BS LegaMid-year - Flipbook - Page 5
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Key themes in in-house legal &
company secretarial recruitment
LEGAL & COMPANY SECRETARIAL | RECRUITMENT MARKET UPDATE 2024
The impact of private practice salaries
For nearly a decade, starting salaries for newly
qualified lawyers have seen significant year-onyear increases at private practice firms. A lawyer
beginning their career at a US firm can now expect
to earn the equivalent of £180,000 annually, while top
UK firms are paying approximately £150,000.
This trend is having a huge impact on the supply of
good candidates to in-house legal functions, as many
departments are unable to keep pace with private
practice salary inflation.
In the past, moving in-house may have come with
a pay bump, and even recently lawyers could have
expected a small but palatable reduction in their salary.
Today, accepting an in-house legal job means taking a
substantial financial hit, so newly qualified lawyers are
persuaded to stay in private practice for longer.
There are still many compelling reasons to move inhouse, however. Lawyers often enjoy greater variety
in workloads, a better work-life balance and the
chance to see projects through from start to finish.
Meanwhile, private practice can be an intense working
environment that takes a toll on mental health, meaning
the route to partnership is not appealing to everyone.
Budget restrictions hamper hiring
In addition to private practice salaries creating hiring
challenges, in-house legal departments are also facing
broader budgetary pressures. The average budget was
slashed by 12% in 2024, according to recent research.
Restructuring on the rise
In-house legal departments see relatively little
movement at the top end of the market. As such, GCs
don't change jobs often, and this can lead to a lack
of opportunities for other senior lawyers who wish to
advance their careers.
As a result, 95% of GCs claim they have inadequate staffing
levels and 90% say they are worried they'll be unable to
Many organisations are therefore seeking ways
invest in the people and resources they need to meet their to restructure in-house teams to allow for more
organisation's legal and regulatory obligations.
responsibility and progression within departments.
This has led to the creation of roles beneath the GC
Unfortunately, UK GCs often struggle to secure enough
level that provide real leadership and management
money to build their in-house teams because – unlike in
opportunities, along with a grander title.
the US – legal is typically viewed as a second-line advisory
function. They are therefore treated as a cost centre, rather There are merits to this approach, as people are eager
than an integral part of the organisation's front line.
to be seen as progressing their career, and a new job
title can enhance engagement, at least in the short term.
With ever-growing workloads, GCs must often rely on
private practice firms to alleviate some of the burden.
Within co-sec teams, there continues to be discussions
While this arrangement solves the immediate problem, it over whether a corporate legal background is
only increases the demand for private practice services, preferred within the profession or not. These decisions
driving salaries at these firms even higher.
are usually driven by the type of business, level of hire
and background of the current team.
To combat this, GCs need to ensure they are well
represented on the executive committee and, ideally, the However, it remains difficult for co-sec candidates
Board. It is only through exposure at this level that they
to move between listed and non-listed companies.
can demonstrate the value of a strong in-house legal
This is especially true for those trying to switch from
team and secure the budgets and headcount to offer
non-listed to listed due to the slightly more complex
meaningful departmental growth.
requirements of the latter.
