In this article, we discuss our 5 top tips for Lawyers when it comes to approaching a salary review. Read on to discover how to prepare, what to consider and how to get the best outcome for your career.
This year will be a challenging one for salary reviews in the legal industry. Research recently presented by the Australian Financial Review suggests that wage growth will be static in 2021 and that bonuses will be limited. Unfortunately, this conflicts with employee expectations from the same research where 40% are expecting a pay rise. The research suggests that 48% of employees are open to changing jobs, so it should be an interesting and busy time for legal industry recruitment! Employee retention may become a challenge for firms in a year of stagnant wage growth.
The Covid-19 pandemic has challenged the industry like never before. When government restrictions ordered people to work from home if they could, processes had to be re-engineered so that they can be performed electronically. Teams adopted video technology and electronic workflow software and worked from home offices, kitchen tables and loungerooms. Flexible working is now the norm in the industry and many employees will continue to want it going forward.
In any business, performance and salary expectations must be balanced against firm financial performance and managing labour costs.
Here are our 5 tips for approaching your annual salary review. We hope they help you get the result you are looking for.
1. Be Prepared
Always have documented evidence, be well-researched, informed about your organisation, industry and the wider market, and turn up on time! Prioritise your discussion and your preparation time to get the best possible result.
2. Collect and Present Your Evidence
It is vital to be across your personal numbers including billable hours, where you have tracked against your budget and KPI’s. You may be able to demonstrate that you won a significant client for the firm or have been in demand due to a growing reputation.
Consider how you performed during the pandemic and whether you were able to help improve company processes to save time or money.
Ensure that any glowing client feedback has been collated and is available for your manager to review.
3. Firm’s Financial Performance
The Australian legal industry overall weathered the Covid-19 storm well. There were, however, some areas of specialisation that were impacted financially more than others by reduced demand and subsequent economic downturn. Global players are still facing challenges in the face of infections and government restrictions. Be well informed of the firm’s total financial performance over the last 12 months. You should understand whether company revenue is on target.
4. Know your Market Value
Ensure you are across the current market salary being offered by competitors for similar skills and experience in your area of specialisation. This information may not be readily available online, so having an existing relationship with a specialist legal industry recruiter can be useful here.
5. Take on Constructive Feedback
A performance conversation intends to improve your performance, so do not forget to listen! Try to be open to feedback and take note of areas for improvement. Discuss your career goals and what you want to achieve in the future.
When the conversation is concluding, be clear on what happens next. Are you being considered for an increase?
If you feel that your job performance is impressive and your firm has been unable to meet your salary expectations, it might be time to consider a move.
Taking on a new role at a different firm will generally increase your salary, although not always significantly. There is more to a new role than financial considerations, your next opportunity needs to challenge you and should offer a long-term career path. It should offer stimulating matters and interesting clients. Leaving an organisation for more money should be a last resort. It should offer accessible and reputable Partners to work with and great company culture and values.
Weigh up your options and discuss how you are feeling with a trusted mentor or specialist recruiter. If you are staying where you are, double down on your efforts to make next year’s outcome better. If it is time to move on, get in touch!
If you are looking for a new role in the Legal Industry in Melbourne, Australia, then get in touch with us. Legal People is the gateway to your next career move. We are specialists in the Legal Industry and recruit Lawyers, Support staff and HR professionals. If you enjoyed reading this article, you can follow our Company Page on LinkedIn for regular updates. To browse our currently available roles click here.
