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Grad oversupply limiting salary movement
An oversupply of graduates across the legal profession has led to hamstrung salary movement and strategic intake and retention of young lawyers, according to a leading recruitment firm.
Jerome Doraisamy
Speaking to Lawyers Weekly about the 2018–19 Hays Salary Guide, Hays Legal managing director Darren Buchanan said up until five or six years ago, all law firms would offer article clerkships and traineeships for law students.
“Today, however, these same firms will take on just five or six graduates and retain them all.”
Limited salary movement is occurring at the lower level for graduates, and for those with up to one year of post-qualification experience, due to oversupply of candidates at this level.
“It is a case of supply and demand. But anyone with experience in practice will go on to receive regular salary increases over time,” he said.
“For experienced legal professionals in professional practice, salaries will progress at the senior level in line with their experience.”
The trend of limiting intake and retention is “definitely the new norm”, he argued, but is somewhat in conflict with the large numbers of graduates coming out of Australian law schools.
“Another element is the large number of law students from first year already embedded within firms in other capacities,” he added.
“These existing employees take a portion of the graduate positions because they are already known to the firm.”
In response to the supposed oversupply of graduates, firms are finding it challenging to keep offering salary rises. It is made more difficult with entrenched salary bandings and conservative cultures, in the face of a need for agility in a fast-moving and evolving generation of new talent, he surmised.
“In contract, those firms that have made a conscientious effort to offer salaries above market rate are the ones attracting top talent from the shallowest pools,” Mr Buchanan said.
“A competitive offer doesn’t solely need to be about salary, though.
“Flexible working options, guaranteed bonuses and clear career progression paths are also highly valued by lawyers,” he said.
And even with a perceived surplus of candidates because of more universities offering law as a degree, specialist skills are very much in demand in legal practice, he said.
“Firms could increase the number of traineeships they offer to give students the opportunity to gain experience,” he suggested.
“This would have the added advantage of overcoming the high demand but short supply of lawyers with three or more years post-admission experience.”
The comments from Hays and Mr Buchanan come after research from the Australian Legal Practice Managers' Association showed that salaries for Australian lawyers have hit a year-year low.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly and HR Leader. He has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. In June 2024, he also assumed the editorship of HR Leader. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.
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