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Quarter 3 Overview
Despite the summer season, hiring levels definitely increased during Q3 and within the UK and continental European professional services market, there was a clear increase in vacancies. In line with the wider economic outlook, there is certainly more optimism in the market. Typically, outside of Newly Qualified (NQ), this quarter is often notably quieter owing to the summer period, but this year has bucked the trend.
The busiest areas across Europe have been within the Competition markets. Whereas previously this activity had been isolated to specific locations such as Brussels, during the last quarter we have seen this trend across almost all regions.
Another trend we saw during Q3 was the sharp increase within the corporate finance market, something that happened more quickly than expected. At the beginning of 2023, it was anticipated that this wouldn’t kick in until Q4, but firms seem to have seen an increased workflow earlier in the year. Salary levels have remained consistent and without huge increases, with most firms having already conducted their pay reviews for the year.
Forecast for Quarter 4 2023
Looking ahead, we are expecting to see hiring levels increase further in Q4. Many firms experienced a challenging start to the year but are now beginning to see an uptick in workflow. This in turn is creating a renewed confidence to hire in certain areas, such as Competition, Employment, Financial Regulations, and Private Equity.
In an ever more competitive market, salaries are only going to continue to rise. In contrast to before the pandemic, some firms have increased pay multiple times in a year to ensure they remain competitive. As an example, Weil, Gotshal & Manges enhanced NQ pay twice in the last 12 months to keep up with other large US firms.
An interesting trend emerging in Q4 is likely to be employers’ desire to hire immediately heading into bonus season. Pre-Covid, it was far less common to see firms matching bonus payments, however, this changed owing to the dire need in the last few years. It will certainly be interesting to see what approach firms will take in a market that is ‘normalising.’
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Quarter 3 Overview
Despite the summer season, hiring levels definitely increased during Q3 and within the UK and continental European professional services market, there was a clear increase in vacancies. In line with the wider economic outlook, there is certainly more optimism in the market. Typically, outside of Newly Qualified (NQ), this quarter is often notably quieter owing to the summer period, but this year has bucked the trend.
The busiest areas across Europe have been within the Competition markets. Whereas previously this activity had been isolated to specific locations such as Brussels, during the last quarter we have seen this trend across almost all regions.
Another trend we saw during Q3 was the sharp increase within the corporate finance market, something that happened more quickly than expected. At the beginning of 2023, it was anticipated that this wouldn’t kick in until Q4, but firms seem to have seen an increased workflow earlier in the year. Salary levels have remained consistent and without huge increases, with most firms having already conducted their pay reviews for the year.
Forecast for Quarter 4 2023
Looking ahead, we are expecting to see hiring levels increase further in Q4. Many firms experienced a challenging start to the year but are now beginning to see an uptick in workflow. This in turn is creating a renewed confidence to hire in certain areas, such as Competition, Employment, Financial Regulations, and Private Equity.
In an ever more competitive market, salaries are only going to continue to rise. In contrast to before the pandemic, some firms have increased pay multiple times in a year to ensure they remain competitive. As an example, Weil, Gotshal & Manges enhanced NQ pay twice in the last 12 months to keep up with other large US firms.
An interesting trend emerging in Q4 is likely to be employers’ desire to hire immediately heading into bonus season. Pre-Covid, it was far less common to see firms matching bonus payments, however, this changed owing to the dire need in the last few years. It will certainly be interesting to see what approach firms will take in a market that is ‘normalising.’
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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 |
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