Rate this article:
Average rating:
Total votes: 3
In 2008, lawyers will work longer hours and jump raised bars in pursuit of greater rewards, occasionally wondering whether domestic economic insecurity and a rapidly evolving global marketplace could disrupt their careers. At least that’s the consensus of legal recruiters and law school career counselors we spoke to.
“Things are actually pretty robust nationwide trending into 2008,” says Karen Maheu, vice president of global resourcing at recruiter Lumen Legal in Royal Oak, Michigan.
Still, there are caveats. “There’s a definite sense of caution among smaller firms about hiring,” says Sarah Blumling, a recruiter with Mlegal Consulting in San Francisco. “They’re waiting to see what happens with the markets.”
So what are the biggest law-career trends for 2008?
Practice Areas to Watch
Legal work in corporate securities and energy will continue to be strong into 2008, recruiters say. Higher oil prices will spur Houston’s energy industry and its lawyers and paralegals, even if costly energy slows the national economy, where M&As and bankruptcies may surge. Transactional commercial and real estate work have staying power, and intellectual property (IP) law is hot.
“As IP drives more of the bottom line, firms need technical graduates with a few years of experience out of law school,” says Daren Wein, a senior recruiter for Mlegal. “And Sarbanes-Oxley has finally started to show its teeth. That litigation is a cash cow for lawyers.”
Danielle Avolio, director of legal placement for Hudson Legal, also sees IP as hot in 2008. “An area of law where a need seems to be arising, especially in-house, is transactional attorneys who can handle due diligence and contract work, specifically intellectual property licensing,” she says.
Campus Recruiting Heats Up
“I’m seeing more on-campus visits this year,” says Cheryl Kitchen, a career counselor at the Pettit College of Law, a second-tier law school at Ohio Northern University. “For the first time, students have had to choose from up to three firms.”
Avolio says on-campus recruiting will remain a significant priority for large firms. “(It) will be used as their primary method of finding their new classes of young attorneys.”
And as paydays grow ever more golden at fancy firms, the entry hoops get higher. “We’re seeing more firms that have higher hiring criteria, that demand stellar academics and no gaps,” says Blumling.
Geography Matters -- Less
New York is still the citadel, but top talent is spreading out. “Experienced lawyers are moving more frequently,” says Maheu. “And new grads are willing to go anywhere, because they can stay connected with friends and associates on the Internet.”
However, non-Right Coasters aren’t necessarily giving up the big bucks. “Chicago seems to be catching up to the East Coast,” says Maheu. Adds Wein: “Some firms have revised West Coast salaries to full New York rates.”
New markets are emerging, too. “There is a growing interest from both attorneys and firms in areas known more for their lifestyle benefits, such as Denver and the Pacific Northwest,” Avolio says.
The Salary Picture
When will first-years in New York break $180K? It could happen in 2008. “I think East Coast salaries will rise again,” says Elaine Makris Williams, principal of MS Legal Search in Houston.
In the broad-based market, salaries for first-year associates at large firms will rise 9.1 percent, to $111,750 to $137,000, according to Robert Half Legal’s 2008 Salary Guide.
But at major players, Avolio sees money staying stagnant in 2008. “Big firms have already raised salaries by almost 20 percent over the past year, and they are still adjusting, trying to absorb it internally and through increased billing rates,” she says. “However, corporations are very aware of what has been happening with associate salaries and are monitoring billing rates closely -- any additional raises in 2008 will be too hard to absorb.”
The story’s a little different at smaller players. “You may see smaller firms raising salaries this year as they raise billing rates to maintain the gap between themselves and the large firms,” Avolio says.
Money to Die for -- If the Hours Don’t Kill You
Who says 2,000 is the ultimate goal for billable hours? “We’re seeing more merit-based bonuses based on billable hours, where 2,000 hours earns a bonus and 2,200 hours brings a higher bonus,” says Makris.
Young Partners Work Hard for More Money Than Ever
Even with PPP (profits per partner) running toward $1 million or $1.5 million at some firms, many partners see themselves slaving for every dollar. “Partners are asked to run as fast as they can well into their partnership years,” says Wein.
Transactional Work Migrates Offshore
Lawyers, look out: Many firms and in-house departments want to send your work overseas. Example: Much transactional work can go offshore with the right structure and supervision, says Maheu.
Contract Attorney Market on the Rise
According to Kara Nickels, managing director of operations for Hudson Legal, the contract attorney market holds opportunity in 2008. “Corporations recognize the financial benefit of utilizing contract attorneys, and law firms recognize they have to provide alternative options to corporations looking to skim the fat off their litigation budgets,” she says. “Utilizing contract attorneys during the discovery phase of litigation is one of the best ways to significantly reduce costs.”
Legal Support Staff Trends
Paralegals, those skilled legal beagles who keep the trains moving, continue to make incremental progress with pay. “A couple of years ago, the cap on paralegal pay in the $50s blew off,” says Maheu. “Now paralegals are earning into the $60s and $70s.” Paralegals with four to six years of experience at large firms will earn $48,000 to $64,500, according to Robert Half.
Opportunities for support staff are changing, too. “As e-discovery starts consuming more and more resources, I see firms hiring fewer low-level paralegals as they start outsourcing jobs to temp agencies,” Avolio says. “But I see there being an increased role from staff in certain areas, like compliance/regulatory work.”
Additional Articles in This Feature