Hays Legal - January 2010

Hotspots

During the last quarter of 2009 firms recruited in preparation for 2010 workloads. This was a promising sign of the year ahead, and should continue into this quarter. We have also seen an increase in in-house appointments as companies rebuild their legal functions to manage the increasing workflow. Hotspots of demand exist as follows.

Corporate: We have seen an increase in corporate vacancies as confidence returns to the market. This is most obvious at the senior level but is starting to flow down to junior roles. Mid-tier firms in particular are looking for senior lawyers and Partners who can help increase their client base and subsequently gain market share.

Banking & Finance: Opportunities within the banking and finance sectors have started to increase, particularly in Sydney. This has been driven largely by transactions with major corporate and syndicated lending forming a large part of many positions. We expect Project Finance to be another busy area as more resources and infrastructure projects take off.

Property: A high volume of property roles have recently become available in both private practice and in-house teams following a period of minimal activity. As the property market begins to shift out of the bottom of the cycle, a greater appetite for investment and a belief that good value real estate is still available are prompting this demand.

Insurance: There is continued demand for good Insurance Lawyers after the downturn gave rise to increased work injury damages. Professional liability claims have also risen as investors and shareholders look to find culpability and recoup losses. This increase in the volume of claims will sustain demand for good lawyers in this area despite the change in market conditions.

With an improving market we are beginning to see some areas of skill shortage again return. This includes those areas which have remained consistently in demand during 2009, such as Insurance, Employment Law and Workplace Relations. It is also beginning to apply to areas which have experienced a recent upturn, such as Banking & Finance and Property.

The coming quarter

While employers are on the road to recovery, the flow-through to increased legal vacancy activity may not be evident until later in the year. However it is worth noting that more companies are starting to look at their headcount and identify areas where they will need additional permanent staff.

In the meantime, employers' use of temporary assignments will remain at current levels.

Employer trends

Employers recruiting in areas of law that remain candidate-short need to remain competitive to secure the right person. This means reducing their interview to offer timeframe, with some employers conducting comprehensive one-stage interviews. Others have to offer competitive salaries to secure the right candidate and some instances of counter offers have even taken place.

Having said this, there are still areas of law that are candidate rich and will remain so into early 2010. These roles tend to attract high numbers of responses. Graduates and entry-level roles are the most obvious examples.

Good academics are a must for most firms. When a firm identifies a high-level candidate, they will move swiftly to secure such skills, often without there actually being a role available.

Candidate trends

There has been a clear decrease in immediately available candidates, particularly those that were part of the retrenchment cycle across the firms. However an increasing number of applicants that stayed with their employer during the peak of the GFC are now entering the job market in search of a change of environment or work, or for career progression. Many of these candidates are passive job seekers, waiting for the ideal role to become available.