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  4. Senior in-house earnings jump, English survey reports

Senior in-house earnings jump, English survey reports

21st June 2016 | careers

Senior in-house lawyers south of the border have seen earnings rise by more than £8,000 over the past year, according to survey findings released today.

Legal and compliance recruiter Laurence Simons found that average total earnings in the sector (basic salary and bonus) now stand at £165,190, or £8,130 (5%) higher than the 2015 figure of £157,060.

Basic salaries for senior in-house lawyers over the last 12 months have increased by 12% from £112,920 to £126,100, but this has been partly offset by lower bonuses, which currently average 31% of salary as compared with 39% last year.

The survey contrasts its findings with the average UK accountant's total earnings of £78,010, and the average UK salary of £27,600.

Clare Butler, global managing director at Laurence Simons, commented: “High spending on the salaries of top in-house lawyers is not merely corporates splashing the cash, but represents a structural shift in their approach to the provision of legal services. While legal is mission critical, most corporates don’t have huge budgets to spend on elite firms. The result of this is a greater focus on building stronger and broader in-house teams, which means recruiting lawyers from private practice at a premium.

“As a result of this competition, salaries for senior in-house lawyers are increasing. While a big salary for an experienced lawyer is a significant outlay, it is an important investment that can save a company huge amounts of money in fees and costs.

“The paradigm shift in the provision of legal services has had a knock-on effect for in-house lawyers, and we are seeing pronounced demand for a more predictable and stable income that isn’t tied to the performance of their employer. With demand in their favour, they’re in a strong position to not only dictate how much they are paid, but also the structure of their remuneration.”

However money is not necessarily the in-house lawyers' primary motivation. The top reason reported by lawyers for leaving their previous job, the survey found, was for better career development prospects, with 29% departing for this reason, compared with 22% leaving for a better salary and 11% for better bonus prospects. A further 15% moved on for both a better work-life balance and a better cultural fit. That said, senior in-house lawyers would reportedly look for a premium of £22,700 when moving jobs – which equals 18% of their basic salary, a figure that has remained broadly flat since the end of the recession.

More lawyers would consider moving jobs, with 76% either potentially or definitely open to a move – up from 72% last year, including 28% who say they are actively looking for a job.

Ms Butler observed: “While an improved package is instrumental to lawyers when it comes to moving jobs, career development remains their priority. HR teams looking to retain their best talent this year should be aware that impressive salaries alone will not allow keep hold of their high performers in an increasingly competitive market; even the most senior of lawyers want to feel like they are growing in a role.

“There is clearly an appetite among senior in-house lawyers for a move this year too, with fewer willing to rule out a move compared to a year ago.”

 

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