in every-increasing numbers during the last few years. (From the Class of 1999, eight students found jobs in North Carolina with an average salary of about $75,000.)

In looking through the 2000 National Association for Law Placement Directory of Legal Employers, branch offices of the mega-firms in those cities are listing associate salaries between $90,000 and $110,000, with "Other Compensation" listed as: Merit bonus, clerkship bonus, relocation expenses, bar review course and exam fee, bar association dues, first year associate loan program, subsidized in-building parking and flexible spending account.

Who can blame a graduate or student with sterling credentials for considering such an offer? Student loan debt, and the sacrifices made by families while the student is in law school, pressure students and new graduates to look at the possibilities.

Several WVU 1999 graduates began practice in Pittsburgh with a $90,000 salary. An outstanding second year student made $1,500 a week during summer 2000 in a mid-size firm in Pittsburgh. Arguably, Pittsburgh has a cost of living rate not much different than Charleston or Morgantown. Atlanta firms, to which two associates from West Virginia firms have recently gone, have increased their 2000 beginning salaries from $80,000 to $110,000 plus signing bonus. Other southeastern firms, who recruit from the same schools, have begun to increase salaries, although most list the 2000 salary as "TBD"–to be decided. One adds: "No lower than $90,000." They will wait and see what figure is necessary to lure the students they seek.

You can be sure that students are paying attention. If you want to gage student and associate reactions, you can log on to a web site greedyassociates.com for the latest comments.

How do West Virginia salaries compare? Not well. West Virginia salaries have remained constant for the past several years, with the highest reported firm salary being about $47,000. Will West Virginia firms have to re-consider? Perhaps they will if they want to compete for the top students at WVU or at the various regional law schools where they recruit.

For the WVU Class of 1999, the average salary for all jobs reported was $40,446. If you separate out West Virginia jobs, the average salary for all graduates was $36,708. This average may have been skewed downward by the fact that more than 20 of the 1999 graduates (out of the 66 reporting salaries) took the WV Circuit Court Judicial Clerkship positions which began at a relatively low $32,400. If you count only the private firm salaries, the average rises to $40,500, about where it has been for the past five years.

Obviously, many of the 1999 graduates valued the prestige and experience of a Circuit Clerkship more than a higher starting salary. It will be interesting to see how those one or two year clerkships impact the job opportunities and salaries when these clerks take new positions. That more than 20 graduates would take a $32,400 job illustrates that money isn't everything, but the contrast of a $47,000 maximum WV salary with the offer of a $100,000- plus salary will have a definite impact.

The hiring market has also been getting tighter. The economy is booming and businesses are vying for law graduates. The national employment rate for the 1999 class as reported by the National Association for Law Placement reached 90 percent for the first time in many years.

The WVU College of Law Class of 1999 employment rate was an outstanding 98.5 percent. WVU has always had above 90 percent employment, but the statistic which best defines our students' success is that 92 percent of those employed were in full-time legal jobs. Nationally, the full-time legal employment figure is only 75 percent. This speaks well for the vigor of the West Virginia firms and for our outstanding WVU students.

The 90 percent national employment figure for 1999 defines the market nationwide. West Virginia firms are finding that out-of-state firms are actively recruiting both associates and partners for lateral moves. If associates and partners move laterally, the firm's recruiting costs increase, and the defections cause a change in firm culture. Firms are being pressed to discover what will recruit associates and retain them, and it is clear that West Virginia salaries need to become more competitive.

It's true that many other factors are considered by students. The stature of a firm and its reputation are important. West Virginia firms shine in both categories.

Most students value the opportunity to work in a firm which offers a balanced lifestyle, and to work with talented established mentors on challenging, meaningful cases. That type of work isn't always available, even to senior partners, but new associates want to have an overview of the firm's work, how they "fit in" and where they can contribute. They want affirmation of their abilities as well a constructive criticism in frequent and fair evaluations. They want the opportunity to participate fully in the life of the firm, and to form collegial relationships that enrich their lives. New associates want fair and candid firm policies that are fully explained to help ensure the opportunity for success. If a firm offers that type of structure, outstanding students not only will be recruited, but retained.

But don't write off competitive salaries. Or benefits. Trends are sometime a little slow coming to West Virginia. But right now, if West Virginia firms want to continue in the tradition of recruiting and retaining top students, they need to add competitive salaries to their other positive attributes.