Lawyers salaries have become stable over the last year, marking the end of the post pandemic salary boom, according to the latest data by legal recruitment company Realm Recruit.
As part of its annual salary research, Realm Recruit found that on average, pay for legal professionals has been outpaced by inflation and has increased by two per cent since 2023.
However, firms are still willing to pay more for lawyers with the ‘right level of experience’, according to the research. Across nearly all legal practice areas, salaries have increased for those with between four and six years of post-qualified experience, with the biggest increases within private family and Court of Protection. These lawyers are often sought after by firms, as they can competently bill, manage client relationships and coach junior colleagues, but don’t expect a huge salary and partner title.
Salaries for non-qualified fee earners have also risen, particularly in private client, as firms recognise the value that these individuals can bring to a team.
Senior lawyers and partner salaries continue to rise, with the biggest increases in catastrophic personal injury (15%), litigation (9%) and private client (12%).
Realm Recruit has recently published the results of its salary research in full along with recommendations for law firms in its Salary Guide for Spring 2024.
The firm’s research was based on placement data from the last 12 months. It was supplemented by insight from Realm Recruit’s practice-area specialists.
Kelly Reid, Associate Director at Realm Recruit, comments:
“While pay remains a top priority for lawyers looking to move, economic pressures and rising overheads mean that law firms can no longer afford to offer the pay increases we saw in 2021/22 if they are to reach their profitability targets.”
“While lawyers can still achieve a pay rise by moving firms and there will still be a swathe of lawyers who are vastly underpaid for the work they do, it is much less common to see someone move for a 15% salary increase in 2024.
“Lawyers who are keen to increase their earnings should take a long-term approach and evaluate whether they are working at a firm with a strong growth trajectory where they can demonstrate their value in helping to facilitate that growth.
“It’s important to remember that pay is just one piece of the puzzle (albeit an increasingly important one). In today’s market, law firms should look carefully at their whole Employer Value Proposition (EVP) to compete for prospective talent on factors other than salary.”
