More than 240 partners made the move during the past financial year, an increase of approximately 5% against the 5-year average.

The quarterly report by Taylor Root, Partner Perspectives, reveals insights in the latest partner moves across Australia, in an informative and visual interactive web-based format.

To view the web-based report click here > https://www.taylorroot.com/market-insight/australian-legal-industry-partner-movements/

The FY22 report revealed that in the last quarter of this financial year, we experienced a continuation of the quarterly see saw in partner moves with a total of 48 moves taking place. The split across the financial year revealed 65 moves in Q1, 45 in Q2, 82 in Q3 and 48 moves in Q4.

There were also no surprises that there has been enormous pressure on firms to increase fee earner salaries in the last six months or more, for both retention and attraction. The percentage increases across fee earners ranging from anywhere between 10% to 30% in the battle for experience. Whilst major firms have performed very strongly in terms of revenue growth, the impact of these big salary increases on firm profitability and partner profits will no doubt play out over the next financial year.

The Sydney market continued to dominate the lateral partner market with 108 moves reported across the financial year, accounting for 45% of all lateral partner moves across Australia. Next in line was Melbourne with 23% of all moves, Perth with 15% and Brisbane on 13%. The most active practice areas over the last financial year were banking & finance and M&A sharing top spot with 26 lateral partner movements each, followed closely by litigation and corporate/commercial partners. There was a significant drop in lateral partner movements for both real estate and employment / workplace partners compared with FY21.

Interestingly, we have also had an increase in firms across Sydney, Melbourne and Brisbane markets looking for firm merger opportunities with complementary practices and others seeking entire practice groups.

The top 5 firms attracting the most lateral partners for FY22 were Hamilton Locke, Corrs Chambers Westgarth, Mills Oakley, Ashurst and Hall & Wilcox. In terms of net partner gains, there were a few stand outs - Hamilton Locke was one which clearly pursued an aggressive expansion plan attracting about 17 new partners. Other firms with net gains of 6 or more partners included Hall & Wilcox, Mills Oakley, Corrs Chambers Westgarth and Ashurst.

The second half of the financial year saw more activity for whole team moves with 19 teams and 36 partners, compared with the first half of the year with 12 teams and 22 partners. Based on conversations we have had in the market, there is continued interest in firms picking up entire practice groups and/or considering firm merger opportunities.

Gender diversity at many firms remained in the spotlight when considering lateral hires. The most ‘equal’ quarter being Q2 with a 56% / 44% split male to female ratio. There has been a definite increase in movement of lateral female partners in recent years, the financial year ending with 61% of all lateral moves being male and 39% female.

In terms of the broader outlook, there are mixed reports on the continued pipeline for M&A activity both within in Australia and globally, with most seemingly taking the view that some markets will slow down from its peak, but domestic activity is likely to be steady. The energy and resources market is also likely to continue its demand for expertise with the abundance of activity in the renewable sector, as well dealing with major global energy issues which only continue to get worse.

As we highlighted in our last report, with economic storm clouds brewing, the need for litigation and dispute resolution partners is likely to continue. Construction litigation as well as insolvency and restructuring teams will also no doubt see continued demand for their services.

For more details please contact Brad Booth, Aaron Mathieson or Hayden Gordine to discuss your partner recruitment needs in Australia or if you're a senior lawyer or partner wanting to look at options in the market.

View Taylor Root Partner Perspectives on our website or visit taylorroot.com.