salary & employment insights 2012

Transcription

1 salary & employment insights 2012 LEGAL Australia/new Zealand

2 table of contents Introduction About Hudson legal maximising value: the recruitment imperative market trends salary tables research methodology hudson's thought leadership program

3 introduction Welcome to our 2012 Legal Salary & Employment Insights. We conducted a comprehensive study of 5,563 employers and 5,748 employees in Australia and New Zealand. We cross-referenced their answers with our own data to develop an industry salary guide that is both broad and deep. 1 In keeping with our aim of providing our clients and candidates with the most up-to-date industry insight and counsel, we ve overlaid that data with our analysis of the findings together with some key points to take into account when considering salary packages. Our recommendations are set in the context of the economically uncertain times that are fast becoming a fact of life for most developed nations. Over the next 12 months, the great test for organisations on both sides of the Tasman will be to equip themselves with the people they need to move through the next phase of their economic cycles. Despite uncertainty in the market we are still seeing optimistic but cautious hiring intentions across the profession in both countries 2 and accordingly we can continue to expect to see strong competition in the quest for the very best legal talent. In such a climate, it s vital to understand the significance of remuneration in attracting the right people to your organisation. Overpaying can be as risky as underpaying. No organisation wants to be represented and staffed by employees who are only there for the money. Salary is just one component albeit a very significant one in an attractive employee value proposition. We hope you will find our Salary & Employment Insights useful. As always, we welcome your feedback. Dean Davidson National Practice Director Legal Executive General Manager, Regional Australia 1 Figures quoted are for Australia and New Zealand combined unless stated otherwise. 2 The Hudson Report, Australia/New Zealand, January March australia/new zealand LEGAL salary & employment insights

4 about hudson legal Hudson Legal is a specialist practice within Hudson. A recognised leader in recruitment services in Australasia and internationally, Hudson understands the complexities and challenges of recruiting, hiring and managing legal professionals in a global economy. Hudson Legal s team of dedicated specialist consultants are trained to accurately assess your organisation's needs and help you discover exactly what you require for current and future growth. Drawing on personal and online networks, our consultants actively engage with a pool of top talent. Many have qualifications and experience in the legal profession, bringing a close understanding of the qualities needed to succeed. In addition, our range of proprietary tools and specialist talent management and recruitment expertise enables us to match legal professionals with the right culture and role, to ensure you are always building a team geared toward high performance. Working with over 70% of the top 100 asx-listed companies and many of Australia and New Zealand's leading law firms, our strong brand enables us to attract and select the right people to help you grow your business. 2 LEGAL salary & employment insights 2012

5 around two-thirds (66%) of all survey respondents are considering a change of jobs in Maximising value: the recruitment imperative Uncertainty is the new norm Uncertain is the word most often used to describe the global economy these days. The combination of sovereign debt issues overseas, volatile financial markets and instability of global equity prices is creating a particularly tough environment for business leaders, organisations and law firms all over the world. Australia is faring far better than many other economies. Although it faces pressure as a result of its strong dollar and so called two-speed economy, it remains relatively buoyant overall thanks to the mining and resources boom, although that seems to be easing. The prevailing mood in the legal sector is one of prudence: hiring intentions are positive but conservative and the pressure is on to do more with less. Nearly a fifth (18%) of hiring managers are under pressure to improve the quality of their hires, over a quarter (27%) are tasked with controlling the cost of hires and more than half (55%) say they are under pressure to do both. In such testing times, the challenge for organisations is not simply to stick to hiring budgets, but to maximise the value achieved from every dollar invested in human capital. The employee perspective The professional workforce on the whole however is on the move around two-thirds (66%) of all survey respondents are considering a change of jobs in One of the reasons for moving is dissatisfaction with pay. Our research shows nearly two-thirds (63%) of professionals believe they deserve a pay Better working conditions, more flexibility Strong leaders and boss I respect rise in 2012 and around one in five (21%) say they are not adequately remunerated for their contribution in the workplace. Organisations wanting to retain talented employees should note that almost a fifth (19.2%) would be motivated to stay by better career opportunities and 13.5% would stay for a work culture that would make them happier. However the biggest factor cited by well over a third (36.4%) of respondents was an increase in salary. Assuming that respondents are happy with their base annual salary, the survey revealed that the most important benefits for professionals across most sectors are bonuses including short and long term incentives (14.2%), private health insurance (14%), more annual leave (12%) and flexible working arrangements (11%). Which of the following would influence you most to stay in your current role for the next 12 months? Increased salary Better career opportunities Organisational values Work culture that will make me happy More seniority and responsibility than I currently have % of respondents australia/new zealand LEGAL salary & employment insights

6 the top three staff benefits offered by employers are flexible working arrangements (19.1%), bonuses (18.9%) and private health insurance (7.5%). the benefits bias Above and beyond base annual salary, the top three staff benefits offered by employers are flexible working arrangements (19.1%), bonuses (18.9%) and private health insurance (7.5%). Base salary remains the single most important means of rewarding employees. Employers without deep pockets might do well to tailor their benefits packages to individual employees since different people have different wants and needs. Hudson research revealed the following reward priorities beyond a competitive salary package: Gen Ys (20 31 yrs) are looking for: bonuses including short and longer term incentives (14.5%), private health insurance (14%) and more annual leave (13.3%). Less than 10% of respondents cited flexible working arrangements as a key element of their reward package. benefits offered as compared to what employees want. Bonuses long term incentives and short term incentives Increased superannuation Private health insurance Income protection insurance Death/disability insurance Increased annual leave (more than standard 20 days) Flexible working arrangements Company motor vehicle Car allowances Gym membership Paid maternity leave (above govt allowance) Paid paternity leave Employers giving Employees want Gen Xs (32 46 yrs) are seeking: private health insurance (14.1%), more annual leave (12.3%) and bonuses including short and longer term incentives (14.4%). Baby boomers (47 yrs+) want: increased superannuation contributions (15.5%), private health insurance (14.8%), bonuses including short and longer term incentives (13.5%) and flexible working arrangements (10.6%). Others % of respondents 4 LEGAL salary & employment insights 2012

7 market trends The industry is undergoing a period of rapid structural change, as international firms seek to establish themselves in the local market, and large Australian firms adjust their market positioning to align with international partners. Amidst these changes, those firms which remain independent are focused on offering a unique value proposition, both to clients and to their prospective employees. The ongoing development of resources and infrastructure projects is driving continued growth within these sectors. Despite growth within the broader industry, demand has cooled slightly in the mining sector, as significant projects are delayed due to falling commodity prices and increasing costs. The oil and gas industry, however, remains a key growth industry (particularly in Western Australia and Queensland), where demand for lawyers with skills in both onshore and offshore projects, construction and petroleum contracts remains high. Key trends: Salaries have remained generally stable and becoming more consistent. The disparity in remuneration between top-tier and upper mid-tier, international and boutique firms is disappearing. Despite the strong demand for lawyers with high quality training and experience, firms and organisations are increasingly unwilling to pay a significant premium to attract top talent. Private practice firms are particularly focused on maintaining parity between lateral hires and existing staff, as perceived disparities increase attrition rates and create upward pressure on salaries across the firm. Firms and organisations are also generally unwilling to compromise on technical skills or experience in areas of high demand. Given tight project timeframes and high workloads at senior levels, firms and organisations are increasingly unwilling or unable to invest in training lateral hires who cannot hit the ground running. Construction remains a key area of demand, and candidates with both non-contentious (front-end) and contentious (back-end) experience are highly sought-after. The shortage of candidates within private practice continues to be exacerbated by demand from in-house organisations servicing the infrastructure and resources industries. Construction lawyers are also in demand by these organisations to fill key commercial and contract management roles. As a consequence of the ongoing growth within the construction, resources and infrastructure sectors, demand for employment, industrial relations and occupational health and safety lawyers has soared, as market participants seek specialist legal advice to manage complex blue-collar workforces, labour hire contracts, industrial disputes and serious workplace incidents. australia/new zealand LEGAL salary & employment insights

8 many boutique practices are merging with large international firms. Those which remain, generally pay above market salaries. Despite the downward trend within the financial services sector generally, demand for banking and finance lawyers remains consistent, as Australian and international banks focus on securing high-value, complex deals. Lawyers with project finance experience are particularly sought-after. After a slight decrease in demand during the first half of 2011, demand for litigation (especially insolvency and reconstruction) lawyers has increased significantly. This growth has been fuelled by an increase in disputes and corporate insolvencies arising from the challenging economic conditions facing small to medium enterprise and the manufacturing and industrial sectors. Similarly, demand for insurance litigation lawyers remains high, however candidates can expect salaries to remain stable, with continuing downward pressure on fees by large insurers and consequent profit squeeze on specialist defendant insurance practices. As a result of continuing uncertainty in Europe, there remains a consistent flow of mid to senior level lawyers returning to Australia with valuable experience in corporate and commercial law including M&A and private equity financing deals. Such professionals are highly sought-after, particularly by top-tier law firms. Demand for high quality corporate/ M&A lawyers generally remains stable, however with the downturn in transactional activity during late 2011 and the first half of 2012, candidates who do not have blue chip experience with leading Australian or international firms may find it more difficult to secure a role. Demand for property and development lawyers has generally increased, particularly at Senior Associate-level, however environment and planning has cooled significantly within private practice. Environment and planning lawyers seeking to pursue an alternative career pathway may, however, find their skills in demand within the resources sector, particularly within the project approvals, land access and environmental compliance spaces. Across the board, in-house salaries are stable and demand remains strong for lawyers with five to eight years post qualification experience. Increasing numbers of firms are introducing (or reintroducing) Associate-level as a stepping stone between lawyer and Senior Associatelevel, or retitling lawyers as Associates for consistency with international partner firms. 6 LEGAL salary & employment insights 2012

9 most law firms and in-house legal teams prioritise quality over cost when it comes to recruiting. Salary expectations are very high at junior levels: less senior lawyers continue to have high salary expectations. This is particularly evident among those with three to four years post qualification experience who frequently seek salaries of up to $ K, a figure well above the typical market rate. Formal bonus and incentives schemes are becoming more common, particularly at Senior Associate-level and above. Many legal professionals at mid-level and above are negotiating remuneration packages incorporating a definitive bonus component, rather than the discretionary bonuses which have been common in the past and we expect this trend to increase in An increasing number of firms and organisations are providing additional (non-financial) incentives, including gym memberships, smart phones etc. In general, most law firms and/or in-house legal teams prioritise quality over cost when it comes to recruiting. Organisations are digging deeper: firms are also embedding new elements in their reference and background checking procedures to understand more fully the technical skills and potential cultural fit of new hires. Clients value specialist local knowledge: independent local firms remain the preferred choice for some clients, particularly in the resources sector where top-tier firms compete against local practices with profound industry knowledge. Are you concerned about losing high performing employees in 2012? 33% Employers are scrutinising potential employees more carefully, with an increasing number of firms introducing psychometric testing as a standard part of the recruitment process for mid to senior level appointments. Yes No 67% australia/new zealand LEGAL salary & employment insights

10 Most in-demand roles and skills Lawyers with energy and resources expertise Construction lawyers, both those with contentious and non-contentious experience Easing demand for Corporate lawyers in Victoria and New South Wales Environment and planning lawyers Mid to senior level lawyers with uk experience (particularly in M&A and private equity financing in the mining states) Lawyers with strong commercial experience including litigation skills Insurance lawyers with defendant professional indemnity, public liability and product liability experience Insolvency specialists Lawyers with experience in protecting intellectual property Technology specialists, particularly those with experience in corporate and government IT and telecommunications contracting Lawyers with experience in workplace relations including occupational health and safety We developed Hudson Legal Salary & Employment Insights with the aim of providing clients and candidates with the most up-to-date industry insight and advice. If you would like to find out more about how Hudson can help you source, manage and retain the best talent for your business, please contact: Alternatively, if you are considering looking for a new role, let us help you find an employer who will recognise and appropriately reward you. Please contact your nearest Hudson office to arrange a confidential discussion with one of our legal recruitment specialists. We look forward to working with you. 8 LEGAL salary & employment insights 2012

11 salary tables

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13 act nsw QLD vic WA TOP TIER ANNUAL SALARY 2012 AUD ' year PQE years PQE years PQE years PQE years PQE years PQE Not SA sa SA sa sa4/special Counsel Salaried Partner MID TIER 0 1 year PQE years PQE years PQE years PQE years PQE years PQE Not SA sa SA sa australia LEGAL salary & employment insights

14 act nsw QLD vic WA MID tier (cont.) ANNUAL SALARY 2012 AUD '000 sa4/special Counsel Salaried Partner BOUTIQUE 0 1 year PQE years PQE years PQE years PQE years PQE years PQE sa SA sa sa4/special Counsel Salaried Partner IN-hOUSE (GENERAL) 0 1 yrs PAE/PQE yrs PAE/PQE yrs PAE/PQE yrs PAE/PQE yrs PAE/PQE yrs PAE/PQE yrs PAE/PQE LEGAL salary & employment insights 2012

15 act nsw QLD vic WA IN-hOUSE (GENERAL) (cont.) ANNUAL SALARY 2012 AUD '000 Deputy General Counsel General Counsel government QLD government act nsw PO yrs PAE/PQE po yrs PAE/PQE po po so so ses ses ses yrs PAE/PQE yrs PAE/PQE yrs PAE/PQE yrs PAE/PQE yrs PAE/PQE ses ses government vic VPS vps vps vps vps vps Senior Technical Specialist All Government figures above are exclusive of super. Please note: Salary ranges are based on information provided by Hudson clients, candidates and other sources and as a result are approximate guides only. They relate to base salaries including superannuation but do not include things like bonus/incentive schemes/stock options. Further they incorporate placements across both small to medium companies (defined as having a turnover of less than $100 million) and large companies (defined as having a turnover of more than $100 million). Roles marked. For non-government roles, they indicate insufficient placement data to represent the market adequately. australia LEGAL salary & employment insights

16 research methodology Hudson conducted quantitative research into salary and employment insights of employers and employees across Australia and New Zealand. In addition to the responses collected and analysed, we also drew on placement data across the first half of Qualitative information was gathered by our specialist recruitment consultants through conversations with their clients, and by drawing on their extensive knowledge of placements made across the Hudson Legal Practice. A total of 5,563 employers and 5,748 employees across Australia and New Zealand were sourced from the Hudson database, and interviewed online regarding their experiences and views on salary and employment expectations and key issues. Employers and employees each received distinct survey questions. totals All Legal employers 5,563 All Legal employees 5,748 Additional client survey (extra questions) LEGAL salary & employment insights 2012

17 hudson's thought leadership program As an industry thought leader, Hudson produces a wide variety of white papers, conducts specialist forums and regularly contributes to media on HR and employment trends. Here s a selection of some of the research we produced last year. If you wish to register for a copy of this year s research, please visit au.hudson.com/thought-leadership or nz.hudson.com/thought-leadership the hudson 20:20 series the hudson Industry Leaders Series The Hudson report The Hudson Report details employment trends and is a key economic indicator gauging employer sentiment across the nation. Our renowned quarterly employment survey evaluates the job market and reports on job projections by industry in each region. For details, see au.hudson.com/hudson-report or nz.hudson.com/hudson-report Released annually, the Hudson 20:20 Series is Hudson's flagship research publication. The white paper series investigates talent management issues that have critical impact on business performance. Last year s Hudson 20:20 Series asked the question of how and why current recruitment procedures are failing organisations and recommendations for the ways they can be improved. The report also contained new research findings from Hudson that demonstrated how current hiring practices are impacting on organisations quality hires and offers practical solutions for improvement. To view the report visit au.hudson.com/hudson-2020 or nz.hudson.com/hudson-2020 Hudson s A&F and ICT Industry Leaders Series delved into the key skills-related issues facing professions today. They each brought together C-suite executives from across Australia and New Zealand in business roundtables to discuss and gain an insight into what is influencing their profession. To access the report go to au.hudson.com/ils or nz.hudson.com/ils australia LEGAL salary & employment insights

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19 contact us To discuss the Salary & Employment Insights or your recruitment needs in more detail, please contact your Hudson recruitment consultant or us on Adelaide Auckland Brisbane Canberra Christchurch Newcastle Greater Western Sydney Melbourne Mount Waverley Perth Sydney Wellington au.hudson.com nz.hudson.com