Tech Tip #181: Utilization vs Realization Rate: Building Productivity-Based Compensation Models

Law Firm Productivity

When building an incentive compensation model for your firm it’s important to remain consistent, transparent and objective. For that reason, we recommend basing compensation on realization rate vs utilization rate. Doing this ensures that all members of your firm are compensated based on what is collected. This will remove any controversy associated with any adjustments or credits that come at a later date, affecting compensation based on utilization rate. Learn more about the complexities of creating a productivity-based compensation model and how CosmoLex can make it easier


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