Hays Legal - January 2008
Hotspots
The legal market is still experiencing a candidate shortage across the board, which is likely to continue for at least the next twelve months. As far as recruitment 'hotspots' are concerned, there are several key areas of demand:
Within Private Practice, candidates at senior associate level are in demand across all practice areas, particularly banking & finance, corporate M&A and property. Local firms are sourcing candidates from the UK and New Zealand, and also looking at Canada, Ireland, Malaysia, South Africa and Hong Kong candidates, offering them sponsorship, relocation and top salaries in order to attract the skills they need. Those with between two to six years experience are in most demand.
Property lawyers are in particular demand in light of the property boom and the significant number of major projects and public works. The huge demand for lawyers with property law experience has seen fierce competition from competing firms/organisations, sometimes resulting in a 'bidding war' for top candidates.
Demand also exists for candidates with taxation law experience, both direct and indirect. Firms will consider candidates from a large accounting practice, not just a law firm, for these roles. Meanwhile lawyers with banking and finance experience are highly sought after and these candidates typically have various options to consider.
Demand for Australian lawyers overseas, such as in the London, New York and Dubai markets, is accentuating the local skills shortage. Overseas firms are offering high salaries and exposure to top deals and clients to attract Australian lawyers, which is a major contributor to the shortage of lawyers locally at the two to five year PAE level, particularly corporate and banking lawyers.
The coming quarter
Vacancy activity remains consistent within law firms, which are hiring in virtually all practice areas and are actively seeking experienced candidates at Restricted Practitioner, Solicitor and Senior Associate Level. We expect a gradual increase in activity over the coming quarter, with February and March 2008 expected to be particularly busy due to consistent demand in corporate, property, taxation and banking and finance.
Executive recruitment
Despite reluctance by some firms to recruit externally for partner level roles (preferring instead to promote existing Senior Associates), Partner level recruitment remains busy and as testament there has been a large shift of Partners between competing firms over the last quarter.
Senior lawyers with five years PAE and above are experiencing higher demand than junior lawyers. The attractiveness of in-house and government roles continue to increase as candidates seek more reasonable working hours and an increased work/life balance.
Salaries
High demand for lawyers across all practice areas is ensuring salaries continue to rise gradually, and sign-on bonuses are becoming more common.
Many employers have become willing to consider the need to compete with the overseas market and are consequently increasing candidate offer packages.
Overall salaries between the states have moved a lot closer, with Brisbane and Perth salaries increasingly inline with Sydney and Melbourne rates.
Candidate trends
The shortage of candidates with medium to strong academic results and solid experience remains.
Staff development programs are highly valued by candidates and employers are discussing their programs at first and second interview stage to help candidates distinguish between multiple employers. Study support remains a constant benefit, with programs so similar across the major firms that little advantage can be gained by their promotion.
Overall, the trend remains one of high demand of experienced candidates. New graduates will commence with firms in late January through to early February in 2008, which may place a short hold on intermediate hiring. However, the senior end of the market will remain extremely busy, and 2008 will see a continued candidate short environment.
