Hays Legal - April 2007

New Zealand

Hotspots

  • Private practice law firms require mid level finance, corporate and specialist area commercial lawyers, while to a lesser extent commercial litigators and property lawyers are also in demand.
  • Tax lawyers are a major hotspot.
  • A boom in the domestic oil and gas industry has resulted in a spike in demand for lawyers with energy experience.
  • In-house lawyers.
  • The public sector requires lawyers due to the impact of new legislation and regulation.

The coming quarter

Most New Zealand mid level lawyers in commercial disciplines have a good understanding of their value in the market and know they have a large number of options if they are looking for a change. The recruitment process will move swiftly for such candidates and they should be prepared for a number of offers and the concerted efforts of their existing employers to buy them back. In other areas the odds are stacked in the employer's favour, including graduate level roles and in house positions at the mid to senior level. Candidates keen to secure roles in these fields need to show flexibility regarding their preferred location and should not expect to match private practice level salaries, although a number of in-house roles and a very small handful of public sector positions get close.

Salaries

Despite the strong demand for lawyers there have not been marked salary increases - the changes have been subtler. The bands with some of the larger private practice firms have been stretched in order to help retain and attract high performers in skill short areas. There has been a notable increase in the use of incentives in both private practice and in-house sectors, to help secure new recruits. The most common is sign-on bonuses and relocation allowances, which can be substantial when moving or returning from overseas.

Candidate trends

The continued exodus of New Zealand lawyers overseas exacerbates the overall skill shortage. Attracted by the premium salaries, the opportunity to travel and the chance to gain experience in a larger market, the increasingly direct efforts of UK and Australian headhunters are often successful.

Other trends

It is no surprise that firms with succinct recruitment process are the winners in the current market. In addition to swift feedback on applications, a number of firms have been condensing the interview process and making decisions shortly after interview. There is an increased emphasis in the interview process on the softer elements of working life, such as work/life balance and the support offered. In many cases the HR professionals of law firms have been heavily involved in this marketing of the full offering of the firm, rather than just the work on offer. The last year has also seen an increased interest in overseas qualified lawyers, especially from the UK, with a number of larger firms realising that these candidate have a lot to offer and can get up to speed swiftly due to the similarity of the legal systems.