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Incentives for Lawyers

Author

Listed:
  • Ann P. Bartel
  • Brianna Cardiff-Hicks
  • Kathryn Shaw

Abstract

The authors study an international law firm that changed its compensation plan for team leaders to address a multitasking problem: Team leaders were focusing their effort on billable hours and not spending sufficient time on leadership activities to build the firm. Compensation was changed to provide greater incentives for the leadership activities and weaker incentives for billable hours. The effect of this change on the task allocation of the firm’s team leaders was large and robust; team leaders increased their non-billable hours and shifted billable hours to team members. The firm’s new compensation plan (combining an objective formula with subjective evaluations) is the fastest-growing compensation system among law firms today.

Suggested Citation

  • Ann P. Bartel & Brianna Cardiff-Hicks & Kathryn Shaw, 2017. "Incentives for Lawyers," ILR Review, Cornell University, ILR School, vol. 70(2), pages 336-358, March.
    • Handle: RePEc:sae:ilrrev:v:70:y:2017:i:2:p:336-358
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    Cited by:

    1. Argyro Avgoustaki & Almudena Cañibano, 2020. "Motivational Drivers of Extensive Work Effort: Are Long Hours Always Detrimental to Well‐being?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(3), pages 355-398, July.

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