The Office for National Statistics says that 77% of people are worried about the cost of living crisis. It is therefore likely that many legal professionals are contemplating the idea of increasing their take-home pay to keep up with rising prices.
The legal sector has been one of the more fortunate in this regard over the last 12 months with well-publicised NQ salaries increasing by as much as 30% at top regional, national, City and US law firms. So with sound advice, the current legal market can offer plenty of opportunities to increase your salary if you know where and how to look. Therefore, the question is as a lawyer, is it better to ask for a pay rise or to find a new job?
Firstly, consider the bigger picture, assess the state of the market for your particular practice area and the size of the law firm you are considering. While there may be high demand for employment lawyers in major corporate law firms for example, other areas of law such as conveyancing in smaller high street practices may be adversely affected as the housing market begins to slow down, so it may seem untimely to ask for a pay increase.
In other legal sectors like family law and contentious probate, clients are more likely to be very careful about which law firms they choose to represent them in the current economic climate. Some clients may choose to avoid legal help and petition for divorce alone to cut extra fees they can’t afford. For no-win-no-fee firms, clients will be sure to choose the ones that are getting the best compensation settlements for their clients. According to Legal Cheek, demand for legal services was down in 2022 by 0.7%. So where does that leave you?
Although it is difficult to predict, many firms are likely to see how they fare financially before hiring new staff or giving pay rises. On the other hand, without key staff members like solicitors of all levels, paralegals and legal secretaries firms are unable to expand or meet current demand from their clients.
Is it worth asking for a pay rise?
A study showed that only 40% of working Brits have ever asked for a pay rise. Of these people, just 13% were not successful. So the odds aren’t totally against you!
Before asking for a pay rise you should take a look at your company policy guidance or employee handbook to see what the guidelines are on pay rises. For example, it may be that you’re entitled to a percentage increase based on how long you have been at the firm. It is undoubtably worth asking for a pay rise, especially if you haven’t had one in some time and the cost of living is increasing, but your salary isn’t.
Consider whether the firm is thriving or struggling to bring in new work, as this may affect your ability to secure a pay increase. You could also take a look at what the going rate for your role is on platforms such as Indeed or The Lawyer and/or ask a legal recruitment expert. If you are being paid less than the industry standard, then it may be well worth discussing it with your employer.
Adopt the mindset that if you don’t get a pay rise, you can always look for other opportunities with other firms. If you don’t want to leave your current job, take the experience of negotiating an increase as a positive, because it is a perfect opportunity to gain valuable skills like communication, negotiation and persuasion.
Remember to be specific about what you have achieved since your last pay review and the value you have added to your team and your firm. Try to show how you have exceeded your original responsibilities or gone beyond what was expected of you. Be sure to get your facts right so you can confidently argue that your current salary is not in line with the market. Get positive feedback from clients and colleagues through emails and reviews and use this as examples of your worth to the team.
Something to consider is that by asking for a pay rise, you could run the risk of lowering your financial ceiling significantly. If you’re given a small increase, you may be unable to negotiate again for some time, potentially keeping you stuck in a financial rut. But be positive and don’t think that by asking for a pay rise people will see you as being greedy. Instead, think of it as something more empowering, and that asking for more money makes you look more ambitious.
Should I find a new job instead?
The Law Society has said that in 2022, one-third of lawyers managed to get a 20% increase in pay by leaving their job. Finding a new job instead of asking for a pay rise may be the best solution since you may have more bargaining power, because the firm is actively seeking new employees. In an interview, you can demonstrate to a new employer all the experience and skills you have built up and developed throughout your career. The firms that are hiring new employees are usually those that are growing or need highly skilled people and therefore are more likely to embrace fresh ideas and potentially be more open-minded about the starting salary.
If you’re worried about spending time and effort on job applications and setting up interviews, you could use a legal recruitment agency to take that pressure away. The top legal recruitment companies have strong relationships with law firms and can negotiate on your behalf. You can tell them what your salary expectations are and have open and direct discussions about the current market and opportunities open to you.
The only downside of finding a new job over staying in your current one is that if redundancies are on the cards, it may be last in, first out. At the current time we are not however seeing this is happening in the market. Remember, starting a new job will always give you key experience that you can transfer to other firms. As long as you keep building your skills and knowledge, you’ll always be valuable to new employers. Sometimes job hopping is the best way to gain salary hikes rather than getting small percentage increments from your current employer.
What will it be?
Whether you decide to ask for an increase from your current employer or find a new job, is dependent on what stage you are at in your career and what your priorities are. For instance, you may want to remain in a job that gives you stability and security and where you have a good rapport with colleagues and clients. Alternatively, you may find that working for different employers provides you with greater diversity and a new challenge that you need by taking on higher-level targets and greater responsibilities.
If we can assist you and you might appreciate a no obligations discussion, please get in touch with one of your dedicated consultants,
https://www.chadwicknott.co.uk/contact/our-offices
