Herbert Queer; Firm Sacks Grads Citing Unidentifiable Cultural Requirement

Last week we reported the news that Middletons lawyers has decided against renewing the contracts of a handful of grads. We thought this was reprehensible when, in our view, its recruitment literature made an implication that the relevant grads would be kept at the firm after their first year.

do you Bill?

Well, a similar event occurred at national mid-tier law firm Herbert Geer a couple of weeks ago.

—–Original Message—–
From: news@firmspy.com [mailto:news@firmspy.com]
Sent: Friday, 4 March 2011 7:23 AM
To: wfazio@herbergeer.com.au
Cc: Anthea Hancocks
Subject: Grad Sackings

Morning Bill,

We’ve been sent a tip-off that Herbert Geer has decided against renewing
the contracts of several grads. How many did this decision affect? Why
was the decision made?

You’ll note that we came down pretty hard on Middletons for similar
behaviour earlier this week. We think it is a good idea for Herbert Geer
to come back to us with some sort of rationale.

We will be writing on this issue some time early next week.

Regards,

Firm Spy

Bill palmed this one off to HR, who responded as follows:

——- Original Message ——–
Subject: RE: Grad Sackings
Date: Fri, 4 Mar 2011 16:20:11 +1100
From: “Anthea Hancocks” <AHancocks@herbertgeer.com.au>
To: <news@firmspy.com>

Herbert Geer has a good record in the recruitment and retention of its
graduates.  When we recruit graduates they undertake rotations through a number of
practice areas.

At the completion of their year, a decision is made based on feedback
from the graduates themselves and from the business with regard to
performance, positions available in their preferred practice unit and
cultural fit.

Therefore in any one year there is the possibility that not all
graduates will continue with the firm.  This year two graduates were not
offered positions.

Not enough room for two people? We found that hard to stomach when in FY 2009/2010 the Herbert Geer partnership grew by 6% and, according to the AFR (25/6/10):

[the firm] has doubled both its revenue and number of partners in two years.

On this issue of whether graduates are a “cultural fit” at the firm (we think this is a cop-out phrase, by the way), at least Mr Fazio had the fortitude to address the inherent inexactitude of assessing this quality when referencing it in the context of partnership distributions (yes, extraordinarily a partner’s draw is related to their Herbert Geer “cultural fit”):

the individual contributions of partners are examined every year and points are adjusted to reflect both financial performance and cultural fit. Fazio admits the latter is a subjective quality and the accurate measurement remains a work in progress.

So let us get this straight – not even partners have the benefit of knowing the precise cultural quality that is sought by the firm? Seems queer indeed that a partner could lose tens of thousands of dollars in equity distributions because they are grumpy on a Monday…

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