<p>Firms have tried many ways of handling associate pay. Years ago, many firms went with bonuses based on hours - the more hours the more money. This led to problems with honesty. There were reports of associates billing numbers of hours that were simply physically impossible. Clients complained and firms had to write off a lot of hours so the result was not what they had hoped for. Additionally, firms started losing some good people who just weren’t interested in working 24 hours a day, or pretending they did. Firms went back to lock step for the most part. Some set a minimum numbers of hours before becoming bonus eligible. Some have merit bonuses based on a variety of factors, with hours being only factor. Some firms give two bonuses - one based on individual merit and one based on how well the firm does generally. There are myriad combinations of all of these methods. There is no perfect way. </p>
<p>Firms want a certain number of young associates to leave, but they want a certain number to stay too because there is a lot of money invested in training. Partners like to have continuity in their teams. Some firms are better than others at giving hints to the associates they aren’t interested in keeping around long term. The quicker they let them know, the kinder it is to the associate.</p>