{"id":3197,"date":"2024-11-18T12:06:39","date_gmt":"2024-11-17T23:06:39","guid":{"rendered":"https:\/\/insource.mynewsite.nz\/?p=3197"},"modified":"2024-11-20T11:39:38","modified_gmt":"2024-11-19T22:39:38","slug":"australian-law-firms-hiring-as-many-lawyers-as-they-are-losing","status":"publish","type":"post","link":"https:\/\/insource.mynewsite.nz\/australian-law-firms-hiring-as-many-lawyers-as-they-are-losing\/","title":{"rendered":"Australian law firms hiring\u00a0as many lawyers as they are losing\u00a0"},"content":{"rendered":"\n

Quarter 3 sees similar trends as quarter 2 for top Australian law firms recruitment in 2024<\/strong> <\/h2>\n\n\n\n

Quarter 3 of 2024 saw the top Australian law firms hiring as many lawyers as they were losing <\/strong>with a 1:1 ratio.\u00a0 This is an increase from quarter 2 which saw 0.8 lawyers hired for every 1 lawyer<\/a> departing.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

Hires<\/strong> <\/h3>\n\n\n
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The largest source of hires for the top six firms were the top 50 firms (excluding the top 6) (33%) and in-house (22%), with an additional 20% coming from other top 6 firms.   <\/p>\n\n\n\n

Intriguingly, these numbers are very similar to quarter 2: <\/p>\n\n\n\n

Source of hires<\/strong> <\/td>Quarter 3 (2024)<\/strong> <\/td>Quarter 2 (2024)<\/strong> <\/td><\/tr>
Top 50 firms (excluding top 6 firms) <\/td>33% <\/td>40% <\/td><\/tr>
In-house <\/td>22% <\/td>21 % <\/td><\/tr>
Top 6 firms only <\/td>20% <\/td>14% <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We\u2019ve often heard the big firms comment that they recruit offshore, and the local market isn\u2019t a large source for hires for them.  However, the Insource data clearly shows that the top firms are still hiring locally with 82% of hires in quarter 3 coming from the domestic market.  Also, as explained further below, of those hired from overseas 42% were from just across the Tasman in New Zealand.  <\/p>\n\n\n\n

Alumni hires make up 22% of hires in quarter 3, which is the average of alumni hires across quarter 1 (30%) and quarter 2 (13.3%).   <\/p>\n\n\n\n

Continuing the trend from earlier this year, the most sought-after practice areas continue to be corporate and commercial, and litigation and dispute resolution \u2013 followed by finance and property and real estate.   <\/p>\n\n\n\n

The most sought after PAE group also remained the same with intermediate level lawyers at 3-7 years PAE the most sought after (representing 47% of new hires).  The next sought after PAE brackets were 0-2 years (29%) and 11+ years (18%). <\/p>\n\n\n\n

New Zealand lawyers were half of overseas hires<\/strong> <\/h3>\n\n\n\n

While quarter 2 and quarter 3 saw similar rates of hiring from the various sources, the main difference is that hires from overseas increased from 3% to 12%.  Almost half (42%) of these overseas hires were taken from top NZ firms (Chapman Tripp, Bell Gully, MinterEllisonRuddWatts, Buddle Findlay and Russell McVeagh).   <\/p>\n\n\n\n

This aligns anecdotally with an increase in Australian recruitment activity in New Zealand, with Australia is viewed as an attractive option for NZ lawyers due to comparatively larger salaries and a generally more positive economic outlook.   <\/p>\n\n\n\n

Departures <\/strong> <\/h3>\n\n\n
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For talent departing the top 6, we also see continuing trends, with most taking in-house roles (43%), taking on positions in a competing top 6 firm (14%) or top 50 firm (18%) and with a steady flow of talent heading overseas (10%). Again, these numbers are similar to quarter 2: <\/p>\n\n\n\n

Lawyers departed to<\/strong> <\/td>Quarter 3 (2024)<\/strong> <\/td>Quarter 2 (2024)<\/strong> <\/td><\/tr>
In-house <\/td>43% <\/td>39% <\/td><\/tr>
Top 50 firms (excluding top 6 firms) <\/td>18% <\/td>18% <\/td><\/tr>
Top 6 firms only <\/td>14% <\/td>10% <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The rate of these top-drawer lawyers heading overseas remains steady at 9%.  <\/p>\n\n\n\n

Therefore when comparing those joining and those leaving the stats show Australian law firms hiring as many lawyers as they are losing. Which means an awful lot of legal recruitment expenses.<\/p>\n\n\n\n

Top 6 talent happy to move to mid-size firms<\/strong> <\/h3>\n\n\n\n

There can often be a reluctance from mid-sized firms to try to tap the big firms for talent because they wouldn\u2019t be successful given the salary difference. However, we can see here that firms outside of the top six, including mid-tier firms that fall within the top 50, are seeing success in moving talent from the top six firms. <\/p>\n\n\n\n

We\u2019d humbly suggest that salary is not everything when it comes to attracting talent.  <\/p>\n\n\n\n

Australian law firms hiring as many lawyers as they are losing. A renewed focus on Retention: EVP, flexibility and the Right to Disconnect <\/strong><\/h3>\n\n\n\n

The Insource data for quarter 3 continues to support the proposition that the talent leaving the top six law firms are seeking a change in firm\/role rather than overseas opportunities.  As we commented in our insight on quarter 2 moves<\/a>, these lawyers are not heading overseas in large numbers and are instead opting for domestic roles for either a change of lifestyle (i.e. in-house) or into another top firm.  <\/p>\n\n\n\n

While there are some indicators of a softening in the market (from an employee to an employer market), this hasn\u2019t really been felt on the ground by HR professionals in law firms.  Consequently, to retain your current top talent and attract other talent there needs to be a focus on a firm\u2019s employee value proposition (EVP). As Angela Sharpe (Head of People and Culture at Swaab) said in a recent HR Leader podcast<\/a>: <\/p>\n\n\n\n

I think what businesses need \u2026 is really to invest in an EVP (so an employee value proposition) to find out\u2026what it is they can offer to an employee over and above a salary.  And find out from candidates what it is that they want?  Is it salary, is it great working conditions, is it flexibility, is it learning and development, all of those things.  And I think investing in a robust EVP we are able to respond to a candidate or employer market regardless of where the balance lies. <\/em> <\/p>\n\n\n\n

The recent Right to Disconnect laws in Australia will also impact law firms\u2019 ways of working as they aim to ensure that employees have time to rest and recharge without work interruptions.  Angela Sharpe also commented that the challenge is how does the legal profession manage this when being a lawyer is not a 9-5 with remuneration packages acknowledging that work \u2018after hours\u2019 is part of the job. <\/p>\n\n\n\n

Melanie Vairawanathan (founder of Melmark Law)<\/a> also recently commented, when discussing the Right to Disconnect laws, that:  <\/p>\n\n\n\n

\u2026what law firms need to remember is\u2026 if you foster that workplace that is\u2026inclusive and accommodating of the needs of staff then there\u2019s a better retention rate\u2026you\u2019re only as good as your staff. <\/em> <\/p>\n\n\n\n

These laws are a \u201cmoment for potential growth<\/a>\u201d and another opportunity for  firms to again consider how they retain and attract top talent.  <\/p>\n\n\n\n

Insource identifies quality talent for you<\/strong> <\/h3>\n\n\n\n

Australian law firms hiring as many lawyers as they are losing, means there needs to be a focus on retention as wall as recruitment. As law firms focus on improving retention rates and ensuring their firm is attractive to top talent, Insource customers have an advantage in being able to quickly identify that talent and get to the front of the queue for the best talent more quickly.  <\/p>\n\n\n\n

With a searchable database of up-to-date profiles of more than 100,000 lawyers with a New Zealand or Australian practising certificate, Insource gives our customers complete visibility of the entire talent pool of lawyers in seconds.  Law firms can quickly identify the right candidates for live vacancies, build future talent pipelines and get insights into the movement and composition of talent.  <\/p>\n\n\n\n

Oliva Holmes (Chief People Officer at Macpherson Kelley) has commented that one of the benefits their partners have seen from their use of Insource is that: <\/p>\n\n\n\n

The partners have really appreciated understanding the depth or lack of depth for some of the skill areas across our practice areas. Being a data driven firm to be able to have that evidence has been really helpful for us<\/em>,  <\/p>\n\n\n\n

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