Clifford Chance to cut City associates in response to 'low NQ attrition'

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  • As always, you need to take the official figure and roughly triple it to take into account all of the "stealth" departures.
    The partners had to do something to celebrate the reduction in the 50p tax rate, this is their present to themselves.

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  • Many partner did indeed vote - with their feet to greener pastures. Think CCs many top funds, PE and corp partners who move to more elite firms.

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  • We all have to go with the times but getting rid of experiance is not always the best way forward to compare it to new cheaper lawyers who just qualified is not a way forward, but who are we to judge what a firm need to do to move forward throught these ruff times.

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  • What's the big deal, other than it's surpising that the downsizing is not much bigger?

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  • I am surprised that 'Christina Bryan' is not on here, vociferously justifying CC's actions!

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  • Problems if you get larger and larger and keep taking on more and more low margin work!

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  • This is surely Stage 2 of the 'Newcastle model'.
    After deciding to stop promoting associates, the partners replace them with more compliant, less expensive underlinings.
    This ensures the partners who arrived in the 2000s are guaranteed to remain in post for another twenty years as their competition is pushed outside the profession.

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  • This is absolutely normal in a large firm. The way the work allocation is done is that there needs to be a certain number of people at each level, and a 20% per year attrition. If people aren't leaving then they're paying extra for people higher up the lockstep to do jobs, when the work can be done by NQs who get paid 61k a year.

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  • I agree that this does appear like stage 2 of 'the Newcastle Model'. However the firm which pioneered stage 1 of 'the Newcastle Model' is certainly not being hampered by a "low NQ attrition"!
    Like making the partners untouchable in a recession, this policy will kill the firm slowly. Standards will slip and those who suffer from this selfish, greedy scheme will make their feelings known within the profession and to clients. It takes a long time to repair a reputation.

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  • In response to Anoynmous@10.24:
    Can't think of any other industry in which it would be readily accepted that a desire to offer a permanent role to someone ending a 2 year fixed-term contract would be used to justify terminating existing employees.
    - I can't think of any other industry where said permanent employees would have an automatic entitlement to 10-20% pay rises year-on-year; where associates are charged out on a similar fee base (indeed, that fee base moves on a 6-month basis at some firms).
    Associates can't have it both ways: if you want lockstep salaries, guess what... you need attrition to keep the pyramid in check. The broader problem, however, is the utter evisceration of CC's strategy - like that other British brand (Tesco), the market has shifted and it needs to urgently redefine itself. 13 redundancies won't make a dent.

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