Nick Pappas’ Post

Very insightful and especially crucial for big law associates. Calculate your Return on Time Investment.

At Lateral Link, Nick Pappas emphasizes the importance of understanding your true compensation by calculating your Return on Time Invested (ROTI). For instance, a $250,000 salary with high billable hours might yield $79.40/hour when considering ROTI, while a $190,000 salary with fewer billable hours can yield $70.40/hour. Non-billable hours significantly impact your actual earnings. To strategize ways to improve your ROTI, contact Nick Pappas at npappas@laterallink.com. #LateralLink #LegalRecruiting #LegalCompensation

You may be misunderstanding a key element of your compensation. Your salary number isn’t the only number you need to consider. You also need to consider your pay in terms of the total time you invest in your work, i.e., the time you spend getting ready for work, eating, breaks, non-billable work, and commuting. I call this your work ROTI (return on time invested), and you need to factor this in to get a truly accurate picture of your compensation. If you’re making $250,000, have a billable hour requirement of 2100 hours, and have a ratio of 12 hours needed to bill 8 hours, your work ROTI in this scenario would be approximately $79.4/hour. A 3:2 ratio of hours worked/hours billed is pretty common. If you didn’t factor in your work ROTI, you would incorrectly think you're earning $119.10/hour. If you make $190,000, have a billing requirement of 1800, and an hours ratio of 3:2 (12 hours needed to bill 8), you would have a work ROTI of $70.4/hour. If you didn’t factor in your work ROTI, your compensation would be $105.56/hour. While there’s a $60,000 salary gap between these two examples, it’s actually a much smaller gap when you factor in the work ROTI—a difference of $9/hour. When you add your work ROTI to the equation, you realize that the non-billable hours needed to bill 8 hours drive your compensation per hour down. It’s not surprising that lawyers are mad about going back into the office because they know that extra time preparing, commuting, etc., is driving down their hourly compensation. What is surprising, however, is when lawyers take the higher salary number without regard to a realistic estimate of their work ROTI. They may get a higher base salary but without commensurate gains for their work ROTI-adjusted earnings. I frequently speak with associates who have a terrible ROTI. We talk about increasing their pay, decreasing their hours, or getting them more flexibility so they don’t have to dedicate so much time to non-billable work-related activities. If you want to maximize your work ROTI, email me (npappas@laterallink.com) or DM me to set up a time to strategize. #lawyers #careers #compensation

Do not disclose your salary to anyone!❌ Revealing salaries to coworkers are often considered as a tabboo and still discouraged at workplaces.💸🫰🏻 Have you ever wondered why this practice is taken up though? Because if you find out that your coworker is getting paid higher than you, You might question your presence in the company. Feeling undervalued and overworked is often a common thing that employees tend to experience once they dive deep into the indifferences. You might think that, why is this person being paid more than me by doing less work than me.🤑 The solve to this is 👉🏻 Know your worth 👉🏻 Communicate clearly 👉🏻 Define boundaries at work Don't shy away to pull back your chair, when the barter is unequal.⚖️ Don't let the blabbering buds have the lion's share.🗣️🦁 Salaries are not just to pay bills, it's more like a matter of dignity. #salary #corporateculture #workculture #officelife #corporatelife

You need to serve a 3-month notice period, but the company can terminate you without any prior notice. Your hike depends on your previous salary, no matter how talented you are. You have to provide a valid reason with proof to take your pending leaves and also complete your tasks. You can't be 10 minutes late as it's marked as a half-day, no matter how many extra hours you give to the company. You can't make both your boss and your colleagues happy simultaneously. If you get promoted through hard work, then according to your colleagues, you are definitely a bootlicker. No matter how loyal or hardworking you are, you can be replaced anytime for no reason. And if you are already aware of these points, then you are an everyday hustler. If you take leaves, then you need to provide support even on vacation. If you are not aware of these, then welcome to the corporate world, dear. Have you ever faced any of these situations?

LEAP YEAR AND PAY 💷 2024 is a leap year and therefore there is 1 additional day in February. The 29th is also a week day. Are employees entitled to an extra day's pay in a leap year? An employee's entitlement to pay for the extra day in a leap year will depend on whether they are salaried or are paid according to the hours they work. SALARIED - A salaried employee who receives the same basic pay every month will not be entitled to extra pay to account for the extra day in 2024. These workers are paid a set salary for the year, and it does not make a difference if that year includes an extra working day (except in the unlikely event that their contract provides for additional pay in a leap year). That said, if a salaried worker is earning close to the National Minimum/Living Wage, you should check that an additional day of work does not send them below the minimum wage when their earnings are averaged against days worked. HOURLY PAID - an employee who is paid according to the hours they work, or the amount of work they do, will be entitled to be paid for all work they do, regardless of the date or number of days in the year. If they don’t work the extra day, they’ll have no entitlement to extra pay. #leapyear #pay

Is Your Paycheck Reflecting Your Worth?   Organizations often claim that the compensation packages, including salary bands and non-monetary benefits, are competitive within the industry. They assert that these packages, reviewed annually and aligned with company performance, adequately compensate the employees.   However, from the employees' perspective, the reality can sometimes feel quite different. Many feel their pay does not match the industry standards for similar roles, especially when considering the workload. There's a strong desire for more transparency and fairness in how salaries are determined, with concerns that benefits do not fully compensate for the demands of their jobs.   So, what can you do? I believe it's crucial to take proactive steps in managing your career finances. Seek out high-growth industries and companies that offer better compensation opportunities. Prioritize positions in learning environments that promise long-term benefits over immediate pay. If you're unhappy with your current pay, considering the industry norms and role expectations, it might be time to reassess your position and explore new opportunities.   The question we need to keep asking in our organizations is: Are we truly providing compensation that reflects the value our employees bring to their roles? It's not just about meeting industry standards but about rewarding the real worth and effort of our team members. Elephant in the Room #5 #EITR #EmployeeFirst #CareerGrowth #FairPay

I personally don't like to give 💲 compensation 💲 ranges over a written or LinkedIn message because: 1. It immediately puts limits around what we have to offer, when we might not have said limits ❌ A quick conversation (where I'm always happy to share a range) can get us on the same page with compensation expectations. Maybe you deserve a salary outside the range because you have THAT good of experience. Maybe you're relocating from a more expensive market. Or you're actually looking for a little more work/life balance and willing to take a pay cut but want to know what that looks like. Either way, compensation is something that should be DISCUSSED. You're going to end up with an offer you are pleased with if this conversation is open from the start. #compensation #setexpectations

LEAP YEAR AND PAY 💷 2024 is a leap year and therefore there is 1 additional day in February. The 29th is also a week day. Are employees entitled to an extra day's pay in a leap year? An employee's entitlement to pay for the extra day in a leap year will depend on whether they are salaried or are paid according to the hours they work. SALARIED - A salaried employee who receives the same basic pay every month will not be entitled to extra pay to account for the extra day in 2024. These workers are paid a set salary for the year, and it does not make a difference if that year includes an extra working day (except in the unlikely event that their contract provides for additional pay in a leap year). That said, if a salaried worker is earning close to the National Minimum/Living Wage, you should check that an additional day of work does not send them below the minimum wage when their earnings are averaged against days worked. HOURLY PAID - an employee who is paid according to the hours they work, or the amount of work they do, will be entitled to be paid for all work they do, regardless of the date or number of days in the year. If they don’t work the extra day, they’ll have no entitlement to extra pay. #leapyear #pay

Should You Work for a Vision or Work for a Salary? Working for a vision means aligning your efforts with a larger purpose or long-term goal that inspires and motivates you. It often leads to greater job satisfaction as you contribute to something you believe in and are passionate about. Vision-driven work taps into intrinsic motivation, where the joy and fulfillment come from the work and its impact. Working for a salary prioritizes immediate financial needs and stability, which is crucial for meeting personal and familial obligations. This approach focuses on the job's tangible, short-term rewards, such as salary, benefits, and bonuses. External rewards like money, recognition, and status often motivate salary-driven work. Early in your career, you might prioritize salary to build financial stability. Later, you may shift towards a vision-driven approach as financial pressures ease. Reflect on what excites and motivates you. If you’re passionate about your work and believe in its purpose, you will likely find greater satisfaction in a vision-driven role. Consider how each approach impacts your work-life balance. Salary-driven jobs might offer more stability but less personal fulfillment. Choose an organization whose values align with your own. Working for a vision is more fulfilling if the company’s mission resonates with you. A vision-driven approach requires a supportive environment that nurtures creativity, innovation, and purpose. Choosing between working for a vision or a salary depends on your circumstances, career goals, and values. Ideally, finding a balance between the two—where your job offers financial stability and alignment with your vision—can lead to a fulfilling and sustainable career. Whether you prioritize immediate financial rewards or long-term fulfillment, making deliberate, informed choices that support your overall well-being and professional growth is crucial. #vision #salary #peopleengagement #benefitsandcompensation #totalrewards #cultureengagement #employeeexperience