Market Focus

According to the late, great Robin Williams, “Spring is nature’s way of saying, ‘Let’s party!’” We look at which of spring’s NQs have spent the past few weeks dressed up in their glad rags and popping open the champagne.

The magic circle firms were among the first to release their spring 2018 retention figures, with Freshfields at the bottom of the pile after posting disappointing results for the second round running. Out of 42 qualifiers, it made offers to 32, of whom 31 accepted (74%). This follows a disappointing score of 66% last autumn. Its new cohorts start on £85,000.

A spokesman for Freshfields said: “As ever, our retention rates vary across each intake as we balance a number of different factors when determining the offers that we make to individuals.” A lesson in how to say very little in the face of indifferent news if ever there was one.

Linklaters kept on 43 newly qualified solicitors out of 51 (84%). This is slightly ahead of Allen & Overy’s 80% (32/40) but behind Clifford Chance’s impressive 92% (44/48) and Slaughter and May’s almost flawless 95% (35/37).

Linklaters’ training partner Richard Hodgson said the firm’s performance “demonstrates our continuing ability to offer our trainees exciting qualification opportunities into a best in class and globally minded firm”. Its NQs will start on a base salary of £78,500, but this could jump to £90,000 depending on bonuses.

Outside of the magic circle, Herbert Smith Freehills was punching the air after 35 out of its 37 NQs accepted offers to stay on (92%). Training principal James Bailey was quick to point out that a number of London trainees qualified into overseas offices which, he said, “shows the extent of international opportunities at the firm”. Its new lawyers will be on £82,000.

Leading global firm, Baker & McKenzie, kept on 14 out of 17 (82%) which was only a smidgen behind Norton Rose Fulbright who posted an 83% figure with 20 out of 24 staying with the firm. This is a pleasing bump after its poor 69% retention figure last September. Another global firm, Hogan Lovells, announced a 78% figure (25 out of 32), only a tiny dip compared to its 80% last autumn. They are on £75,000.

Elsewhere, Macfarlanes announced it was to keep on all six of its qualifiers. They must be doing something right over in Cursitor Street as this is the third successive round in which the firm has managed a perfect 100% score. This eclipses Simmons & Simmons nevertheless impressive 83%, the firm holding onto 10 out of 12 NQs, who will start on £71,000.

White & Case retained 13 out of 16 (80%) of whom 11 will be based in London and two in Dubai. CMS meanwhile racked up a score of 75%, 30 out of its 40 qualifiers staying with the firm. Of these, 27 will be based in London (on 67,500 pa), two in Bristol (£49,000) and one in Manchester (£40,000).

Overall, a steady set out results from the big firms in this retention cycle, without any of the horror stories we sometimes see at this time of year. Keep an eye out for our blog later in the summer when firms start revealing their all-important autumn 2018 figures.

Firms have started to announce their spring 2018 retention rates and so far, it’s good news for NQs. Here’s our round-up of the spring retentions to date

Magic circle firm Slaughter and May was one of the first to announce its spring retention rate and no wonder as it’s an impressive 95%. It made offers to 36 of the 37 trainees qualifying in March, all but one of whom accepted. This compares to a figure of 91% last autumn and a 100% clean sweep this time last year. Its new solicitors can expect a starting salary of £80,000.

Over at magic circle rival Clifford Chance, applications were received from all 48 of its spring qualifying trainees with offers made to 44. All were accepted (92%), and they will start their new role on a not to be sniffed at £87,300 a year. This season’s retention rate is a marked improvement on last year when only 31 out of 46 qualifiers (67%) stayed with the firm.

Keen no doubt to spread the good cheer, Mayer Brown revealed its perfect retention score before Christmas. Admittedly it’s a small sample size but even so, all four of its qualifiers are being kept on and will start on £75,000. This puts them on a par in terms of salary with DLA Piper, Hogan Lovells and Macfarlanes.

Six of Trowers & Hamlins’ seven spring NQs are remaining with the firm (86%), three in London, two in Manchester and one in Exeter.

All these firms are making a habit of announcing their retention rates early as they were the first to post their results last year, too. In that respect, this year is following a similar pattern to last with few firms releasing their retention information before the last couple of weeks of February.

It comes at a time when the Law Society has issued fresh guidance urging firms to avoid leaving trainees in limbo before qualification. The Law Society’s Junior Lawyers Division (JLD) would like trainees to be given at least eight weeks’ notice of whether they are being kept on. The chair of the JLD told Legal Cheek: “In extreme cases, trainees have been told there is no role for them the day before their training contract ends.”

Clearly, this is unacceptable. Hopefully, this new guidance from the Law Society will see firms announcing earlier this year. As and when they do, we will keep you updated.

Salary may not be the be all and end all for NQs but let’s face it, it’s pretty significant. As we said in our recent blog How important is remuneration for NQ and junior solicitors when they’re looking to move firms? other factors, such as work/life balance, do come into play.

But after years of hard toil to get to the point of qualification, who could blame a junior solicitor for demanding a law firm to “Show me the money!”?

If big bucks are your sole driver and the thought of giving your life and soul to your job a la The Firm doesn’t faze you, try to find a spot at a top US firm. Competition is fierce as due to their headcount in London they have far fewer vacancies at the junior level. And, it’s certainly not for the faint-hearted. Although not all US firms in London pay over £100,000, lots do. Latham & Watkins, Skadden and Sidley Austin all pay around the £120,000 mark. Kirkland & Ellis and Akin Gump both pay in dollars ($180,000), which equates to a staggering £140,000 at the current exchange rate.

Magic circle firms don’t try to keep pace with salaries like these but the pay for NQs is still very healthy. Freshfields hiked NQ salaries last year by almost 26% to £85,000 but has kept them unchanged this year. With bonuses, NQs can expect to earn up to £97,000.

Slaughter and May also announced that it is not increasing base pay for newly qualifieds for 2017/18 – NQs will receive £78,000. Clifford Chance has reportedly lifted base NQ pay by 2.7% this year, but the firm has declined to comment, as has Allen & Overy who last year paid NQs a base salary of £78,500.

Linklaters has increased base pay for newly qualifieds from £77,500 to £78,500 this year, but this tells only part of the story. NQs are categorised by the firm as either “high performers” or “median performers” and receive different bonuses accordingly. It is estimated that NQs at the firm will earn somewhere between £82,000 to £92,000.

Within the silver circle, Herbert Smith Freehills has frozen London trainee and associate salaries for 2017/18, but high performers can still expect to take home between £82,000 to £90,000. Ashurst has raised NQ salaries to £72,000 per annum.

Elsewhere in the top 30 (outside the magic and silver cirles), Norton Rose Fulbright NQs will receive £75,000, which compares favourably to those at CMS (£67,500), Dentons (£65,000), Taylor Wessing and Clyde & Co (both £63,000)

Among the national big-hitters, DLA Piper has raised London NQ salaries by 7% to £75,000 although their colleagues outside London will receive £42,000. It’s a similar story at Eversheds Sutherland, whose London-based NQs will start on £64,000 while those in the regions will be on £41,500. Addleshaw Goddard’s London NQs will start on £62,000 with their regional counterparts on £40,000. Meanwhile, DWF’s London NQs will be paid £59,000, with those in the regions on £38,000 and in Scotland £36,000.

Among mid-sized London firms, newly qualifieds at law firm of the year Mishcon de Reya will receive £67,000, Bristows is paying £63,000 to its NQs, with Farrer & Co NQs receiving £60,000 and those at Collier Bristow £53,000.

Although the size of a firm is a good rule of thumb as to what it pays its NQs (bigger is usually better), it is not the only factor. Several boutique firms pay their newly qualified solicitors handsomely though they expect exceptional commitment and the work/life balance can be similar to that at a big US or magic circle firm.

This is a snapshot of what some firms pay its NQs and isn’t exhaustive. If you have specific queries about NQ salaries or are thinking of moving firm – whether motivated solely by money or otherwise! – please get in touch.

Retention rates have been relatively strong this Autumn, contrary to the expectations of some legal commentators. We look at the latest series of Autumn 2017 retention announcements

In July, we reported on the early retention rate trends amid concerns that Brexit and the fall out from the collapse of King & Wood Mallesons would damage the prospects of trainees qualifying this Autumn. Apart from a few notable exceptions, these concerns have not materialised.

That’s certainly the case at magic circle firm Linklaters, which made offers to 53 out of 56 qualifiers. Six chose not to accept, meaning that 47 are staying with the firm, a retention rate of 84%. This compares closely with fellow magic circle firm Allen & Overy, whose September rate is 85%, with 40 out of 47 NQs accepting offers to stay. Clifford Chance performed slightly worse, keeping on 42 out of 52 trainees (81%).

Not such positive news for Freshfields trainees, though. Its September rate is just 66% (27 out of 41, with offers made to 29).

Best of the magic circle, however, is Slaughter and May’simpressive 91%.

Of the larger City firms outside the magic circle, this Autumn’s weakest performer so far is Taylor Wessing, which announced its worst figures in nine years. Just 16 of its 26 qualifiers are staying on, a percentage of 62%. Perhaps surprisingly, it’s a similar story at The Lawyer’s Law Firm of the Year Mishcon de Reya, which announced a lowly 64% retention rate. Nine out of the firm’s 14’s qualifiers are staying on, a poor figure from a firm that this time last year kept all 11 of its qualifiers. It’s a similar story at Dentons, which is retaining only 14 out of 21 trainees in its London office and five out of seven in Milton Keynes (a total of 68%).

Better news at Stephenson Harwood, with nine out of its 10 NQs accepting jobs (90%). Silver circle firm Macfarlanes has gone one better, with all 25 of its trainees being retained although two of them are on fixed-term contracts.

Other strong performers include Latham & Watkins (an exceptional 20 out of 21, 95%), Reed Smith (12 out of 14, 82%), Bird & Bird (15 out of 18, 83%), and Hogan Lovells (25 out of 30, 83%).

Regional heavyweight Eversheds Sutherland retained 44 out of 55 trainees across the UK. A regional breakdown by the firm showed that it kept all three of its Newcastle trainees, with two out of three trainees at each of their Nottingham and Cambridge offices staying on. The firm’s London office is keeping on 14 trainees and Manchester is retaining eight.

US firm White & Case is retaining 15 out of 18 qualifiers (83%), a good follow up to its 88% retention rate in the Spring of this year. Meanwhile Baker & McKenzie has scored a highly impressive 94% (15 out of 16), with one trainee opting to move into the financial sector.

Less good news at international firm Norton Rose Fulbright who scored a disappointing 69% (18 out of 26). This compares poorly to this time last year (85%) and this Spring (83%).

Outside London (or at least, partly outside London), Bristol headquartered Osborne Clarke has kept on 14 of its 17 qualifiers, eight of whom will be based in Bristol, five in London and one in Reading (82%). This is a creditable performance, though the firm won’t want to be compared to its West Country competitor Burges Salmon, which posted a clean sweep of its 28 trainees.

All in all, it’s a far better set of results than the doom and gloom merchants were predicting at the start of the Summer.

It’s sweaty palm time for NQs around the UK as law firms finalise their NQ allocations and start to announce their retention rates. We take a look at the early figures to see what trends we can expect over the coming weeks.

Only a few firms have released their autumn 2017 retention figures so far, among them magic circle firm Slaughter and May. The firm has reported that all 32 of its qualifiers applied to remain with the firm, out of which 29 are staying on (a retention rate of 91%). This compares to its impeccable record in spring 2017, when it retained all 25 of its qualifiers and its 89% showing this time last year.

This is an early indication that the doom and gloom some commentators expected this autumn may not materialise. The Lawyer reported in early July that fewer NQ roles would be available this year. This was put down in part to the fall-out from the collapse of King & Wood Mallesons earlier in the year and the uncertainty surrounding Brexit.

Other figures recently released show that these industry fears may be unfounded certainly so far as the London market is concerned.

Silver circle firm Ashurst is keeping on all but one of its 20 qualifiers (95%), an improvement from its 85% result in the spring. Fieldfisher has gone one better, retaining all 13 of its trainees qualifying in September. Elsewhere in London, US firm Shearman & Sterling has reported an 87% retention rate for this autumn, down on its 100% record last year, but still an impressive return.

Not quite such good news for Newly Qualified Solicitors at Mayer Brown and Withers, who posted identical scores of 73%, both keeping on eight out of 11 trainees. Mayer Brown’s results contrast sharply with their 100% record in the spring, albeit from only four qualifiers. Withers’ result is a fall from 83% last year.

Trowers & Hamlins is another firm whose figures are on a downward curve, with only seven out of 10 qualifiers staying on compared to 79% last year and 92% in the spring.

The market in Manchester was reported in The Lawyer as being “a tense one” for qualifiers with rumours of firms that usually had room for four or five NQs in some departments taking one or none.

So far, none of the large Manchester firms have revealed their figures, but some positive news has come from other regional/national firms.

Bristol-based Burges Salmon has announced a perfect 100% retention rate for its 28 September qualifiers. This is an improvement on its already impressive recent average of 92% over the last three years.

Leeds firm Walker Morris also has a clean sweep, keeping on all 14 of its autumn qualifiers. National firm Blake Morgan is losing only one of its nine qualifiers (89%) and RPC is keeping 14 out of 17 (82%). Hopefully these figures give NQs in other regional and national firms confidence as they pitch for their jobs over the summer.

We’ll keep you updated as further announcements are made over the rest of the summer.

In our blog last month, Spring Retention Rates Reflect Brexit Uncertainty, we looked at the early spring retention rates published by some of the larger London firms.

Since then nine more leading firms have released their figures, among them magic circle firms Allen & Overy, Freshfields and Linklaters. Let’s start with these three heavyweights.

Freshfields just edged it with a retention rate of 84% compared to Linklaters’ 83% and Allen & Overy’s 82%. Freshfields offered NQ positions to 31 of its 37 spring qualifiers, all of whom accepted. This is the same number as last spring although it had 38 qualifiers at that time. The NQs will start on a healthy £85,000 a year.

Linklaters had 51 spring qualifiers – the highest number of any UK law firm – of whom 48 applied for NQ positions and 44 will be staying with the firm. They will be on £77,500.

Over at Allen & Overy, 36 out of its 38 spring trainees applied for jobs as NQs with all but five being successful. Its retention rate of 82% is down on last autumn’s 86% and its impressive 91% this time last year.

These results place Linklaters, Allen & Overy and Freshfields comfortably between rivals Slaughter and May (an impeccable 100%) and Clifford Chance (a less than impressive 67%).

Elsewhere, Simmons & Simmons has announced a spring retention rate of 80%, with 12 of its 15 qualifiers taking NQ positions. This represents an impressive bounce-back from its stumble last autumn when it kept just 50% of its 24 qualifiers. But is all as it seems? There have been accusations in the legal press that “several” of its NQs are on fixed-term contracts. Is this a dastardly attempt by the firm to skew the figures? We couldn’t possibly comment (as we don’t know).

But there’s even more to this than meets the eye. Last year, the firm announced a spring retention rate of 78% (seven trainees from nine). Later, there were suggestions (again in the legal press) that it started with 13 trainees. If this is true, and again we don’t know, the true retention rate would have been only 54%.

Silver circle firm Herbert Smith Freehills will be disappointed with the 77% retention rate at its London office because it marks a dent in its impressive recent record. In the past four rounds it has managed to retain more than 90% of its trainee solicitors and this is the first time since 2009 the figure has fallen below 80%. Offers were made to 28 (out of 35) trainees, all but one of whom accepted.

Better news was to be had at fellow silver circle firm Macfarlanes. It proudly claimed a clean sweep, though from a modest six qualifiers. This is an improvement on a more than respectable 85% last autumn from 21 qualifying trainees. This spring’s new crop of NQs will start on £71,000 a year.

Norton Rose Fulbright will be pleased enough with its spring retention rate of 83% though it is a reduction on its 96% this time last year. The 20 qualifiers remaining with the firm (out of 24) are split evenly between male and female trainees and will start on £72,000 a year.

Transatlantic firm Hogan Lovells is keeping 23 out of 29 spring qualifying trainees (79%). This is in line with its performance last autumn when it retained 80% (24 out of 30).

Finally, good news at Osborne Clarke which is keeping all six of its trainees. Three will be based in its London offices, two in Bristol and one in its Thames Valley office (Reading). Last spring, the firm kept on all seven of its qualifiers.

Once again we have a mixed bag, with (not surprisingly) the best results coming from the firms with the smallest intakes. The figures are not consistently good across the board, though, which as we mentioned in Spring Retention Rates Reflect Brexit Uncertainty is probably due to prevailing uncertainty. Lawyers are renowned for their caution and taken as a whole these figures reflect that.

We will be bringing you further updates as more firms announce their retention rates in the coming days and weeks.