Bonus Schemes and employee rewards

Law firms are service businesses whose main asset are its people. These people are key in building relationships and servicing clients in the way that clients want. They provide a vital contribution to making law firms successful. Many firms have introduced bonus schemes and a lot of them have had the opposite effect to that intended. Poorly thought out bonus schemes have the ability to seriously de-motivate people.

When it comes to rewarding people, law firms need to firstly understand their own objectives and what behavioural change they are seeking from their people. They then need to consider what motivates them and what de-motivates them. With workforces becoming increasingly diverse, firms need to consider the need for different reward strategies for different groups of people and different skillsets.

We work with firms to develop and then deliver bespoke bonus scheme packages that are based on their particular strategic objectives.

Reward packages need to be:

Open, fair and transparent – with all people aware of them in advance
Based on achievable targets that are within their control and bespoke to individuals or teams
Measurable, objective and easy to understand and calculate
Balanced to encourage excellent performance in a number of areas
Supported by training and coaching to enable people to deliver

Contact our Legal Sector Partner, Andy Poole, on 07828 857830 or andy.poole@armstrongwatson.co.uk to discuss how we can help you.

What is it?

Bespoke bonus scheme packages that are based on your firm's particular strategic objectives.

Who is it for?

All law firms of all structures and sizes in all locations.

What are the benefits for your firm?

You will increase staff motivation, morale and loyalty
You will boost productivity and build teamwork
You will link individual and business performance

What do I have to do?

Head of finance to provide information requested in advance. Pre-agreed partners and head of finance to attend planning meeting and report finalisation meeting. Pre-agreed partners and staff to be available for the one day visit for interviews. Entire team to attend the scheme presentation session.

What are the deliverables?

Bespoke bonus scheme with finance training to provide the fee earners with the tools required to achieve their targets.

What is the cost?

£1,505 plus VAT and disbursements for the initial assessment and meeting. The above is the fixed fee payable in advance cost option Additional fees to be agreed based upon bespoke schedule of pricing options produced following the assessment meeting. Fees are agreed in advance. All services will be provided remotely via video conferencing, however, options can be arranged for face to face if required.

How long will it take?

Commonly one to two months, although dependant on individual circumstances.

The process

The process can be tailored to meet the needs of the individual firms but commonly includes the following steps:

Initial face to face assessment meeting to understand the law firm, the priorities of the owners and then to consider the implications and benefits of various options
Analysis department by department including obtaining input from fee earners to understand their motivations and expectations
Provision of summary report on the implications of various reward options together with suggestions for bonus measurement and targets
Consultation process with the owners on the draft report to obtain their input and agree the finalisation of the report
Development of the bonus scheme rules
Presentation of the scheme rules to entire team to engage recipients and drive profitable growth and performance
Delivery of finance training to provide the fee earners with the tools required to achieve their targets

What our clients say

We recognised that we could benefit from a more effective rewards programme for our staff and fee earners in order to reward and further encourage high performance. However, we were unsure about how to structure such a rewards programme in a way which would not have an adverse affect on morale within the firm or the culture of the firm. We were impressed by the knowledge, experience and awareness of Andy Poole and the specialist legal sector team at Armstrong Watson. They really understood the likely impacts of potential rewards programmes and were able to provide a comprehensive report, suggesting a bonus scheme that was bespoke to our business, helping us to drive performance in our key areas. The presentation of the scheme, suggested rules and financial awareness training delivered to our fee earners has had a positive impact on our business.

Ian Kennerley, Partner, Silk Family Law