Pay inequality between firm-grown and lateral associates?

[Ramesses]

I recently discovered that lateral associates at my firm are paid significantly more than the firm-grown associates (i.e. articled at the firm or have been here for at least three years). It seems the pay difference compound over time and do not "even out" at my firm as they do at some other firms. 

In the last year or so, my group hired associates junior to me and offered them salaries equal to mine. A lateral associate that is the same year of call as me was offered significantly more than me. Meanwhile last year, I received a small raise and bonus because the markets were bad despite being the associate in my group with the most hours and was assured my performance was good.

A number of firm-grown associates have left my firm in the last few years, partially over this issue, but it has never really bothered me until now.

Perhaps it is because of the hours I have been working recently, but this is beginning to affect me increasingly. I keep thinking about how underpaid I am compared to others at the firm and how much less I would be making over the course of my career due to the compounding. 

I am unsure what to do about this. One of the associates who recently left said I should leave too since that is the only way to get ahead salary-wise but I am unsure. I do not love my practice area nor the people I work with but I am happy enough. I am unsure if the situation would be better at another firm or whether the people and practice culture would be better elsewhere. 

Is this a common situation at firms? Should I just suck it up? 

Thanks in advance for the advice!

 

[Bob Jones]

Either renegotiate at your next opportunity or consider laterally elsewhere, if you can secure more compelling compensation. 
 

I wouldn’t worry and overthink what others are making. Firms aren’t unionized and despite informal comp scales across firms, you’re not in a union and each person’s comp is specific to them (or at least should be). 
 

Good luck. 
 

 

[Diplock]

Nut up and advocate for yourself. If you are indeed performing as you believe, the firm will pay you more rather than lose you. If they can get away with paying you less, they'll do that too. Why wouldn't they? Remember your fundamental job is to be an advocate. If you can't even do that for yourself, you're not as good as you think you are.

[Bob Jones]

On 8/18/2024 at 8:55 PM, Diplock said:

Nut up and advocate for yourself. If you are indeed performing as you believe, the firm will pay you more rather than lose you. If they can get away with paying you less, they'll do that too. Why wouldn't they? Remember your fundamental job is to be an advocate. If you can't even do that for yourself, you're not as good as you think you are.

“Nut up” made me think of something my uncle Paulie would say. Good observation re your comment. 
 

“Welcome to the NFL, rookie”

 

[Scrivener]

It can be helpful to know what others are making to give context to the negotiation. I'm going to have no idea what's reasonable to shoot for, when it comes time to have this conversation. 

**This site was gathering income info for different locations and practice areas before; was that ever published??

I'm told that if I'm meeting my targets, I can talk to them about getting more money, but if my salary increases they're bound to adjust my targets (or why would they just... Give me more money?) and I can't see why they'd agree to adjust my bonuses to be more beneficial just because I'm doing well.

Some insight on how this works would be amazing. I feel like this is helpful to OP as it's talking about how to get with the pay of the laterals while staying.

[Bob Jones]

59 minutes ago, Scrivener said:

It can be helpful to know what others are making to give context to the negotiation. I'm going to have no idea what's reasonable to shoot for, when it comes time to have this conversation. 

**This site was gathering income info for different locations and practice areas before; was that ever published??

I'm told that if I'm meeting my targets, I can talk to them about getting more money, but if my salary increases they're bound to adjust my targets (or why would they just... Give me more money?) and I can't see why they'd agree to adjust my bonuses to be more beneficial just because I'm doing well.

Some insight on how this works would be amazing. I feel like this is helpful to OP as it's talking about how to get with the pay of the laterals while staying.

ZSA has a decent salary guide, give that a try: https://www.zsa.ca/salary-guide/

Assuming comp reviews may be coming in early 2025 for your firm, I would consider bringing up your concerns then, point to your accomplishments, what others are paying (without being aggressive), and ask for X moving forward. 
 

If they don’t play ball, then I would start searching for a new role. I’m sure you’ll be a shoe in at any other similar firm.