2017 Legal Industry Market Update: Lawyers

As the first half of the year draws to a close, we have been busy at Legal People! We thought we'd share with you some insights, based on our observations & analysis, into the current recruiting trends.

2017 Market Trends: Lawyers

Recruitment activity has been very strong. There has however been a shift in demand from 2016, into different areas of specialisation.

So, what’s hot in 2017?

So, what’s hot in 2017?

Our clients have generally indicated they've had a solid financial year and remain positive about the year ahead. We have observed less redundancies this financial year as compared to a few years back, and we are also hearing of higher retention rates of graduate lawyers, post-admission.

The first half of 2017 has been a candidate tight market!, particuarly in the high demand areas mentioned above. So much so that it is common for many candidates to be considering simultaneous job opportunities.

So what are candidates asking for?

Flexibility

More and more we are seeing candidates wanting to work flexible hours. Happily, we are also seeing more firms being able to accommodate flexible working arrangements.

Information

Candidates are after lots of detail in relation to the hiring firm/company so they can make informed decisions.

They want to have a good understanding of company culture, team structure, career opportunities and progression. They want to know why the role has become available and what the employee retention rate is like within the team/firm. They want to understand the Partner(s) working and communication style. They are also researching firms online and via social media channels prior to making their decision to apply for a role.

Money

Whilst this is always a consideration for any candidate exploring a new job opportunity, we have seen an increase in the use of ‘sign-on’ bonuses, particularly in areas of high demand and where this is a skills shortage. We are also having candidates request an early salary review as part of their employment offer/contract, particuarly if they have not been employed long enough to qualify for a salary review in June/July.

Localised Decision Making

Some candidates are shying away from large or merged global firms. They are keen to work for firms that have their decision-making process controlled locally.

What’s motivating candidates?

More than ever we are seeing the forces that motivate candidates changing. It’s not just all about money, ie. salary and bonuses! Current motivating factors include:

2017 Salary Trends

Salary bandings for Lawyers have not changed significantly over the past few years. We have experienced a record low wages growth rate for the legal profession of just 1%!

The ALPMA survey suggests that 50% of Australian law firms will give pay rises this year above the CPI and 27% will increase salaries in line with CPI.

Boutique firms are becoming very competitive in relation to salaries, with attractive and achievable bonus arrangements. This combined with their speed to market is giving them an advantage in attracting talent.

Performance based bonus payments are a regular occurrence in the industry. Many firms are paying 5% of base remuneration in regard to this.

Salary bands have been higher in plaintiff firms than they are for defendant firms – especially in the first few years of post-admission experience (PAE).

If you would like more information around current market salaries for Lawyers - reach out to us! You can also compare your salary via our live salary update website, Legal Salary.

If you are looking for a new role in the Legal Industry in Melbourne, Australia, then get in touch with us. We are specialists in the Legal Industry and recruit Lawyers, Support staff and HR professionals. If you enjoyed reading this article, you can follow our Company Page on LinkedIn for regular updates. These are specific to the Melbourne Legal Industry and career advice for legal professionals.