Hays Legal - July 2007
Hotspots
Banking and finance, construction and major projects lawyers are required due to the drainage of talent overseas. These candidates can receive significant salary incentives overseas and experience in an overseas market is valued.
In addition, corporate lawyers are in demand while resource-rich states are experiencing demand for energy & resources and mining law lawyers, particularly at the two to five years PAE level. Property lawyers with between two to five years PAE are required in light of the high demand for commercial rental property and continued high demand for residential property while corporate lawyers are a hotspot due to continued economic growth.
In a regional trend, property, planning and environment are major hotpots in Queensland due to the property boom and significant number of major projects and public works currently underway across Brisbane, the Sunshine Coast and the Gold Coast in residential, commercial and major projects.
The coming quarter
Following the seasonal drop in activity over the financial year-end period, we expect an increase in the number of vacancies and the speed of the recruitment process. Firms have assessed their recruitment budgets for the financial year ahead and are aware that candidate movement is higher in the first quarter of the new financial year following mid-year salary reviews.
With the resources boom expected to continue well into the future, activity will continue to be exceptionally high for additional lawyers for firms in Western Australia and Queensland.
Executive
While lawyers at the two to five years PAE level are in highest demand, there remains a market for executive lawyers at the senior associate and partnership levels. Demand has been highest in corporate, property, energy and resources and mining areas while construction lawyers and employment lawyers remain hotspots.
Salaries
The 2007 Hays Salary Survey has been released and reveals that over the past 12 months salary rates have levelled across Australia, with Melbourne, Perth and Brisbane in particular falling increasingly inline with Sydney salaries. This is not to say Sydney salaries did not move; there was a steady increase across skill sets, particularly for general counsel and banking and finance lawyers.
Perth lawyers were the main salary beneficiaries overall. With salaries traditionally lower than their Eastern state counterparts, employers have been forced to compete for candidates, which has driven up salaries, particularly for small practices which now offer typical salaries above Sydney rates.
With firms recruiting more aggressively, many offered a sign-on bonus to secure candidates. The figure depends on local trends, with some Australian firms offering up to $20,000 and New Zealand firms up to $5,000. While higher salaries are offered initially to attract lawyers, it is often with the condition that a salary review will not occur until the following financial year.
The Hays Salary Survey is available at www.hays.com.au/salary
Candidate trends
Candidate movement will increase over the coming quarter following mid-year salary reviews and a regular trend is junior lawyers from small firms moving for better conditions in larger practices. We have also seen significant movements to Queensland from lawyers who seek a lifestyle change and to Western Australia to capitalise on the mining boom.
In general the market remains candidate short, with the previously identified hotspots the tightest areas for quality candidate availability.
