I’ve been watching the mad rush to match Cravath’s salary increases with a sense of wonder. The market is (mostly) flat. Demand is (mostly) down. There are still far too many law graduates. It’s not like it’s a seller’s market.
And then I saw the icing on the cake. Last week, law firms were raising salaries one day, and laying folks off the next. Talk about bad optics. Sure, the savings look tempting, but think about the costs.
You’ll have to pay severance. You may have to pay for outplacement services. But there are hidden costs as well.