Many large law firms paying bonuses are not seeing the benefit, research has claimed.


A survey of 43 firms by accountants Deloitte found that about half of those with an incentive scheme pay out a fixed bonus to all staff based on firm-wide financial objectives. 'These schemes are viewed as delivering the least value for money, in terms of impact on both firm and individual performance,' it said, and found many firms are now reviewing them.



The rest mainly have more successful incentive structures linked to individual fee-earners' productivity targets. The majority of such firms said they had 'quite a lot' of impact on individual behaviour.



However, the survey found a need for greater recognition that increased chargeable hours should not be the only strategic focus for delivering firm success, and that bonuses should not be the only driver in providing incentive to and retaining staff.



Deloitte partner Bill Cohen said: 'When firms are designing incentive structures, it is important that these are considered in the context of other factors, such as career progression, training and business development, and the cultural values of the firm.'