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Are deferrals the answer?

Updated: Jul 7, 2023

We’ve been hearing much talk about the potential for deferrals lately. The last time we saw mass deferrals was during the Great Recession. At that time, deferrals came on the heels of a slew of associate layoffs. This time, we haven’t seen layoffs en masse – one might assume we learned our lesson from the years-long hangover we suffered from those layoffs – but deferrals could be another story. The benefits of deferrals are clearer, and the downsides less severe.

Although deferrals can save some money, the primary case for deferring associates relates to associate growth. Even during “normal” times, it can be a challenge to integrate a large number of associates. When work is light, finding adequate billable work to get everyone off to a successful start is impossible. Under those conditions, new associates can fail to meet expected benchmarks for growth and miss opportunities to connect meaningfully with colleagues, leading to decreased performance, engagement, and morale over time. Deferrals allow firms to push back start dates to a time when, presumably, workloads will pick up, and incoming associates can be properly engaged.


But are deferrals the only answer or the best one? There are risks in deferring associates, including interference with integration for the following class, unwanted attrition during the deferral period, and hits to a firm’s reputation and associate morale.


Additionally, our lockstep system of promoting associates demands that we continue to move associates through the pipeline, even in slow times. So, I’d like to offer a few strategies that may be used when workloads are light, but firms aren’t ready to jump to deferrals.


1. Ensure even work distribution and supplement with training and other projects. To ensure adequate growth of all associates, you’ll want to put extra resources into ensuring the existing work is evenly distributed – and not just from a quantity perspective. All associates should have equal access to quality work assignments that promote growth and teach them essential skills, even if those assignments are sparse. Staying on top of skill benchmarks will be crucial, as associates may not get multiple reps to master a concept. Furthermore, supplementing with training will become incredibly important to support on-the-job learning where multiple reps aren’t possible. Experiential learning platforms like AltaClaro or Praktio can help fill on-the-job learning gaps. 2. Involve DE&I professionals in staffing. When work is sparse, it can be easy for associates to get lost in the shuffle. Too often, the first to get lost are diverse associates. It’s critical to pay close attention to this dynamic, so it may be more important than ever to bust down some siloes and involve your DE&I professionals in areas where they may not traditionally have a role, including staffing. When you have staffing meetings, include someone from your diversity team to weigh in and ensure that diverse associates get the opportunities they need to grow and thrive in the firm. 3. Offer shadowing opportunities. If there isn’t enough work to go around, offer associates the opportunity to “shadow” a matter - and make sure the shadowing is substantial. Similar to the guidance above, make sure shadowing experiences are distributed equally so it doesn't become a "haves" and "have nots" situation. One junior can be the billable associate, and a second can be a shadow, attending all meetings and working alongside the assigned first-year (or second-year?) associate. This obviously won’t be billable to the client, but will offer the shadow associate an opportunity to learn. The junior associates can work through issues as a team. The shadow can draft their own sets of documents as a learning experience. Consider offering billable credit to incentivize learning through this channel. 4. Work on Knowledge Management or Client Development projects. New associates can learn a lot from working on Knowledge Management or Client Development projects. Now is the time to push these initiatives forward, but often we neglect to make it happen or fail to engage junior associates in the process. It may ultimately be more work to involve the juniors, but the payoff will be worth it down the road when they come out with a deeper understanding of their work. Make sure the senior associates and partners supervising these projects understand the underlying purpose of involving the junior associates and tie these initiatives explicitly to training.


5. When possible, allow associates to cover busier practice areas. Many of the skills most critical for first-year associates to develop are not practice area specific. New associates are learning responsiveness, attention to detail, and how to contribute as part of a team. Reallocating juniors to busier practice areas where they may be able to add more value can help them gain experience that will transfer back to their practice when the work picks up again.


By: Kandice Thorn, Founder, WorkBetter for Lawyers

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