By Aebra Coe

Law360 (April 29, 2020, 7:55 PM EDT) -- Associates may be stuck in place right now as hiring has ground to a halt during the coronavirus pandemic, but when opportunities open up again, how law firms handled the crisis could have a big impact on whether they retain top talent.

With a number of law firms cutting associate pay and others furloughing attorneys in an effort to remain financially viable through the economic slowdown caused by the outbreak, firms risk hurting morale for rank-and-file attorneys, who may choose to jump ship once hiring picks up if managers fumble how they handle the crisis, experts said.

"Associates still ask about what cost-cutting measures firms took during the last recession when evaluating which firms are attractive to them in a job search," said Michelle Fivel, a recruiter who works with associates at Major Lindsey & Africa. "They want to make sure that they are working for a firm that values their associates and that will give them job security and transparency into their career paths."

That doesn't mean any cost-cutting measures will automatically push associates away in droves, though.

Instead, law firms are walking a line between preserving morale and preserving capital, necessitating a close eye on how they implement any cuts as well as how they communicate them to associates, recruiters said.

Some factors that are top of mind for associates include whether and how much of the financial burden of cuts is shared by partners, whether the cuts are based on income or are the same across the board, and especially how well firms communicate what is happening and how transparent they are about how the firm's attorneys will be affected, said Barbara Mayden, co-founder of legal search firm Young Mayden.

"Lack of communication is as bad as bad communication. When firms are silent and associates are left hanging not knowing what the current thinking is, fear of the unknown is a morale sap," Mayden said.

Rather than the cuts themselves causing lateral movement, the cause of a move will more likely be resentment precipitated by the atmosphere around the cuts, she said.

"Was the associate left with a feeling that the firm treated me less like a human and more like an expensive widget? Did the firm take any measures to allay discomfort, helping associates cope through the crisis?" Mayden said.

Law firms that convey strength, resilience and stability to their associates and demonstrate that there is a viable long-term career there are more likely to keep them, regardless of reductions in pay, according to Dan Binstock, a partner at legal search firm Garrison & Sisson Inc.

"Stability and security are the primary drivers during a period of uncertainty, and usually, for the most part, a decrease in short-term compensation by itself is not going to compel somebody to switch jobs if that's the only factor, unless the decrease is outside of the market norm," Binstock said.

One of the biggest ways recruiters say law firms can prevent attorneys from jumping ship is by keeping them busy. A sense that their talents are not useful to or appreciated by the firm can push associates to start to look around for something new, they said.

A number of firms are keeping associates busy right now by training them to move from slower practice areas to those that are getting an influx of work, or putting them on special assignments serving clients on coronavirus-related issues.

"Firms do try to transition associates they have on board already," said longtime legal recruiter Marina Sirras. "Corporate to restructuring, for example. Health care is becoming very active right now, and so is labor and employment."

Avoiding the optics of hiring people to fill those increased needs even as existing attorneys are getting pay cuts is vital for maintaining loyalty, according to Mayden.

"It will be perceived as not only another mouth to feed when collections will be questionable, but a real stab in the heart of what is left by way of associate morale — you're cutting us back and still hiring?" she said.

Some other actions law firms can take that demonstrate concern for the well-being of their associates, Mayden said, include partnering with providers to offer remote fitness coaching, nutritional advice and meditative exercises; matching attorneys with "virtual buddies" for support; offering support for lawyers who are home-schooling their children; and encouraging ongoing connectedness by, for instance, having group leaders reaching out to lawyers on their teams to make sure they have what they need.

"Associates will be less likely to leave on account of pay cuts if they have been provided a positive, 'we're all in this together' atmosphere," she said.

--Editing by Brian Baresch and Jill Coffey.

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