Q2 Overview
In quarter two, we saw hiring levels increase considerably with a notable 35% rise in vacancies released by firms. This uptick reflects a growing demand for legal professionals across various sectors.
Key Trends and Market Factors
A significant trend in Q2 was the heightened demand for senior legal professionals. Vacancies for senior associates, counsels, and partners continued to increase while the junior associate market remained less active. Firms are prioritising individuals who can manage matters independently or drive new business, focusing on experienced professionals to handle high-value cases and clients effectively.
Busiest Industries
Certain markets experienced significant growth in Q2, particularly in Corporate, Tax, Employment, Investment Funds, Leveraged Finance, and Mergers & Acquisitions. These areas are thriving due to increased transactional activities and regulatory changes that drive the need for specialised legal expertise.
In-Demand Skill Sets
Proficiency in legal technology, such as AI, e-discovery, and blockchain, has become crucial. Firms are seeking solicitors and staff who can integrate these technologies to enhance efficiency and client service. Additionally, there is a demand for professionals with extensive matter handling experience to offset the reduced number of senior associates, a gap resulting from lower qualification rates during the Brexit period.
Salary Trends
While significant salary changes were not broadly implemented in Q2, the Newly Qualified (NQ) segment saw notable adjustments. For example, Quinn Emanuel raised NQ salaries to £183,000, and Magic Circle firms such as Slaughter and May adjusted NQ salaries to £150,000.
Forecast for Q3 2024
We anticipate increased hiring activity in Q3 2024, particularly in transactional legal markets such as M&A, leveraged buyouts, and private equity deals. This optimism is driven by decreasing inflation rates, positive macroeconomic trends, and the expectation of interest rate cuts. This will also benefit related areas like Competition (Merger Control), Employment, and Tax.
Most In-Demand Professionals and Skills
Professionals with strong client management capabilities and a solid technical skillset, particularly those with 3-7 years’ experience in litigation, including civil class action and commercial litigation, will be in high demand. Corporate legal departments and small to mid-sized firms are especially keen on hiring these specialists.
Active Hiring Industries
Industries experiencing high transactional activities, such as corporate tax, employment law, investment funds, and M&A, will continue to be the most active in hiring.
Salary Expectations
Salaries are expected to continue their upward trend. NQ salaries have already seen significant increases, and more firms are likely to release information on their internal salary reviews, particularly in the latter half of the year.
Challenges for Candidates
For junior associates, the main challenge will be the intense competition for unique and high-exposure positions that offer progression opportunities. For more experienced professionals, the challenge lies in ensuring that they are not entering overly competitive or congested environments where partnership opportunities might be limited due to preferential treatment of lateral hires.
Challenges for Employers
Employers will face intense competition for top talent. The market is highly competitive, and we are seeing the return of strong incentives for new hires, such as honouring bonuses or offering sign-on incentives.
Key Takeaway for Q3 2024
The key message for Q3 2024 is that the legal hiring market is robust and growing, particularly for experienced professionals and those with specialised technical skills. Firms must be strategic and competitive in their hiring approaches to attract and retain top talent in a rapidly evolving market.
[/fusion_text][fusion_text columns=”1″ animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility” sticky_display=”normal,sticky” column_spacing=”150″]Q2 Overview
In quarter two, we saw hiring levels increase considerably with a notable 35% rise in vacancies released by firms. This uptick reflects a growing demand for legal professionals across various sectors.
Key Trends and Market Factors
A significant trend in Q2 was the heightened demand for senior legal professionals. Vacancies for senior associates, counsels, and partners continued to increase while the junior associate market remained less active. Firms are prioritising individuals who can manage matters independently or drive new business, focusing on experienced professionals to handle high-value cases and clients effectively.
Busiest Industries
Certain markets experienced significant growth in Q2, particularly in Corporate, Tax, Employment, Investment Funds, Leveraged Finance, and Mergers & Acquisitions. These areas are thriving due to increased transactional activities and regulatory changes that drive the need for specialised legal expertise.
In-Demand Skill Sets
Proficiency in legal technology, such as AI, e-discovery, and blockchain, has become crucial. Firms are seeking solicitors and staff who can integrate these technologies to enhance efficiency and client service. Additionally, there is a demand for professionals with extensive matter handling experience to offset the reduced number of senior associates, a gap resulting from lower qualification rates during the Brexit period.
Salary Trends
While significant salary changes were not broadly implemented in Q2, the Newly Qualified (NQ) segment saw notable adjustments. For example, Quinn Emanuel raised NQ salaries to £183,000, and Magic Circle firms such as Slaughter and May adjusted NQ salaries to £150,000.
Key Takeaway
The key takeaway from Q2 is the growing demand for senior legal professionals and the increasing importance of legal technology skills. Firms are strategically focusing on experienced hires to navigate complex legal landscapes and drive business growth.
Forecast for Q3 2024
We anticipate increased hiring activity in Q3 2024, particularly in transactional legal markets such as M&A, leveraged buyouts, and private equity deals. This optimism is driven by decreasing inflation rates, positive macroeconomic trends, and the expectation of interest rate cuts. This will also benefit related areas like Competition (Merger Control), Employment, and Tax.
Most In-Demand Professionals and Skills
Professionals with strong client management capabilities and a solid technical skillset, particularly those with 3-7 years’ experience in litigation, including civil class action and commercial litigation, will be in high demand. Corporate legal departments and small to mid-sized firms are especially keen on hiring these specialists.
Active Hiring Industries
Industries experiencing high transactional activities, such as corporate tax, employment law, investment funds, and M&A, will continue to be the most active in hiring.
Salary Expectations
Salaries are expected to continue their upward trend. NQ salaries have already seen significant increases, and more firms are likely to release information on their internal salary reviews, particularly in the latter half of the year.
Challenges for Candidates
For junior associates, the main challenge will be the intense competition for unique and high-exposure positions that offer progression opportunities. For more experienced professionals, the challenge lies in ensuring that they are not entering overly competitive or congested environments where partnership opportunities might be limited due to preferential treatment of lateral hires.
Challenges for Employers
Employers will face intense competition for top talent. The market is highly competitive, and we are seeing the return of strong incentives for new hires, such as honouring bonuses or offering sign-on incentives.
Key Takeaway for Q3 2024
The key message for Q3 2024 is that the legal hiring market is robust and growing, particularly for experienced professionals and those with specialised technical skills. Firms must be strategic and competitive in their hiring approaches to attract and retain top talent in a rapidly evolving market.
[/fusion_text][fusion_text animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”large-visibility” sticky_display=”normal,sticky”]Salaries
UK London Permanent Salary Per Annum £
| Role | |
|---|---|
| NQ | £75k – £110k |
| 1 yr PQE | £80k – £120k |
| 2 yrs’ PQE | £85k – £130k |
| 3 yrs’ PQE | £90k – £138k |
| 4 yrs’ PQE | £95k – £140k |
| 5 yrs’ PQE | £100k – £150k |
| 6 yrs’ PQE | £100k – £160k |
| 7 yrs’ PQE | £120k – £170k |
| 8 yrs’ PQE | £130k – £200k |
US Firms (Cravath) Permanent Salary Per Annum
| Class | Salary | Bonus | Total |
|---|---|---|---|
| 22/23 – 1st Year | $215k | $20k | $235k |
| 2021 – 2nd Year | $225k | $30k | $255k |
| 2020 – 3rd Year | $250k | $57.5k | $307k |
| 2019 – 4th Year | $295k | $75k | $370k |
| 2018 – 5th Year | $345k | $90k | $435k |
| 2017 – 6th Year | $470k | $105k | $475k |
| 2016 – 7th Year | $400k | $115k | $515k |
| 2015 – 8th Year | $415k | $115k | $530k |
| Class | Salary | Bonus | Total |
|---|---|---|---|
| 22/23 – 1st Year | £162k | £15k | £177k |
| 2021 – 2nd Year | £170k | £23k | £193k |
| 2020 – 3rd Year | £190k | £44.5k | £234k |
| 2019 – 4th Year | £222k | £58k | £280k |
| 2018 – 5th Year | £261k | £69k | £330k |
| 2017 – 6th Year | £280k | £81k | £361k |
| 2016 – 7th Year | £303k | £88k | £391k |
| 2015 – 8th Year | £315k | £88k | £403k |