In a recent LinkedIn post, legal recruiter Shulin Lee argues that the traditional compensation structures within law firms are fundamentally flawed and counterproductive to fostering collaboration and client sharing.
Shulin Lee, who has 15 years of experience recruiting lawyers, highlights a pervasive disconnect between the rhetoric of teamwork and the reality of how partners are financially incentivized. “They shout: ‘Teamwork!’ ‘Collaborate!’ ‘Cross-sell!’ Then they pay people to be selfish,” Lee states in the post.
“I’ve recruited lawyers for 15 years. And I’ve seen how most firms really compensate partners. They: Incentivise hoarding work, Reward lone wolves, Punish collaboration.”
The Paradox of Partnership Compensation
Lee contends that many law firms inadvertently create an environment where individual success is prioritized over collective growth. This is often achieved through compensation models that heavily favor billable hours and individual client origination, rather than rewarding activities that benefit the firm as a whole.
“If I were building a law firm, I’d flip the script,” Lee proposes, outlining a vision for a more collaborative and growth-oriented approach. This involves a strategic overhaul of how talent is hired and how contributions are recognized and rewarded.
Rethinking Partner Recruitment and Rewards
According to Shulin Lee, the first step in reforming law firm structures is to change the criteria for hiring partners. Beyond just being a “rainmaker,” Lee emphasizes the importance of selecting leaders whose teams demonstrate cohesion and effective collaboration.
The core of Lee’s proposed solution lies in revamping the compensation model. Instead of rewarding behaviors that lead to silos, Lee suggests shifting the focus to:
- Cross-referrals between partners and practice groups.
- Mentorship and development of junior lawyers.
- Collaborative efforts that contribute to the overall expansion of the firm’s client base and revenue.
“Most firms reward: → Billable hours → Individual origination → Keeping work to yourself. I’d reward: → Cross-referrals → Developing juniors → Collaboration that grows the whole firm”
Securing Buy-In for Change
Shulin Lee acknowledges that implementing such significant changes requires strong leadership and commitment from the top. Lee advises engaging with the firm’s key partners to co-design the new compensation structure. “Sit down with your top 3-5 partners. Design the comp structure together. If they’re not aligned, nothing changes,” Lee emphasizes.
While not everyone may be fully satisfied with a new system, Lee asserts that gaining the alignment of the firm’s most influential individuals is crucial for any reform to take root and succeed. Lee concludes by stressing the ultimate impact of financial incentives:
“And people like to say: money’s not the most important thing…. And for most, it really isn’t. But in my experience? It’s usually the deciding factor. Get the money right. Then build everything else around it.”
Lee believes that by aligning financial incentives with desired collaborative behaviors, law firms can create an environment that encourages more sharing of clients and fosters greater overall success and employee retention.
📝 About This Content
This article is based on insights shared by Shulin Lee on LinkedIn.
📅 Originally posted on February 7, 2026 | View original post on LinkedIn →