There was a time, not too long ago, when the majority of law firms remunerated their solicitors solely on the basis of "time served" - or Post Qualification Experience (PQE).
Lawyers qualified with their firm and their salaries increased year on year, based on seniority. The same applied with charge out rates, the more senior the lawyer the higher the charge out rate.
In any profession, experience is hugely valuable. But by assessing people solely on PQE what incentive is there for high achievers who want to break the mould?
Remunerating lawyers and determining their charge out rates based solely on seniority is, in my opinion, outdated. It restricts high achievers and encourages mediocrity.
Thankfully there are now signs that things are beginning to change with a number of national firms calling for the abolition of PQE as a measure of progress.
This has got to be good news. Of course there has got to be a balance between experience and performance when deciding on remuneration and charge out rates. But equally, you can't successfully grow a business unless you recognise and reward your best people.
A number of lawyers will disagree. They will argue that the legal profession is different and it is rather crude to pay for performance.
If you are working in an environment like this and feel frustrated by it, maybe it's time to look for a new challenge. Thankfully, there are now plenty of places for you to go.
IAN AUSTIN IS MANAGING PARTNER AT HALLIWELLS