<p>One of several big problems facing the legal profession at the moment, as highlighted by this thread, is that while lawyers view themselves as being ‘professionals’ most of their clients now view them as a ‘service provider.’ </p>
<p>As with other service providers, businesses are now looking much more closely at costs vs tangible value. For the vast majority of legal work, if you can get the job down well and do it for less than the next guy you’ll get the gig. Top firms are having to compete on price in ways they never had to before. </p>
<p>All these arguments trying to say “if I can bill out an new associate for $X per hour for X hours per year then it’s profitable for the firm to pay a new associate X” are totally missing the point. </p>
<p>Yes that math works out, but it assumes a firm is able to keep an army of new associates fully charged out at those rates–and that’s not happening. Hence many of the changes taking place (smaller associate classes at top firms… permanent associate type positions with much smaller salaries…)</p>