Bar News - February 9, 2001
Economic Survey Shows Gender Gap Widening
By: Lisa Sandford
IS THE GENDER gap widening for attorneys in NH? That's what the numbers say, according to experts offering their take on the results of the Economics of Law Practice in NH 2000 survey as part of this year's NHBA Midyear Meeting on Jan. 26. In addition to a discussion of the gender gap in income for NH attorneys, the forum also offered lots of practical information and advice on controlling overhead, effective marketing and creating a vision of the future of a law practice.
The most discussion of the forum centered on survey results that seem to indicate that the gender gap is growing when it comes to attorneys' salaries in NH. Hon. Phillip S. Hollman, associate justice of the NH Superior Court and a member of the NHBA's Gender Equality Committee, said the results of the survey are "very scary" when it comes to salary differences between male and female attorneys.
According to survey results, more women than ever before are entering the legal profession in NH; female new admittees have begun to outnumber new male admittees to the NH Bar (see Nov. 17, 2000 issue of Bar News). Despite this increase in the number of female attorneys in NH, women are still earning considerably less than men in the practice of law. In 1996, the median salary of all NH male attorneys (full- and part-time) was $65,000, compared to $44,500 for female attorneys. In 1999, median salary for NH male attorneys rose to $75,000, while median salary for female lawyers increased to only $49,500.
"The gender gap in income…is getting larger, not smaller, a result that runs counter to the assumption that the gap is closing in NH," said Hollman. In nearly all categories, the survey indicates, men are making more money than women as practicing attorneys. In corporate law, there is a $36,000 difference. And even in family law, traditionally thought to favor female lawyers, the average male attorney makes about $25,000 more than the average female. "The statistics are shocking," said Hollman.
CLE attendees were interested in these statistics and in further exploration of the gender gap in income. Stiffman suggested that the sub-specialties new female attorneys are choosing might help to explain the difference, in part-in other words, more female new admittees might be opting to go into lower-paying areas of practice. Attorney Honey Hastings of Amherst suggested that NH female attorneys are billing at a lower rate than their male counterparts, thus also contributing to the income difference. Stiffman said that he is able to make those comparisons with the survey data and will provide the information to the Bar as soon as possible. He noted, however, that despite any contributing factors to the income difference, there still exists the factor of "flat-out [gender] discrimination."
"I believe a large component is perception of the public, which we can't change," agreed John A. Lassey, managing partner at Wadleigh, Starr & Peters.
Survey overview
The survey forum, organized by the Bar's CLE Committee and Law Practice Management (LPM) Section (which sponsors the survey), first offered an overview of the survey's results by Lawrence H. Stiffman, Ph.D., MPH. Stiffman is president of the Applied Statistics Laboratory in Ann Arbor, MI, which conducted and put together the survey.
Stiffman reviewed survey results such as attorney incomes, overhead costs, salaries for new associates and billing rates to give an idea of economic and demographic trends for NH law offices. "One of the purposes of a survey like this is to try to get a finger on some of the realities," Stiffman said.
Some of the highlights of the survey, as compared with the last survey in 1996, included:
- Median attorney net incomes in NH are rising barely to keep pace with inflation.
- Starting salaries for new associates in NH average $35,000 to $40,000. Inflation in salaries for new associates hasn't risen to the astronomical level it has in places like Silicon Valley and Washington, DC, where starting salaries can be as high as $145,000.
- Due to a jump in labor costs, overhead costs of law firms are up about 35 percent.
Marketing moves beyond advertising
Attorney Lassey, a member of the LPM Section, examined trends in marketing of lawyers and law firms. The bottom line: more lawyers are moving away from what Lassey calls "in-your-face" direct advertising to more substantive marketing, by promoting themselves through seminars and through comprehensive marketing strategies, often with the help of PR professionals.
"Due to information overload, it's hard to make an ad stand out with so many others out there," said Lassey. "And right now it's a buyers' market. There are many more lawyers than there used to be, clients are more savvy, they have access to many resources to evaluate attorneys. More lawyers are learning that they need to market and promote themselves, but not necessarily through advertising," he said.
For those making use of the Internet, which he says is an inexpensive way to reach potential clients, Lassey offers this advice: Be selective. What is believed to be junk e-mail is just as likely to go into the recycling bin as a promotional mailing is to go into the trash.
Effective spending
Eleanor A. Dailey, a legal administrator with Boynton, Waldron, Doleac, Woodman & Scott and member of the Granite State chapter of the Association of Legal Administrators (GSALA), offered tips, tricks and techniques for reducing overhead. Some of Dailey's suggestions:
- Go from a weekly to a biweekly payroll to cut down on processing costs.
- Use part-time or flex schedules to help reduce benefits costs.
- Don't use a temp agency unless absolutely necessary.
- Hold onto skilled, loyal employees by giving them input into decisions that will affect them directly.
- Buy in volume; utilize the buying programs of the GSALA and NH Bar.
- When purchasing bigger-ticket goods or services, put them out to bid. In an attempt to outbid each other, vendors will give you the best price.
- Use a broker for pricing health plans.
Segmentation of practice areas
Arthur G. Greene of Dewhurst & Greene, who serves as chair of the LPM Section, relayed his impressions of recent developments in the practice of law as illustrated by the survey: lawyers in many places are making lots of money; a lot of lawyers are dissatisfied with the profession; law firms are falling apart; and there is a re-defining what it is to be a lawyer.
Part of that re-definition of practicing law has been the increasing segmentation of practice areas, according to Greene. There are regional, national and international firms; large, single-jurisdiction firms, which are prominent in NH; boutique firms, which are very specialized in one area of practice; and solo and small firms, which are also prominent in NH.
According to Greene, as this segmentation has evolved, firms have been forced to not only "recognize their place," but to also distinguish themselves from other firms in their segment. Especially in NH, where the majority of firms are single-jurisdiction and solo and small firms, becoming unique in your field is crucial, said Greene.
"Getting your fair share of the business isn't going to be enough," Greene said. "Your goal shouldn't be to be the best at what you do, but to be the only one to do what you do the way you do it," he said.
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