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City law firms announce new salary increases for NQ lawyers
Mayer Brown, Travers Smith, and others raise salaries, intensifying competition in the legal market.
The ongoing battle for salaries among City law firms intensifies with new announcements.
City law firms engage in intense salary competition
Several City law firms have announced salary increases for newly qualified (NQ) lawyers, reflecting a fierce competition for talent. Mayer Brown has raised its NQ pay to £150,000, matching offerings from top firms in the sector, effective July 1. Travers Smith also increased its base salary for NQs from £120,000 to £130,000, with a potential bonus of up to £20,000. Meanwhile, Mishcon de Reya plans to raise salaries for its NQs from £95,000 to £100,000 starting in September, emphasizing that this change applies to all its offices. RPC announced varied increases, dependent on practice area, while Shoosmiths revealed similar adjustments across its London and regional offices. This trend of rising salaries is a response to market pressures, yet firms are cautious not to disclose comprehensive details about salaries for other associates.
Key Takeaways
"Our people are our greatest asset and we have considered extensively how to ensure we best reward all of our people."
Vanessa Dewhurst of Mishcon de Reya emphasizes the firm's commitment to employee compensation.
"Base salaries at NQ level have increased in response to that market pressure."
Shoosmiths acknowledges the shift in salary dynamics prompted by industry competition.
The rising salaries in City law firms highlight a broader trend of escalating competition. As firms strive to attract the best talent, their reluctance to share salary figures for other associates raises concerns about potential pay disparities. This situation could lead to increased tension among colleagues, as young lawyers earn significantly more than their peers at different levels. Moreover, the booming NQ salaries observed in the market can create a pressure cooker situation, challenging firms to balance their compensation structures to avoid pay compression. Ultimately, the battle for attracting and retaining talent is reshaping the landscape of legal salaries, but at what cost to internal equity?
Highlights
- Salaries are climbing as firms vie for the brightest legal talent.
- Could pay compression create tension among lawyers?
- NQ salaries soar, but what about the rest of the associates?
- Is inclusion in pay rises a genuine goal or mere PR?
Concerns over pay disparities among legal professionals
The intense competition for newly qualified salaries could exacerbate pay compression issues, creating tension among different levels of associates. The revelation that firms are reluctant to disclose salary information for other associates raises flags about internal equity, potentially leading to dissatisfaction and turnover.
The salary arms race among law firms shows no signs of slowing, with future implications for the industry.
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