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Firms more generous than in-house with salary raises
New findings from a global professional recruitment group have shown that while more in-house lawyers will receive pay rises in their next employment reviews, traditional law firms will be more generous in terms of dollars.
Jerome Doraisamy
The 2018–19 Hays Salary Guide has revealed that 11 per cent of law firms intend to increase lawyers’ salaries by more than 6 per cent, and 24 per cent expect to do so between 3 and 6 per cent.
Just 6 per cent of in-house lawyers will get a raise of 6 per cent or more; 18 per cent will see an increase between 3 and 6 per cent.
Overall, more corporate counsel will receive raises, but theirs will not be as generous as those received by lawyers within firms.
Such findings are in line with the additional result that more firm-based lawyers expect to receive salary increases, with 17 per cent expecting a rise of 6 per cent of more.
“An increase in specialist demands and a high number of vacancies are the dominant themes of Australia’s legal jobs sector at present, thanks to buoyant activity from boutique, mid-tier and national firms and an improved in-house market,” explained Hays Legal managing director Darren Buchanan.
Discrepancies in salary rises may be partly explained by different values, he noted, with firm-based lawyers prioritising pay increases in greater numbers, with 67 per cent saying it was their foremost career priority this year.
Almost half (48 per cent) noted they would ask their firm for a raise if one was not offered.
“In the in-house market, senior level candidates are often prepared to accept a reduced salary for an in-house role that offers career progression, exposure to a preferred industry or work/life balance,” he said.
Despite this, however, there has been limited salary movement across the legal profession due to an “oversupply of graduates”, he argued.
“Conveyancing staff are the exception, with more mid-tier firms outsourcing requirements to boutiques,” he said.
“Top tier firms offer high salaries for sought-after skills, especially in corporate and banking and finance.”
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly. A former lawyer, he has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. He is also the host of all five shows under The Lawyers Weekly Podcast Network, and has overseen the brand's audio medium growth from 4,000 downloads per month to over 60,000 downloads per month, making The Lawyers Weekly Show the most popular industry-specific podcast in Australia. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of Minds Count.
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