Navigating 2024: Salary trends in private practice and public sector law
As legal professionals prepare for another year of challenges and opportunities, understanding the forecast for salary trends, combined with the growing importance of flexibility and career advancement, is paramount for legal teams looking to expand.
In 2024, the legal sector is poised for transformation, with both private practice and public sector employers witnessing shifts in compensation structures and workplace dynamics, resulting in a shift in the overall compensation package required to attract and retain top legal talent.
At Sellick Partnership, we find ourselves in a unique position: witnessing both sides of the profession moving to the other for different motivations. Our private practice team speak with candidates in public sector roles, that are wanting a better salary, and our public sector team speak with candidates that require improved flexibility – amongst other reasons.
Here we have highlighted some of the top trends we are witnessing right now, as well as what we expect in the coming months within both private practice and public sector teams.
Top trends for legal private practice
This year we could see a number of changes for private practice law firms that have the ability to reshape the traditional concepts that were once expected in the profession.
Flexibility and hybrid working
This is something that can no longer be ignored within the private sector of the profession. Many of the candidates we speak to would be willing to take a lower salary if they’re offered a level of flexibility, or a hybrid working model that provides a healthier work-life balance.
Firms are increasingly recognising how important flexibility is for employees and this year we expect a continued emphasis on flexible working options, including remote work opportunities, flexible hours and even compressed workweeks (doing weekly hours over a shorter period e.g. 35-40 hours over four days). By embracing flexibility, law firms not only cater to the developing needs of their workforce but also enhance job satisfaction among legal professionals.
A recent poll we carried out on LinkedIn showed flexible working as the number one key driver in the legal private practice – this came above salary, progressional opportunities and job satisfaction.
Newly qualified salary increases
As we navigated the final fiscal quarter of 2023, we saw salaries for newly qualified legal professionals balloon – with some firms increasing salaries by over 20%. Naturally, these drastic changes have posed the question: when does it end?
This year we have already started to notice a plateau of salaries, with economic factors and market dynamics playing a big role. Law firms are starting to manage expectations among junior associates, emphasising the importance of long-term growth opportunities, mentorship, and the overall benefits package beyond the initial salary.
Reduction in bonuses
Bonuses were once an integral aspect of a job offer for many, however, taking into consideration the aforementioned economic factors, firms are adjusting their financial strategies to navigate challenging market conditions. While this change may present short-term challenges, committing to maintaining competitive base salaries and exploring alternative avenues for rewarding performance will be the answer.
Having said that, an attractive bonus structure could be a great selling point for businesses that are unable to offer other benefits.
Focus on retention
Retention strategies will take centre stage this year, as firms recognise the importance of keeping their employees in a competitive market. Beyond salaries, legal practices need to double down on efforts to promote a supportive and inclusive workplace culture, where staff feel valued and empowered, and are therefore less likely to utilise the workplace as a stepping stone to a bigger salary.
From mentorship initiatives to wellness programmes and employee resource groups, law firms are proactively addressing the diverse needs of their workforce, enhancing job satisfaction and reducing turnover rates.
Restructure for Paralegals
We anticipate the role of Paralegals within private practice law is going to experience a transformation, with firms hopefully acknowledging the value of experienced members of staff that provide specialised support and enhance operational efficiency. At present, we speak to Paralegal candidates with many years of experience that are getting paid the same as an entry-level Paralegal.
This year, we expect there will be a restructure within paralegal teams, with an emphasis on career progression for those who are yet to qualify, or those that aren’t interested in qualifying as a Lawyer. This could come by way of introducing a Senior Paralegal role within the business, which could open the door for mentoring Junior Paralegals and streamline workflows, driving overall productivity.
Salaries for qualified legal professionals
In 2024, law firms are prioritising equity and transparency in salary structures, particularly for experienced legal professionals. It is no longer sufficient for tenure alone to dictate compensation levels especially considering a candidate with 4 years post-qualified experience (PQE) and one with 7 years PQE will likely have a similar, if not the same, charge out rate and targets to meet.
Firms may start adopting a merit-based approach that rewards performance, skills, and contributions to the firm. Legal professionals may need to take on additional responsibilities to honour a higher salary, such as being involved in business development, committees within the company, and taking on managerial/supervisory duties.
Top trends for the legal public sector
Public sector law continues to have its own unique set of challenges and opportunities. Similar to legal private practice, we are seeing salary trends and workplace dynamic shifts, with creative incentives being rolled out, mainly due to the limited freedom when it comes to pay.
Flexibility
Flexible working arrangements have gained traction and will continue to do so in public sector law, this reflects the broader societal shifts and advancements with technology. Public sector leaders are recognising the importance of diversity and inclusion within their workforce, understanding the need to appeal to a wider candidate pool, for example, working parents.
This will, in turn, better reflect the communities they serve. Legal professionals are drawn to public service roles that align with their own values and allow them to make a meaningful contribution to society.
When it comes to technological advancements, we have noticed a shift towards digital platforms for case management, document review and communication, streamlining processes - allowing the flexibility these candidates desire.
Focus on pensions
Pension benefits will remain a cornerstone of compensation packages throughout 2024 and beyond. Public sector employees benefit from robust pension schemes, providing them with financial security and peace of mind for the future – these also serve as a valuable retention tool, encouraging long-term commitment to public service.
Limited pay rises but potential increases
Public sector law faces constraints on pay rises, due to budgetary considerations and economic factors, meaning that salaries are banded. However, despite these limitations, opportunities for salary increases still exist and we are seeing some authorities expanding their offering in-line with expectations.
These often come in the form of performance-based pay rises, promotions and bonuses, rewarding excellence and dedication to an individual’s role. However, for those wanting more, locum work is an avenue to explore, usually offering a better salary within public sector teams than a permanent member of staff.
Incentivising talent acquisition
In an effort to attract top legal talent, we have seen some public sector clients offering a ‘golden hello’, a one-time financial payment given to new hires. These bonuses serve to entice experienced legal professionals to transition to public service roles and could be something we see more of this year.
Another way public sector authorities are incentivising talent acquisition is by offering relocation packages to attract top legal talent from different locations, therefore widening the talent pool. These packages aim to remove barriers for candidates that are willing to relocate for employment opportunities.
Progression
Career progression remains a focal point for legal professionals in the public sector. In 2024, authorities are investing in career development programmes, as well as training opportunities to support the advancements of their workforce.
By providing clear pathways for progression, public sector employers empower their employees to reach their full potential and contribute meaningfully to the organisation.
Paralegal salaries
Similar to what we are noticing in the private practice, public sector teams are recognising the difference that an experienced Paralegal brings, compared to a Junior Paralegal.
With different banding levels for qualified Lawyers, depending on PQE, the introduction of banding levels for Legal Assistants or Paralegals might be something we see this year. This would serve as recognition of the value experienced Paralegals offer in handling complex legal tasks, managing caseloads and mentoring their junior counterparts.
Emphasising the culture of trust
Public sector law embraces a culture of autonomy, where employees are empowered to manage their workloads and make decisions independently. In 2024, public sector legal departments are prioritising trust, recognising that micromanaging slows down productivity and negatively impacts morale.
By providing employees with the freedom to manage their work in a manner that suits their strengths and preferences, public sector employers will highlight the collaborative and innovative work environment they have created, increasing retention rates at the same time.
Conclusion
As legal professionals embark on another year in the dynamic and fast-paced world of law, understanding the intricacies of salary trends, flexible working arrangements, mixed with other incentives that complete the overall package on offer to candidates is essential.
Whether in private practice of public sector, the pursuit of competitive compensation, opportunities for progression, and a supportive working environment remains paramount, allowing law firms and public sector employers to position themselves as employers of choice and effectively navigate throughout 2024 and beyond.
To discuss the market in more detail, or get expert advice from professionals with extensive market knowledge, please get in touch with us today.
Faith Kelly (Private Practice) - 0113 243 9775
Ellie Warde (Public Sector) - 0161 834 1642