So far only six of the larger London firms have published their retention rates for spring 2017, but they make interesting reading.
Slaughter and May tops the list with a 100% retention rate for their 25 spring qualifiers. This is great news for those trainee solicitors and comes as little surprise as Slaughters is a habitually strong performer when it comes to the retention of trainees. This year’s full house compares to 95% last year (38 out of 40 trainees retained) and 88% the year before (37 out of 42). It seems the firm’s policy of taking on slightly fewer trainees has done the trick of boosting their already impressive rates.
This is in stark contrast to Clifford Chance, which is keeping on just 31 of their 46 spring qualifiers. The firm has fewer trainees qualifying this spring than last (46 compared to 54) yet the retention percentage has dropped from 80% to just 67%. This continues a downward trend from the 90% retention rate for spring 2015.
Trowers & Hamlins and White & Case will be pleased to announce high retention rates, both of which represent a small improvement on last spring. Trowers & Hamlins’ 93% compares to 88% last year and 82% the previous year, a positive upward trend. White & Case’s 88% is almost bang on their 87% retention rate for the previous year.
Far less impressive is the news from Berwin Leighton Paisner, which is keeping on just 11 out of their 20 trainee solicitors (55%). This is a decline from the firm’s already poor figure of 70% from last year. It also continues a run of five successive rounds of disappointing retention rates. The firm kept on only 65% of their trainees last autumn.
Mayer Brown is retaining all four of its trainees, vindicating the decision the firm took in July 2014 to dramatically reduce its intake in order to improve its retention rate. However, it would be wrong to draw any conclusions from such a small sample size.
A mixed bag then, and trainees would be forgiven for starting to feel anxious. It is still too early to draw any firm conclusions, but the figures support our impression from speaking to clients that there is Brexit-induced apprehension in the air.
That would certainly explain Clifford Chance’s numbers. Yes, the firm does an awful lot of banking work, so has a right to be more nervous of Brexit than many of its peers. But, if we look back at the global financial crisis we can see that Clifford Chance retained 79% of qualifiers in spring 2010 and 91% in spring 2011. What can we read into this?
It wouldn’t surprise us one bit if several other large firms take a cautious approach and reduce the number of trainee solicitors they retain this spring and, indeed, in the coming autumn. With profits per equity partner (PEP) becoming an increasingly important yardstick these days, law firms move quickly to cut overheads when things slow down and profits threaten to slide. Reducing the number of NQs is seen as a quick fix.
These firms will be confident that if the Brexit effect is not as bad as many fear, they can dip back into the recruitment market and find the junior solicitors they need.
We are in little doubt that the prevailing mood among leading law firms is one of uncertainty. This is one reason why NQsolicitors.com had more than 100 September 2017 qualifiers activate an account within days of commencing our marketing campaign.
NQSolicitors.com Managing Director Ian Roberts says: “While it is too early to make any hard and fast judgements, we would not be surprised if the majority of top 50 law firms report lower retention rates this spring. Certainly, our own numbers would indicate that there are more newly qualified solicitors on the market. Good news for firms looking to pick up new talent, not such great news for trainees.”
With many more announcements due in the days and weeks ahead, we will be keeping a close eye on the numbers. Watch this space for an update in the coming weeks.