Compensation for attorneys can be determined by a number of objective and subjective factors including tenure, quality of work product, profitability, and information gathered from salary studies. You may know how your compensation stacks up to others at your firm or even what people make at other firms, but do know if it is comparable to what you would make in the open market?
A lot of attorneys have no idea if their compensation measures up to their true market value. By true market value, I am referring to how much you could expect to earn if you decided to explore other options in the legal market – not what a typical attorney makes after so many years of experience. Some people are actually making more than they would in the open market because they are currently being rewarded for factors that are not given the same consideration by prospective employers. Yes, loyalty and teamwork is valued by all employers, but it is often measurable attributes such as business generation and working receipts that carry the most weight in the open market. This is especially true in a post-recession economy where the ability to generate revenue is becoming expected of all.
If you are working hard to generate business and starting to see real revenue growth as a result, you should ask yourself how much of your potential income is going to others who are not as productive (especially those who make no effort). There may be other factors that make your current work experience so positive that the potential of lost income is okay, but if you could have a similar experience and make considerably more money elsewhere it might be worth your time to explore your true market value.