26 Sep Private Practice Update
PRACTICE AREA HOT SPOTS
Towards the end of last quarter we saw Corporate practices roaring back to life, with lawyers at mid and senior levels being sought after by most major national and international firms, initially in Sydney, however, other cities have started to follow suit. By contrast, the need for litigators simmered down considerably, with the two exceptions of those operating at the very top end of town, or with a Restructuring and Insolvency (R&I) skill set. This was largely reflective of R&I activity rising to at an all-time high since before the Covid pandemic. Energy, Construction and Insurance (particularly professional indemnity) practices have remained as busy as ever recruitment-wise, presenting a challenge to most firms as local talent in these areas is few and far between.
CONTRACTING ON THE RISE
As law firms continue to face increasing demands from clients and rising workflows, we have noticed a growing appetite for contractors in the private practice space. Our very own specialist contracting arm, Montgomery Edge, have taken on various engagements across a range of law firms requiring lawyers on short notice to address their immediate needs and alleviate short term pressures, including requests for client secondments. Examples include an initial 3-month contract commercial litigation lawyer for a mid-tier firm, a 12-month contract commercial litigator within a specialist boutique firm and various commercial and technology contractors for top tier firms. Other practice areas where we have seen an increase in need include Employment, Public and Administrative, Commercial, Construction, and Projects.
MONEY TALK
The topic on everyone’s lips at the end of last quarter was, unsurprisingly, salaries. With most firms completing their reviews throughout June and July (save for a few who are still currently in the process), anticipation levels were high for lawyers and recruiters alike. What has emerged from our discussions is that lawyers at the 3 year mark and those moving up to SA 1 level enjoyed the most salary growth. Indeed some jaw dropping figures emerged from certain leading Australian firms and international teams seeking to “out bid” their traditional top tier competitors. Leading mid-tier and boutique firms have equally set their salary benchmarks higher than ever in some practice areas/levels, and in some instances inching very close to those at the top. On the other hand, some of the most prestigious firms in the market sought to smooth out salary growth in FY24/25 off the back of lofty increases over the past two financial years. It seems for the most part that this approach has been sufficient to keep their lawyers from jumping firms locally, however not quite enough to stop them from moving across the world with a growing number of lawyers moving to the likes of London, Dubai and New York in recent months.
