Creating a culture of well-being entails thoughtful reexamination of the traditional compensation models and metrics for lawyers. This does not mean dispensing with the billable hour model entirely, but it does mean assessing alternative or additional ways to compensate lawyers and staff for performance. The billable hour can be a major source of stress and anxiety. Considering how to value lawyers and staff’s contributions in other ways may positively impact this well-being risk factor.

Multifactor compensation systems are one possible starting point. These models should focus on both results and professional growth. Multi-factor compensation structures can also tie to laudable outcomes, such as a successful result for a client or positive client feedback.

Consideration should also be given to bonus compensation structures that consider more than a lawyer’s impact on the organization’s profits realized. Legal employers can look to client results, going above-and-beyond on a certain project, and a willingness to take on new challenges and be supportive of other members of the firm. The goal is to reward employees for involvement in activities that both enhance the firm’s bottom-line and that they find fulfilling on a professional level. Doing so will bolster overall morale and well-being and promote a culture of initiative taking within the organization.

Taking a careful look at performance evaluations is another way to reduce stress and the mystery associated with who advances and who does not. Firms should implement fair and objective performance evaluations with explicit, objective, observable, and measurable criteria applied fairly to all employees.

• We have an Open Books policy and have routine financial updates across the firm. Our Paralegal is the highest person, followed by our Leader/atty, followed by our Admin Angel. There is less than a $10k difference between each person’s salary at this time (I am working to pay myself more!). As staff did not need health benefits, we make a compulsory 6% of each staff person’s salary to their 401K plan, with no matching requirement. We also have a voluntary profit-sharing plan, up to $10K or 10% of the person’s salary, whichever is greater. We understand these benefits to be very competitive.
• Annual bonuses for attorneys are calculated by analyzing not just billable hours but also contributions to the firm and to the outside community through volunteer work and leadership roles. Our firm encourages its employees to be involved with the community and that involvement is factored into compensation.
• We regularly survey and check in with staff regarding compensation programs to ensure alignment with wellbeing. Offer a profit sharing program that is tied to individual and collective metrics, to drive incentives to collaborate, take time off and support the team’s collective success.