Community Perspectives: With current inflation at 7.7% and a recession likely, how is your team handling rate increases in 2023?

In-house legal professionals talk about how their legal teams are handling the economic downturn and inflation challenges with regards to compensation.

Community Perspectives: With current inflation at 7.7% and a recession likely, how is your team handling rate increases in 2023?

(Author) Legal Professional

I’m curious how other in-house teams are handling 2023 rate increases given the current inflation rate of 7.7% and the possibility of a recession in 2023? Are you holding flat or providing a slight increase in 2023?

General Counsel Responses:

  • I got mine in September - 2.3%

  • I think we will be getting 4-5% raises.

Counsel Responses:

  • I find out tomorrow. Update: It's 7% - I'll take it!

  • Saying no to them.

  • I think it’ll be difficult for companies to hold flat because of inflation, but because of the recession I’m anticipating a minuscule increase =(.

  • Are we thinking 3-4%?

  • No increase. “You’re lucky to have a job, look at FAANG/Twitter layoffs. This is an employers market now!” It’s somewhat miserable, but an easy job.

  • You're absolutely going to need to provide significant increases. We fought with the board over this, got budgeted 2-3%, and have lost 20% of our most senior attorneys.

  • I was expecting a raise and an adjustment for inflation. Instead I just got an 8% “raise”.

Attorney and Associate Responses:

  • TBD. We approve rate increases annually in Q1. We are a large F500 company.

  • Clueless law firm attorney here - what “rate” are we talking here?

  • 7.7 more like 20% lol.

  • Are attorneys jumping companies? Seems silly to deny meaningful raises only to have to hire new people who will be looking for raises.



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