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James Pritchard

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Salary Review: Reflections of the National Picture

With the salaries being offered to junior lawyers increasing at break-neck speed, we thought it was time to offer a snapshot of how things are evolving on a national level.

Our recent analysis on ‘The Battle for Talent’ highlighted the scarcely believable rate of wage growth at the very top end of the market, and considered what was fuelling such growth, but it’s important to understand how these same factors are affecting every corner of the legal sector.

Top of the Market

It may be that the last you heard in news of record-setting NQ salaries, is that Milbank had upped its London NQ solicitor pay to $215k (just under £160,000), which the firm announced in late January. However, with the ink barely dry on Milbank’s press-release, Boston-headquartered Goodwin Procter announced that they were bumping their NQ salary by 10% from £147,000 to £161,500.

Plenty more US firms have since joined the fray, with several offering double digit salary hikes into the £140k+ bracket.

Where does this leave the Magic Circle?

All bar one of the magic circle firms currently pay their NQs a salary of £107,500, ­with Freshfields lagging behind on £100k.

When considering the enormous salaries on offer at US firms, it may seem that these heavyweights are being somewhat unresponsive, but that would be ignoring the fact that Slaughter and May, for example, increased their NQ salary three times in 2021; having started the year by reinstating an NQ salary of £90,500, the firm bumped it up to £100k in July, before doubling down in December to the current figure. That’s an almost a 20% increase in annual salary in an eleven-month period!

Will the magic circle need to look again at their NQ salaries in order to counter the advances made by their US rivals?

In addition, they may also need to consider the narrowed salary gap between them and other top tier City firms. Silver circle outfits like Macfarlanes, currently match Freshfields with £100k salaries, while Herbert Smith Freehills is edging even closer to the magic circle at £105k.

These figures might lead junior lawyers to question: if not for prestige, why would I work for a magic circle firm when I can take home as much—if not more—while achieving a better work/life balance in the silver circle?

With further rises expected at the top end of the market, Sir Nigel Knowles has expressed concern for a bubble-burst moment with salary inflation, but the fact of the matter is that not many individuals are actually receiving this salary. As much as headlines like to amp it up, it’s unlikely for your average lawyer to see anything as drastic as his.

Regional Firms:

While the salary war that’s currently being waged by elite US law firms affects only a tiny proportion of junior lawyers, it would be wrong to assume that these increases and, importantly, the trade winds behind these increases do not affect NQs right across the country. Indeed, the notion that the London legal market is its own insulated bubble detached from the sector has been dispelled by recent regional advances.

DLA Piper’s recently announced increases have been felt much more in the regions rather than the City. What was an 8% rise (to £95k) in salary for their London-based NQs, was a gigantic 35% increase for NQs working out of the firm’s Sheffield, Liverpool, and Birmingham offices (£48k to a very attractive £65k).

Late last year, Addleshaw Goddard announced that it was increasing regional NQ pay by 11% across the board, which trumped the 9% pay rise offered to its London-based NQs.

On the flipside, however, is Clyde & Co which announced a whopping 14% pay rise for its London-based NQs without hinting at any increases in the offing for those working at the firm’s eight regional offices.

The Market as a Whole:

The important thing to remember is that the trickle-down of salary escalation is inescapable for all firms. First, when it comes to attracting new recruits, there is the increased competition of large law firms fishing in new waters, which increases competition for medium-sized firms and so on.

Secondly, the Covid pandemic has removed a degree of comfort that regional firms felt from a geographical perspective. With the massive uptake of working from home, the competitive insularity that regional firms had with a lack of local rivals—due to their geographical location—is gone, as people can work for almost anyone anywhere.

The pressures of competition are already being felt at the time of writing. We spoke to a recruitment manager at a medium-sized firm in the South-East who explained that the rise in salary from bigger names in the area was killing their recruitment prospects, as on several occasions, a few weeks after they thought they’d netted a new recruit, the candidate would renege on the offer and join a larger regional firm.

Finally, even if a law firm remains unaffected by either the encroachment of larger firms or the removal of geographical barriers, they will struggle to escape the upward salary pressure exerted by an inflation rate of 6%+.

In summary, no law firm can be entirely immune to the battle for talent’s trifecta. Whether it is the salary trickle down, apex firms encroaching into regional spaces, or the heights of salary dogfighting in London, the effects of inflation are unavoidable. Even firms that have held a safe spot for the longest time are facing pressure due to Covid’s restructuring of work culture, and are now facing down increased levels of competition, in an escalation which seems inescapable.

Overall—at least for NQs and junior lawyers—things are looking good in the salary game right now. However, while the economic rises are enticing, there is something to be found in Sir Nigel Knowles’ concern, as while there is no sign of salary growth slowing down, we might question how long can we expect this all to go on for?

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Retention Rates: Magic Circle Results Finalised as Clifford Chance Underwhelms

As the results continue to roll in, some of this year’s spring retention rates may surprise you as much as they did us. They have by no means spoiled the picture painted by early announcements, but we are witnessing a wider spread in results than anticipated; splaying a diverse canvas of this season’s retention results.

Clifford Chance was the last of the Magic Circle to announce its spring retention rate, and it came in considerably lower than expected, with Legal Cheek reporting a retention score of 70% (32 out of 46). This is a marked drop from the firm’s 88% retention rate reported last spring and puts the global powerhouse firmly at the foot of the Magic Circle, which averages 86% as a whole this spring and a massive 90% when Clifford Chance’s score is stripped out.

There’s much better news however for CMS, which has retained 24 out of its 25 qualifying trainees, giving the City firm a 96% spring retention rate. It has been revealed that more than half the final-seat trainees will be qualifying into the Energy, Infrastructure & Project Finance, Technology & Media and Corporate teams. CMS has maintained its 90%+ retention rate from last year, continuing on with what is a very impressive score.

Firmly in the middle of the pack, Herbert Smith Freehills confirmed that it will be retaining 24 of its 29 final seat trainees for a score of 83%, which is slightly below our updated average retention score of 85.5%. With recent salary changes, NQs staying on with the litigation heavyweight will be earning a base salary of £105,000 per annum, a full £5k more than their counterparts at Freshfields.

Another solid if unspectacular performer this spring is New York outfit White & Case, which is retaining 19 out of its 23 qualifying trainees (83%). These NQs (who’ll be earning a whopping £140,000 per annum) will be qualifying into abroad range of the firm’s global practice groups including Capital Markets, Commercial Litigation and Debt Finance, with two heading to the firms’ offices in Dubai and Paris. A retention rate of 83% is par for the course for White & Case, which has averaged 82% over the past five years.

Finally, news of a second 100%retention rate this spring as Silver Circle outfit Macfarlanes announced that it’s retained all six trainees due to qualify in March. The firm did not disclose what departments the talent would be moving into but Jat Bains, the firm’s Graduate Recruitment Partner, stated the firm’s pride in its ability to continually retain such a high percentage of its trainees.

The Big Picture:

As alluded to earlier, the overall retention score for spring ’22 has dropped from 88.3% to 85.5%, with the 70% retention rate reported by Clifford Chance being the guilty party.

Even though all the Magic Circle results are in, we are still very much in the midst of retention season, and we’ll be back in a few weeks to wrap up the results.

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The Standings of Spring 2022: Retention Rates Spell Hope

Like the first weekend of rugby’s Six Nations Championship, the first few retention rate announcements of the year mean only one thing; spring is on the way! As the legal sector continues to move apace, law firms are thankful that NQs are—on the whole—staying put.

If you read our recent blog on the battle for talent and skyrocketing salaries, you’ll know that the market for junior lawyers is hotter than ever. As if to prove our point, since we published the blog last week, Milbank have raised their NQ salary to $215,000 (c. £160,000),and Cadwalader are following suit.

With the market this buoyant it is no surprise that the early retention rate announcements are generally very positive.

Magic Circle posts strong results

First out of the blocks this season was Linklaters, which reported a retention rate of 94%; holding onto 49 out of its 52 March qualifiers. This is a strong defence of the firm’s Autumn retention score when it retained 45 of its 48 (94%) final seat trainees.

The second magic circle firm to announce was Slaughter and May which is retaining 85% of its spring intake (34 out of 39); a drop from an impressive 93% this time last year. That said, it’s still a decent result for Slaughters and early projections suggest that this figure will be close to the average retention rate this spring.

At the tail end of last week, Freshfields announced that it was keeping 34 of 37 spring qualifiers for a score of 92%; a 2% drop from last spring. While these soon-to-be NQs may be miffed that their pay packet will be lighter than all their magic circle counterparts, they can console themselves with the fact that they’re still earning a six-figure salary.

The latest result is just as solid, as just yesterday, Allen and Overy were the penultimate magic circle firm to announce their retention rate, and have achieved a very solid 87% retention score with their increased intake of 38 trainees.

All eyes are now on Clifford Chance, which will complete the magic circle picture.

Notable others:

The lowest retention score we’ve seen to date was announced today by City heavyweight Simmons & Simmons, which will be retaining just 4 of their 7 final seat trainees on permanent deals. This is of course a small sample size, but the firm will nonetheless be disappointed with a retention rate of just 57%.

Bryan Cave Leighton Paisner has also posted a slightly underwhelming score of 71%. The Silver Circle firm will be keeping 13 out of 18 trainees across London and Hong Kong and, presumably, 12 out of 17 trainees in London. Having held onto 19 of 22 trainees last autumn, the firm will be looking for this figure to bounce back later this year.

The best result announced to date comes from Shoosmiths, with Legal Cheek reporting that the firm will be keeping all 7 of their final seat trainees, giving them the first perfect score of the season. Coming hot on the heels of the opening of the firm’s first international office in Brussels, it seems that it’s all go a firm which is rapidly shedding its regional image.

The Big Picture:

While the early announcements are somewhat of a curate’s egg, the general picture is certainly looking positive. Out of 197 qualifying trainees, 174 are being retained for an overall retention score (to date) of 88.3%, which represents a marked increase on the last few years.

Will these first seven announcements be a forerunner for a stellar set of results? We’ll update you in a few weeks’ time.

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5 tips for nailing your virtual interview

Your ability to demonstrate that you have the skills and experience to succeed in a new role is the single most important aspect of performing well at interview, and it shouldn’t be affected by whether you attend the interview face-to-face or virtually.

But as we all know, succeeding at interview is about much more than just skills and experience. Building rapport with your interviewers is crucial, as is demonstrating that you have the right soft skills.

It would be a big mistake not to consider how the virtual environment affects these aspects of the interview process.

At NQ Solicitors we’ve been prepping candidates for virtual interviews for the last year and anybody that attends an interview through NQS can expect to hear the following:

1. Arrive Early

For traditional, face-to-face interviews I would advise that you aim to arrive 15 minutes early – just in case you encounter any delays in getting there. Although I wouldn’t want you to put the interviewers under any pressure by actually reporting to reception until five minutes prior to the interview slot (at the earliest).

The problem with the virtual interview is that it can lull you into a false sense of security in this regard. I know you only have to click on a link to be ‘in the room’ but you can still experience delays, so I still advise that you plan to arrive early.

Depending on what platform you’re using, you may or may not be able to check that the meeting link is working in advance. If you can, great! If you can’t, then why wait until the exact start time before seeing if it does?

I would strongly advise you to click on the link five minutes early. That way, if you do experience any technical issues (and they do happen) you’ll have a few minutes to try again, restart your PC/laptop or contact the interviewers.

Technical issues DO occur, and while interviewers are generally sympathetic when delaying the start of the meeting, it will put you on the back foot and your heart rate will be much higher than it needs to be during the crucial first few minutes.

2. Consider your backdrop

It’s a good job that most celebrities had nothing to do during the early stages of lockdown, as it’s clear they spent an inordinate amount of time rearranging their studies, polishing their awards and going through their bookshelves with a fine toothcomb.

While you certainly don’t need to aspire to perfection, it is worth spending a few minutes considering your backdrop and getting it right. It doesn’t need to be a plain wall, but it shouldn’t look cluttered or untidy, and you don’t want anything else to be taking the attention away from you.

During the interview, you’re going to be selling yourself as an organised and capable individual. Your backdrop should be on message!

3. Are you sitting comfortably?

This shouldn’t be an issue for those of you living by yourselves, but if you share your home with a few rowdy flatmates, you may be concerned about where’s best to conduct the interview.

A short time ago we arranged a virtual interview for a candidate who shared a house with three other young professionals. Concerned about the potential for disruption during the interview, he set himself up in the quietest room in the house, which also happened to be the coldest room. The candidate wore a smart shirt, but no jumper, and after a short while he found himself shivering.

The feedback we received from the client was that, while he came across as a credible candidate, he seemed to be overcome with nerves and they didn’t progress him to the next round.

While we definitely don’t want you to be lounging on a sofa, we’d advise that you’re comfortable in your surroundings and have taken a little time to consider heat, light and sound.

4. Dress for the occasion

I’d still advise that for most law firms, a suit (including a tie for men), is the right choice if you’re attending an interview in person, however, it’s certainly not needed for a virtual interview. In fact, I’d go as far as saying that it won’t look quite right if you’re wearing a suit jacket in your study, front room, kitchen (delete as appropriate).

Having said that, it’s still an interview and you want to look like you mean business, so I’d strongly advise that a formal shirt is the best way to go, and if you’re not warm enough, I’d rather you wore a smart sweater on than shiver your way through the interview – see tip 3.

By the way, there’s nothing wrong with asking your target firm how the interviewers will be dressed. I’d suggest something like ‘I am planning to wear a smart shirt for the interview but I’m more than happy to wear a tie/jacket if the interviewers are planning on doing so. Can you please advise?’

5. Look at the camera

Building rapport with your interviewers is almost as important as demonstrating that you have the skills and experience to take the job on, but it’s generally harder to accomplish during a virtual interview.

There are so many factors that come into play when looking to build rapport and, in a virtual setting, even more of these factors are out of your control. However, maintaining good eye contact – essential if you want to build rapport – is still very much within your command.

If you take just one piece of advice from this blog, let it be this: look at the camera, not at the monitor!

Candidates often say to me that they like to look at the monitor to gauge the interviewers’ reactions to their answers, but I think they often read too much into these reactions and in a virtual environment, where we might be dealing with slow connections, reading body language and reactions can be wildly inaccurate.

Also, if the interviewers react negatively when you’re answering a technical question, it’s probably best that you don’t see it as you’ll still be dwelling on it while answering the next question.

You don’t need to stare at the camera throughout the interview, but you should spend the vast majority of time (especially when you’re talking) delivering your message directly to the camera.

Maintaining good eye contact with multiple interviewers is actually far easier during a virtual interview. Instead of having to switch eye contact on a regular basis, the camera allows you to maintain eye contact with multiple parties at the same time.  

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10 interview secrets every junior solicitor should know when applying for a new role

NQ Solicitors’ Ian Roberts has advised thousands of applicants within the legal sector over the years and is in no doubt what factors make the difference between success and failure. In this blog, we set out Ian’s top 10 interview secrets for solicitors moving firms upon qualification.

You’re about to qualify as a solicitor after years of hard slog but all that effort could be in vain unless you can secure the right role at the right firm. The good news is you’ve got an interview at a firm you’d love to work for. Here are 10 tips that will help you dazzle your interviewers and get that all important offer.

1. First impressions count

According to various studies, you have c. 17 seconds to make a good first impression, so don’t waste them. The following are basics but shouldn’t be overlooked. Start with a good firm handshake, (but don’t do a Donald Trump). Make steady eye contact (but don’t stare), smile and say “pleased to meet you” in a confident and sincere tone and you’re off and running. The goal is to make a connection and start building a rapport with your interviewer(s).

2. Commit yourself

As Wayne Gretzky said: “You miss 100% of the shots you don’t take.” Or, if you’d rather not take your inspiration from an ice hockey player, think of it this way. If you’re not totally committed to getting an offer, you may as well not show up for the interview. Firms want people who they can see are excited to work for them. If you’re dialing it in, they’ll see through you.

3. “So, why do you want to work here?”

This question is asked at almost every interview and the answer is so important, yet amazingly, this is the question that catches candidates out more than any other. Do your homework on the firm. Answer the question by reference to what you have learned and give specific examples. What it is about the work the firm does, its culture, its reputation and its story that appeal to you. Show why you would be a good fit and why you’re precisely what they’re looking for.

4. “Have you applied to stay with your current firm post qualification?”

The interviewers know how the NQ system works. They are more than likely to ask questions like the above and others along the same lines. “Where you are in the process?” “How many and what seats have you applied for?” “What would you do if they offered you a role?”

These can be tricky to answer. You may be waiting to hear from your training firm and would prefer to stay there if they make you an offer. If so, you won’t want to make it evident to the interviewer that they are a back up.

Alternatively, you may be pretty sure that your training firm doesn’t want to keep you on or may have decided that your future lies elsewhere. But you won’t want to say this if you feel it will shed you in a bad light.

Rule number one, don’t lie. First of all, it’s inappropriate for a solicitor and secondly, there’s a good chance you’ll get caught out. Remember, the legal world is a small one.

What you can say is that you’re aware that it’s a highly competitive process at your training firm and you would be foolish not to see what other opportunities are out there.

You may also give candid reasons why the firm you are interviewing with appeals to you in ways that your training firm doesn’t (without slagging them off). This may perhaps be because of its size, the work it does, its work/life balance, etc. Be subtle and frame all your answers positively.

5. Your CV got you here, but it won’t get you the job

Interviewers are interested in the person behind the CV, not the CV itself. The interview is about you as a person and, to a certain extent your technical knowledge, not your qualifications. What matters now is how you express yourself, how well you will fit in at the firm, what you’ve learned during your training contract and what your ambitions are.

6. Be prepared to talk about anything on your CV

We mean anything. If you say you like the theatre, then be prepared to tell your interviewers what the last three plays you saw were and when you saw them. Or, if you say you speak basic German, be prepared to answer “Warum möchtest du hier arbeiten?”. I’ve known candidates get grilled for 20 minutes or more on seemingly throwaway bits of information on their CVs leaving them wishing they hadn’t put them on there in the first place. It’s your CV, you have to own all of it.

7. Show you are at the right end of the NQ spectrum

We all know that some trainees ‘get it’ from day one. They understand how to run a file, deal with clients, get their work done without drama and are in tune with the firm’s ethos and commercial objectives. They may not be the trainees with the most impressive CVs, but they will make the best lawyers. Your interviewer knows this too and is digging to find out if you are one of these or one of the others. The lame ducks. A good CV but no grasp of what the job is all about. It’s a spectrum and you need to show you are at the right end.

8. Give specific examples of what you have done

Don’t speak in generalities, be specific. Paint a picture, tell a story, put some meat on the bone (pick your own cliché if you like). The interviewer needs to be sitting there imagining you doing the things you’re talking about and picturing you doing the same for their firm. (Remember, while being highly specific is essential, be careful not to give away client confidentiality).

9. Always ask questions

Pick up on points they have mentioned during the interview to show you’ve been listening. Ask questions that demonstrate your interest in the firm, your understanding of the work they do, their culture and the types of clients they have. Check out the LinkedIn profiles of the people interviewing you (beforehand, not on your phone in the interview) and ask about their career path and anything especially interesting or relevant. Ask about future training to show your desire to become a well-rounded lawyer and what your prospects of rising through the firm would be if you do well.

10. Don’t play hard to get

At the risk of sounding like a Facebook meme, “Don’t play hard to get, play hard to forget”. Leave the interviewer in no doubt that you want the job. Be enthusiastic though not gushing. Be keen but don’t grovel. They hold most of the cards and want to employ someone who is genuinely motivated to work for them and do well. Show them you are.

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Mixed results for latest firms to announce retention rates

The latest set of qualification announcements has seen the overall autumn retention rate, (excluding NQs retained on fixed-term contracts), decrease from 84.62% to 83.65%.

Among the firms to announce below average retention rates was Bryan Cave Leighton Paisner, which will be retaining 14 out of 19 final seat trainees (76%). Of the five trainees who were not retained, two accepted roles elsewhere while the remaining three were unable to secure positions due to a fiercely competitive NQ recruitment market.

While a retention rate of 76% will never be regarded as a stellar result, BCLP will not be too disappointed given the impact of Covid-19 and the firm’s reliance on high-end commercial real estate work.

Chloe Muir, BCLP’s Senior Graduate Recruitment & Development Manager said ‘Congratulations to our 2020 autumn cohort who overcame a tumultuous final few months. We are delighted to have attracted and retained such a high standard of talent. We wish them all the very best of luck for the future.”

Other firms to perform ‘below par’ (or ‘over par’ for you golfers out there) were Simmons & Simmons, which will be keeping on 13 of 15 qualifying trainees (72%), with one being retained on a fixed-term contract and Charles Russell Speechlys, which is retaining 19 of 26 qualifiers (73%), including two on fixed-term contracts.

Two firms to post above average retention rates were City firm Bird & Bird, which is keeping on 16 of 18 qualifying trainees (89%), and US powerhouse Shearman & Sterling, where 10 of its 11 NQs (91%) have secured permanent positions, (eight will be staying in London and one each will be based out of the firm’s Abu Dhabi and Singapore offices). 

Lastly, I’m sure the top brass at regional firm Weightmans would hate the firm to be described as ‘average’, but their retention rate was exactly that – the firm are keeping on 16 of 19 qualifiers for a rate of 84%.

It’s been an interesting couple of weeks for Weightmans which announced a 6% rise in turnover for the previous financial year (despite Covid headwinds ruining the month of April), just five days after launching a redundancy consultation as part of a long-term strategy to restructure its business.

We’ll keep tabs on any other announcements as the autumn retention season draws to a close and will keep a particularly close eye on the results announced by Gateley and any other firm that chose to furlough trainees or push back qualification dates to the depths of what could be a long winter.

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