Navigating the Emerging Trends of Legal Industry Recruitment

We recently sent Legal People’s very own Sharon Henderson to present to the ALPMA HR Workshop on emerging legal industry recruitment trends. Read on for the highlights and key takeaways for consideration and implementation at your firm!

 The first quarter of 2023 saw a rise in the national job index, reflecting a 2.8% increase in job opportunities. Inflation in Australia remains high at 6.3% and real wages are not expected to grow until next year. In Victoria specifically, the demand for talent remains strong, and job advertisement volumes are 35% higher than pre-Covid.

The local legal industry continues to undergo a period of significant growth in demand for legal services. Simultaneously, our current recruitment market continues to be very candidate short. This has meant that employers are having to adapt in the way they approach recruitment to fill available roles and ensure their preferred candidate(s) chooses their firm over competing offers. 

The Legal Industry Market Snapshot

A recent survey by ALPMA found that 60% of law firms are planning to grow their numbers this year. A further survey by Lawyers Weekly found that 28% of legal professionals were planning on leaving their employer in the next 12 months. Some were heading off to another firm (16%), 3% were heading in-house, 3% wanted to move into government, and the others were going to either stop practising or start their own firm.

In this market, it is a rarity to find lawyers or legal support staff who are unemployed. If they are without a job, it is often due to personal choice. We are finding that good quality candidates are all managing competing offers. Employers need to be very quick if they want to fill a role.

These are the 7 factors that are interplaying in the recruitment market for lawyers and legal support staff:

1.   Recruitment Doesn’t Stop at the Job Offer

Once you have selected your preferred candidate and they have signed the letter of offer, there is still work to do. Even if they have signed a contract, they can still be wooed by other (or their existing) organisations and change their mind. We encourage our clients to pay careful attention to the engagement of a new hire, right up until the end of their probation period. Head hunting is rife!  Ensure that you have regular touch points throughout their notice period. Have coffee, organise a meet-the-team and keep in close and regular contact with your new hire.

2.   Notice Periods are Getting Longer

We are also finding that notice periods are getting longer. Some senior lawyers are having to give 2-3 months’ notice. Even in a support role, a notice period can be 5 weeks. Notice periods are being strictly adhered to in the current market and an early release is unlikely. Roles are hard to fill, and employers are hanging onto staff with both hands. It is for this reason that we are starting to see some of the larger law firms proactively recruit for future available roles. This talent pipeline management is based on the knowledge that they will lose some team members due to natural attrition and just makes good sense.

3.   Sign-on Bonuses

It’s official. In the Victorian legal market, under current conditions, a sign-on bonus is popular for senior level appointments where there are competing offers at play. At a Senior Associate level and above they are roughly between $5-15K. They are either paid on commencement or at the end of the first 6 months. Many have a clawback clause that covers leaving in the first 12 months of employment.

4.   Emphasis on Diversity and Inclusion

The demographic of the legal profession is changing over time. Did you know that there are 90,329 solicitors in Australia nationally? And that over 55% of these are women!  In fact, 86% of new lawyers are women. Females are charging through the ranks of the legal profession and are selecting employers carefully based on diversity and inclusion policies. They are also checking whether claims of diversity are reflected in the ranks of leadership within a firm. Law firms will have to focus on the retention of these young women to ensure that they make up a noticeable percentage of the partner representation in the future.

Employers in Victoria's legal industry are already prioritising diversity and inclusion within their organisations as part of retention and attraction strategies and because it is good for productivity and their bottom lines!  Recognising the value of different perspectives and experiences, law firms and legal departments are beginning to seek candidates from diverse backgrounds.

5.   Work Practices Should be Flexible

Ensuring that your business has flexible work practices will help with retention and talent attraction. At Legal People almost all of our candidates are looking for flexible working arrangements, with the most popular being a hybrid 3 days in the office, 2 days from home. Even in the support sector, legal secretaries are wanting a 3:2 arrangement having proven they can work remotely during Covid.

Some firms are attempting to entice employees back to the office with free breakfasts, special lunch days and the lure of your own desk. (Rather than a hotspot!)

6.   Evolving Demands and Specialisations

The areas we are seeing strong demand for at the moment are as follows:

·        Employment Law and Workplace Relations at an Associate and Senior Associate level

·        Personal Injury Law on the plaintiff side,

·        Abuse Law due to retrospective legislative changes,

·        Insolvency

·        Commercial Litigation

·        Wills & Estates

·        Tax at Associate and Senior Associate level

Candidates with expertise in these areas will find themselves in high demand and employers should take this into consideration and move very quickly when making offers.

7.   Candidates are Very Informed

More than ever before, candidates are well researched and informed about potential employers. They take their due diligence very seriously. They are comparing leave policies, company values, pro-bono community involvement and career development opportunities between prospective employers. Organisations with a succinct one pager that outlines their employee value proposition are highly regarded by candidates.

The candidate-tight legal industry recruitment landscape in Victoria presents several challenges for employers. To gain a competitive advantage when looking to attract talent to your organisation, a firm needs to be proactively focussed on diversity, flexibility, competitive salaries (including sign-on bonuses where relevant). Organisations also need to clearly articulate their employee value proposition in a way that it is easily discovered on the internet and by their word-of-mouth reputation.

By embracing these interplaying factors and emerging trends, the legal industry in Victoria will continue to thrive, attracting and retaining top talent while fostering an environment of continued industry growth.

Should you need help recruiting talented legal professionals for your business, or a confidential career discussion please get in touch at [email protected]. We are specialists in the Legal Industry. We recruit Lawyers, Support staff and HR professionals in Melbourne, Australia.