Blame the dot coms, if you run a law firm and that first-year law associate you just interviewed scoffed at a starting salary of $50,000 or $60,000. But if you are that young lawyer, thank them – thank the dot.coms from the bottom of your checking account. Rhode Island law firms are finding that they have to push the intangibles in what is becoming an increasingly aggressive climate of recruiting new lawyers.
Gerald J. Petros, a partner and vice chairman of the litigation department at Hinckley, Allen & Snyder in Providence, said a substantial change in the way first- year law associates are paid took place on the West Coast about a year ago. In response to an explosion of dot coms, said Petros, California law firms immediately upped the ante in an attempt to recruit the lawyers they needed. New York followed suit soon after – and Boston, said Petros, was not far behind.
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”It was a quantum leap,” said Petros.
And just how high did the salaries leap? Petros said in Boston today, a first-year associate can make about $135,000 per year at a big firm – with bonuses upping that to $150,000 annually.
”There are at least six Boston law firms that are paying that salary to first-year associates,” said Petros. “It presented a dilemma to other Boston firms and those outside of that market.”
For a Rhode Island law firm, the dilemma is simple. How do you convince a young professional, fresh out of law school, that $60,000 in Providence beats $135,000 or $150,000 in Boston or New York.
At Hinckley, Allen & Snyder, said Petros, the focus is on quality of life and other important intangibles, starting with the very kind of experience a young lawyer might expect upon joining the firm.
”We do not hide associates in a library or a warehouse researching documents for a few years,” he said. “Lawyers practice law. They grow and mature quickly here. They get lots of experience.”
Petros also points to a housing market far more affordable that that of the one surrounding Boston – and of a much more manageable commute.
”There is a considerable difference in the cost of living,” he said. “And you can get a beautiful home here – often near the water.”
Comparing the costs
Click on the Yahoo! search engine and track down its real estate section and the differences in cost of living between any city or town are measurable.
For example, according to the real estate relocator program, the average cost of a 2,000-square-foot home in Providence is approximately $210,000 – with annual property taxes hitting $3,570. The monthly electricity bill at such a home is $84. In Boston, the average cost of a 2,000-square-foot home is approximately $560,000 – with annual property taxes hitting $7,840. The monthly electricity bill at such a home is $92.
The population of Boston is approximately 560,000, while Providence is home to about 155,000.
As for a direct comparison of salaries, the argument can be made that if you are going to work in Boston – you had better be making more money. The differences between the cities are dramatic.
A salary of $100,000 in Providence, for example, is equivalent to a salary of $242,424 in Boston. In other words, what you can afford with $100,000 in Providence, requires $242,424 in Boston. And what you can afford with $100,000 in Boston, can be had for $41,250 in Providence.
