2013 Salary + Benefits Benchmarker. douglas scott. legal recruitment. So, where does the happiest person in legal work?
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1 2013 Salary + Benefits Benchmarker So, where does the happiest person in legal work?
2 Introduction The happiest person in legal is a 4 years PQE Solicitor working for a big city based Top 50 UK commercial law firm. His salary is just market rate but he gets a bonus and a full range of benefits including flexi time. Benchmarker data The data used in our 2013 Salary + Benefits Benchmarker is drawn from 2 sources: our annual survey and our recruitment database containing tens of thousands of candidates and recruitment contacts. In addition to the survey content we have crunched data from the 5,500 candidate registrations we made in 2012 and from over 2300 vacancies we were instructed on in that same period. Our survey data seems to be spot on in terms of distribution of respondents across private practice in England & Wales. We compared the distribution with statistics provided by the Law Society in their Annual Statistical Report of Where Solicitors work v where survey respondents work Annual Report 2011 DS Survey to 4 partners 5 to 10 partners 11 to 25 partners 26 plus partners Salaries, attraction and retention We have presented our salary data in high low style, broken down into regions but we have also identified trends across 4 areas of legal service. The data is raw, it is life; more experience does not always mean more money. Our respondents didn t just tell us what benefits they received they told us what they thought was missing from their package; they came clean on reasons for considering a move and also benchmarked their own salaries against what they believed was market rate. 26.6% took survey on a mobile device 19,094,600 of payroll data 40% of all respondents were male 60% of Solicitors surveyed were female In Business Support 75% were female 93% of Legal Secretaries/PA were female 40% of Paralegals were male Bespoke We are more than happy to drill down into our data and produce some bespoke data analysis across legal disciplines and sectors. Such is the quality and volume of the data we have gathered, it has not been possible to lay it all out in a 12 page document. If we don t have it we would love to put a plan in place to capture it. And the happiest person in legal? Well not an exact science but we thought it would be fun to drill down into the data and see who came out on top. He shall remain anonymous but we have been in contact. 0% 20% 40% 60% 80% 100% And finally...a big, big thanks to everybody who contributed.
3 Salary and bonus Our respondents were generally a happy bunch. We asked them how they felt their current salary compared to the market. The most common answer was market rate. Salary data There was not much of a difference through regional cross sections of the survey. However the data suggests that those working in General Practice did feel the least valued. All respondents v bonus 71% No bonus 29% Bonus 14.5% legal professionals described themselves as extremely underpaid. On the flip side 5 individuals declared themselves extremely overpaid. The majority of the underpaid group fee earners but the group included Legal Secretaries, Costs, Department Heads and Equity Partners. 71% of the underpaid group were female. Is Lockstep dead? Data suggests firms are gravitating towards merit based pay awards with some employing a mixture of both. It seems like supply and demand will shape pay in the future. If you received a bonus you are less likely than other legal professionals to leave for money reasons but more likely to leave for progression. Bonus According to our survey only 29% of legal professionals received a bonus last year. Once again there was very little variation across the regions; in London and the South East 31% received a bonus, 30% in the North West and 28% in Yorkshire and the North East. 42% in claimant RTA got a bonus 48% in defendant RTA got one 16% of respondents working in Family Law 35% of qualified fee earners received bonus For legal secretaries it was 15% 32% of services for business In Services for Individuals 22% 21% in SME dispute resolution 40% in large business dispute resolution 19% in multi branch private Practice 36% if you worked in a top 100 UK firm In Clinical Negligence it was 31%
4 Attraction and retention Benefits The benefits data we gathered provided some of the most interesting comparisons across cross sections of the legal community. Take sick pay for example with 59% of all respondents stating sick pay formed part of their overall benefits package. Percentage all respondents v employee benefits For Public Sector based lawyers 60 and legal support 50 staff this rose to 87% General 40 Practice came in at 56% just below 30 average Public 20 funded Criminal saw 25% 86% 10 in Defendant RTA 76% working 0 in a Top 200 environment 41% in Multi-branch Private Practice 42% in firms with 1 to 4 partners 57% where there are 11 to 25 partners 39% of those who felt they were extremely underpaid. 45% of all individuals surveyed received Private Medical Insurance (PMI). PMI is expensive though and one would expect that smaller, more costs conscious firms would not include this in their benefits packages. This is borne out by the stats. 65% of respondents working in a Top 100 environment receive PMI 41% in Boutique or niche a staggering 88% in defendant insurance had PMI compare that to only 52% in Claimant RTA and 22% in Services for Individuals 45% in Single Private Practice 57% in partnerships containing 11 to 25 members 26% in General Practice. Sick pay not SSP Critical illness Private medical cover Life assurance Gym membership Contributory pension Flexi time Free or subsidised parking Annual bonus Subsidised legal services Benefits on the wish list 25% of respondents received Subsidised or Free Parking as part of their benefits package. It seems obvious but it is interesting all the same: 37% of Yorkshire based candidates received the benefit compared to only 8% in London. We asked what benefit our respondents would like to see in addition to those contained in their current package. Our survey said...flexi-time, bonus, gym, PMI in that order. Bonus was the most popular amongst male respondents. Other interesting variations appear in the table below. Single branch employee Multi-branch employee Top 50 employee North East based London based Less than 5 PQE More than 20 PQE 1 Flexi Bonus Flexi Flexi Gym Bonus Critical Illness/PMI 2 PMI Flexi Parking Bonus Flexi Flexi LifeAss/ Bonus 3 Contributory pension Contributory pension Bonus Gym Bonus PMI
5 Attraction and retention Flexi-time appears high on the benefits wish list. Could flexi be the key to staff retention? Will we see more flexi with ABS and the increasing number of fixed fee legal services? The top reasons for considering a move were No surprise that 28% and 27% topped the list. 13% would not be considering moving and 10% cited work life balance. 9% were concerned about job security with 6% indicating their commute was an issue. 2.5% of the survey cited internal conflict. Difference across sections of the survey 28% of those working in US or International firms were happy where they were If you work in a Top 100 firm or In-house you are 4% more likely to move for money reasons Only 2.2% of London based respondents cited commute as a reason for leaving compared to 12.9% in the South West and 7.92% in Yorkshire 18% of respondents working in US or International firms cited work life balance as a reason for leaving Amongst the extremely underpaid 38% cited money 20% of respondents with more than 20 years experience indicated job security was an issue In privately funded Family 39% wanted more money 31% working in public funded Criminal cited work/life balance as a reason to move on 12.5% in Claimant RTA are concerned about job security as opposed to 2.5% in Defendant RTA What if any reason would you consider changing jobs? More money Progression Job security Commute Work/ life balance Internal conflict Happy where I am Other Flexi time focus Top 50 Top 100 Top 200 Intl or USA Boutique or niche Multi branch Single branch In house legal Public sector Business Support The graph below demonstrates the status quo; flexi time is common in the public sector but there is not much take up amongst the other legal entities. Flexitime - percentage respondents v total respondents v place of work Top 50 UK firm Top 100 UK firm Top 200 UK firm Multi branch private practice Boutique or niche Single branch In house Public Sector US or international Flexi features high on the wish lists but is more valued by women (51%) than men (30%). Those who worked flexi time were 5% less likely to move for money reasons but just as likely to move for reasons of progression. They were only 1% less likely to leave for work/life balance.
6 Qualified North West Single Multi UK 200 Top 100 Top 50 Boutique or niche 1 to 2 low to 2 high to 4 low to 4 high to 7 low to 7 high plus low plus high Contact Douglas Scott Legal Recruitment 5th Floor York House York Street, Manchester M2 3BB Douglas Scott Legal Recruitment The Corn Exchange Fenwick Street, Liverpool L2 7QL northwest@douglas-scott.co.uk The North West is no differ ent to any other region in that you will earn more working in Services for Business. Services for Individu als appears flat, more experience does not necessarily translate into better basic salary. Experienced PI and Insurance candidates and Solicitors working in General Practice can expect to earn more as they learn more. North West Salary Trends PQE General Practice PI and Insurance Services for Business and Organisations Services for Individuals
7 Qualified Yorkshire and North East Single Multi UK 200 Top 100 Top 50 Boutique or niche 1 to 2 low to 2 high to 4 low to 4 high to 7 low to 7 high plus low plus high Contact Douglas Scott Legal Recruitment No 2 Wellington Place Leeds LS1 4AP yorkshire@douglas-scott.co.uk Yorkshire and North East Salary Trends You earn more in Services for Business and can expect the gap to widen as you gain experience. Salaries in General Practice are almost intertwined with those in Services for Individuals. General Practice PI and Insurance Services for Business and Organisations Services for Individuals PQE
8 Qualified Midlands Single Multi UK 200 Top 100 Top 50 Boutique or niche 1 to 2 low to 2 high to 4 low to 4 high to 7 low to 7 high plus low plus high Contact Douglas Scott Legal Recruitment 43 Temple Row Birmingham B2 5LS midlands@douglas-scott.co.uk Midlands Salary Trends Starting salaries are not dissimilar and you can expect a steady increase in salary as you gain experience. The Midlands is similar to most regions in that salaries in Services for Business>PI and Insurance>General Practice>Services for Individuals. General Practice PI and Insurance Services for Business and Organisations Services for Individuals PQE
9 Qualified South West Single Multi UK 200 Top 100 Top 50 Boutique or niche 1 to 2 low to 2 high to 4 low to 4 high to 7 low to 7 high plus low plus high Contact Douglas Scott Legal Recruitment 43 Temple Row Birmingham B2 5LS midlands@douglas-scott.co.uk South West Salary Trends Although there is quite a difference between starting salaries across practice areas, that closes considerably as Solicitors gain experience. The salary gap across the business sectors ends up less pronounced than in any other region. General Practice PI and Insurance Services for Business and Organisations Services for Individuals PQE
10 Qualified London and South East Single Multi UK 200 Top 100 Top 50 Boutique or niche 1 to 2 low to 2 high to 4 low to 4 high to 7 low to 7 high plus low plus high Contact Douglas Scott Legal Recruitment 1 Berkeley Street London W1J 8DJ london@douglas-scott.co.uk Salaries in Services for Business are almost on another planet, PI and Insurance Solicitors can enjoy a similar rate of increase in salary but they will generally start off on lower pay. Perhaps a reflection of population density Solicitors working in Services for Individuals are more valued than in any other region leaving General Practice to bring up the rear. London and South East Salary Trends PQE General Practice PI and Insurance Services for Business and Organisations Services for Individuals
11 Paralegals Experience North West Yorks and NE Midlands South West South East 1 to 2 low to 2 high to 6 low to 6 high plus low plus high TM low TM high Experience 1 to 4 5 to to plus Avg 1 to 2 low to 2 high to 6 low to 6 high plus low plus high There are more high earning Paralegals in London and the South East than in any other region. Nationally high earners tend to work in PI/Insurance and Conveyancing.
12 Nationwide Legal Secretarial and PA Experience low high Mean Median 1 to to to to plus Salary Trends in Legal Secretarial High earners were concentrated in London and South East. 7% of Legal Secretaries and PA s received a bonus in 2012 compared to 29% of all respondents. 35% cited money as a reason to move jobs in the next 6 months. 1 to 4 partner firms 5 to 10 partner firms 11 to 25 partner firms 26 plus partner firms Experience
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