October has well and truly arrived - the dark cold mornings and short evenings have returned, as have our winter coats and warm boots. The festive season is just around the corner but the topic on everyone’s lips is the cost-of-living crisis - the term currently littering our news feeds.
The Office of National Statistics has stated that around 3 in 4 adults have reported feeling worried about the rise in the cost of living this year. It has been said that 24 million people in the UK are reducing home energy use and around 16 million have cut back on food essentials in preparation for a tough winter period. Around 9 in 10 adults report that their cost of living has risen, 94% of people reported an increase in the price of food shop, 82% reported an increase in energy bills and 77% reported an increase in the price of fuel. Rocketing energy bills appear to be the main driver behind the rise of living costs and the latest Government announcement on the new Energy Price Guarantee ensuring that no typical household energy bill would exceed £2,500 per year, will now finish in April 2023.
So, is it all doom and gloom? What does this mean for any lawyers looking for their first NQ role or senior lawyers looking to make a career move right now?
In summary it is not all bad news in the legal world – there are seriously good opportunities for lawyers looking to move either for career progression and/or for lawyers looking for a salary increase to help in these times of rising costs and inflation.
Below, I have outlined the latest marketing conditions and factors for you to consider if interested in exploring the legal job market.
Salaries
There is a definite increase in movement within the legal industry based on salary considerations. Although individuals may be happy in their roles, some are actively looking for new opportunities purely due to financial pressures.
Salaries have been rising across the legal sector due to demand for experienced legal professionals and talented newly qualified solicitors. In turn many firms have increased their salaries in order to compete. We have recently seen regional NQ salaries as high as £81,000 and NQ salaries in London hit a record high of £164,000.
Established law firms are being more flexible and moving away from strict salary bandings in the interests of obtaining the right person for the role. Some firms have also been offering sign on bonuses at the more experienced levels.
New areas of practice
Law firms are open to meeting with experienced lawyers with specialist areas of knowledge that complement their current offerings. For example, in my SW region we have been involved in a hire into a Tier 1 Real Estate team of an individual with specialist Real Estate Finance experience, an area the team had not before specialised in. Another example is that a number of firms have been interested in Data Protection specialists who are able to provide DPO functions.
Overall, there has also been a rise in non-conventional legal roles. Professional Support Lawyer opportunities have risen. This type of role is usually something that is more common in London, but regional and national firms are becoming more open to these. PSL roles focus on efficiency, providing technical legal guidance as well as mentorship to the team. They can involve fee earning or can be purely PSL. These roles are becoming more popular due to law firms valuing the importance of efficiency. My colleague Jennifer Wellspeak specialises in PSL roles and has recently written a fantastic explanatory article on PSL opportunities.
In addition, firms seem to be more open to solicitors retraining into different practice areas. For example, I have recently worked with a Personal Injury Solicitor who was looking to move out of this sector due to reforms. In light of their strong transferable skills, this solicitor will now be joining a professional indemnity team to retrain. Have you been thinking about retraining but don’t have direct experience in an area of law? Now could be your chance to explore a change of discipline.
Relocation
With the cost of living being historically high within London, we are seeing legal professionals moving away from the busy City lifestyle and into more rural locations. There are a number of regional firms who deal with City quality work outside of London and have raised their salaries to a very competitive level. For example, Trowers & Hamlins boast a number of Legal 500 tier 1 departments and have announced that their Exeter NQ rate has been increased to £60,000. With the lower cost of living in regional areas, legal professionals are swapping out fast paced City life to enjoy a better work life balance which could allow logging off by 5.30pm and walking along the sea front by 6pm. Are you dreaming of life in the countryside or by the sea – if so, 2023 could be the year to make it happen!
Ensuring security
In 2023 law firms will be discussing work streams and evaluating their priorities to ensure their teams can continue to thrive. For example, I have recently been working with a market-leading insurance firm who have just re-signed contractual terms with their large key insurer clients for the next 3 years to ensure that they have secure work streams for the foreseeable future.
Throughout financially turbulent times law firms with strong client relationships and established reputations have continued to grow and develop, leading to further growth in employee numbers and as a result have created employment opportunities. For example, during the pandemic the UK Top 100 Law Firm Bevan Brittan LLP reported a double-digit growth in both revenue and profit for the financial year of 2019/2020. Firms will be working hard to maintain revenue and despite the current economic climate, this is not impossible.
City firms like Clifford Chance have announced that they will be providing their employees with a one-off payment of £1500 to cover the rising cost of living as well as other regional firms offering lump sums to assist employees. This may be an approach that more firms adopt in the coming months.
In conclusion
The cost-of-living crisis is a worrying time for all, but this should not come between you and your career aspirations. The legal recruitment market will continue to move, there will always be requirements for legal professionals and law firms will continue to grow based on their solid client relationships, reputation and high-quality legal advice.
This is a good time to think about moving if you feel you are being underpaid in your current role, looking for more flexibility, aiming to specialise in a niche area or are considering relocating.
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
