In the 1956 Grand National, Devon Loch, the Queen Mother’s horse, ridden by later-to-be-author, Dick Francis, inexplicable belly flopped on the run-in to the winning post; an event that bears comparison to the collapse of the legal market recruitment market in 2009.
In both cases, those at the reins were completely floored by the unexpected. Unprepared, firms were forced to make wholesale redundancies and, in some cases, “cut into the bone” as one partner at a major national firm observed.
Fast-forward 3 years and with the Eurozone in crisis and talk of a double dip recession, is it a case of déjà-vu?
With a large number of the loans taken out in the boom years falling due for repayment next year, there can be little doubt that next year will be full of uncertainties but, amid these uncertainties, the outlook for the legal recruitment market is far from bleak.
Almost all firms are leaner; many are now better equipped to weather the storm and some are in positively rude health, with the latter group marked out by strong management, a clear strategy and an ability to adapt to a changing and increasingly competitive market.
Against the backdrop of the Legal Services Act, the advent of Alternative Business Structures (ABS), increased regulation, market consolidation, pressure on costs and the march of globalisation, it is the firms who are able to adapt and present a clear and compelling business statement to candidates and clients alike who are likely to succeed.
With so many factors influencing the legal market, it is no wonder that there is no single template for success as is illustrated by a quick run down of some of the high achievers of 2011. Stewarts Law, Stephenson Harwood, Irwin Mitchell, Clyde & Co, Parabis and Mishcon de Reya to name a few.
So what does this all mean for the recruitment market of 2012?
Well, the annus horriblis of 2009 has ensured that lawyers with c. 3 years’ PQE are in high demand and short supply – especially those in transactional practice areas. Also in high demand are specialist litigators but particularly those with FS/banking, fraud, patent, technology, insurance and regulatory expertise. In fact an increasingly regulated society means that regulatory specialists, especially those with experience in the financial services and insurance sectors, are highly prized.
The continuing march of technology that has helped shape the success of firms like Bird & Bird and Bristows means that lawyers with strong IT, data protection and technologies experience (including life sciences) are also well placed to benefit. While the importance of the global energy market will maintain the need for good energy lawyers - both traditional oil and gas, as well as renewables. Elsewhere, discrete pockets of expertise such as real estate finance and off-shores tax and trusts remain buoyant.
In truth however, as alluded to above, there is a steady demand for lawyers across almost all practice areas but while some real estate departments, for example, are extremely busy, others continue to struggle and the same is true of some corporate and banking teams.
So while recruitment activity is being shaped by a common need for lawyers in certain practice areas, to a greater extent, it is being shaped by the success/ambition/strategic vision of certain firms and where we can help is identify those firms to back.
Like the Grand National, 2012 has the potential to be a bumpy ride. It is unlikely to be without incident but will produce some more success stories and hopefully our understanding of the market will help you back a winner.
For more advise please contact the London team
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