How to Navigate Salary and Performance Reviews as a Lawyer

How to Navigate Salary and Performance Reviews as a Lawyer

For lawyers, salary reviews and performance reviews can be pivotal moments in their careers. Whether you're in private practice or an in-house role, knowing how to approach these discussions strategically can impact your career progression, earning potential, and job satisfaction. Here’s how to prepare and handle them effectively.

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Understand the Process

Every firm or organisation has its own approach to salary and performance reviews. Some follow structured annual appraisals, while others assess salaries on an ad hoc basis. Before your review, clarify:

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• The criteria used to evaluate performance
• The timeframe for salary adjustments
• How billable hours, client development, or other key factors impact your compensation
• Whether market rates influence your firm’s salary structure

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Prepare for the Meeting

Your review is an opportunity to showcase your value. Prepare by:

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• Tracking your achievements – List key wins, client feedback, and any matters you’ve played a crucial role in.
• Quantifying your contributions – If possible, provide data on billable hours, revenue generated, or client retention.
• Benchmarking your salary – Research market rates for lawyers at your level and in your practice area to ensure your expectations are realistic.

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Some employers will recognise your contributions before you even bring them up, rewarding you on merit. Others may require you to clearly demonstrate your value, so be prepared to advocate for yourself.

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Align Your Goals with the Firm’s Interests

Firms reward lawyers who contribute to their success. Consider how your goals align with your firm’s priorities, such as:

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• Expanding client relationships
• Mentoring junior lawyers
• Increasing efficiency or innovation in legal services
• Enhancing the firm’s reputation through thought leadership or networking

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When firms aren’t as busy and billable work is down, highlighting other ways you’ve contributed becomes even more important. Demonstrating your impact beyond just billables, whether through business development, mentoring, or process improvements - can reinforce your value.

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Approach the Discussion Professionally

When the time comes for the conversation:

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• Stay objective and confident – Present your case with a focus on facts rather than emotion.
• Be prepared for feedback – If there are areas for improvement, ask for guidance on how to progress, and acknowledge your gaps or where you may need support.
• Know your leverage – If you’ve gathered knowledge about market rates, use that information, but keep the conversation focused on your personal achievements and contributions. Salary structures can vary across firms, with different responsibilities, budgets, and expectations. Instead of making broad comparisons, steer the discussion to your individual efforts and the unique value you bring.

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By highlighting your own value, the progress you've made, and how your goals align with the firm’s needs, you can build a strong case that should work in your favour.

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Be Ready to Negotiate

Not every request for a salary increase will be granted immediately. If an increase isn’t possible, consider negotiating for:

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• Performance-based bonuses - These can be tied directly to your individual achievements or team goals, offering a way to reward your contributions without affecting base salary.
• Professional development funding - This could include support for attending conferences, obtaining certifications, or other learning opportunities that enhance your skills and value to the firm.
• Increased flexibility in work arrangements - Whether it’s remote work options, adjusted hours, or the ability to better balance work and personal commitments, flexibility can enhance your job satisfaction and productivity.
• Clearer career progression pathways - Discussing a formal framework for advancement, including milestones and expectations, can provide clarity and motivation for your future growth within the firm.

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However, always read the room before negotiating. If your firm has a strict salary structure, pushing for an increase beyond policy may not be effective. On the other hand, if salary decisions are more team- or person-specific, there may be room to negotiate.

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Follow Up‍

After your review, send a follow-up email summarising the key points discussed, including any specific commitments or areas that need further consideration. If no decisions were made or if your employer needs more time to think it over, propose scheduling a follow-up meeting to revisit the conversation and address any outstanding points. This ensures clarity and keeps the dialogue open, reinforcing your commitment to your career development.

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How Chisholm Clarke Can Help

Salary and performance reviews don’t always go as expected. If you’re feeling under appreciated, stuck, or unsure of your next steps, Chisholm Clarke can help. We provide salary benchmarking, market insights, and career advice to ensure you’re being recognised and rewarded appropriately.

If you’re considering your options, reach out to us today to explore how we can support your career growth.

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sarah@chisholmclarke.co.nz

sam@chisholmclarke.co.nz

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