Redwood Analytics

Law.com recently published an interesting follow-up to a topic we discussed on the blog almost a year ago, apprenticeships, or paid training programs.  The article is mostly positive from the participant's viewpoint, despite the proven cost, which for the most part has not been recouped by lowering the salaries of the first year associates who participate in the apprenticeships. 

From Law.com:

Proponents hail the programs as a positive step away from the sink-or-swim environment many young attorneys encounter when they show up at large firms, and as a practical response to the growing cost-consciousness of clients. The firms bill at much lower rates or not at all for work performed by the apprentices, who earn lower salaries than the industry standard.

The upside seems huge, however.  With more and more GCs stating that they are unwilling to pay maximum bill rates for first years, this is a bargain unlike any other alternative fee around these days!  They get free or greatly reduced rates, and they also have the benefit of young associates who are learning about their business from the inside out.  The job satisfaction from the participants will also benefit the firm, as associates develop within the firm instead of leaving for greener pastures.

I think the payoff on these arrangements is still 2-3 years out perhaps, and it will be interesting to see which firms can hang in there that long, and which other firms eventually jump on the bandwagon.  The potential for increased business from clients who are satisfied with the services and pricing provided by these programs is great.