Recruitment Surveys: only consulting firms and investment banks pay more as law firms aim to be market leaders

Graduate vacancies and salaries at law firms have remained static for the past three years, while other sectors have seen increases in both, a survey of some of the UK’s leading employers revealed last week.


The Association of Graduate Recruiters (AGR) 2005 survey showed that while overall graduate vacancies rose for the second year running, with an increase of 11.3%, the number at law firms remained constant, with an average intake of 50 among those that participated. Against the trend, one leading firm cut its vacancies by more than 25.


The survey was completed by 224 employers, 30 of which were law firms, including the likes of top-ten City practices Herbert Smith, Linklaters and Eversheds. It reported that law firms paid an average starting salary of £28,000 – the third highest, behind consulting firms (£28,500) and investment banks (£35,000). Law firms featured among the 16 employers which said they plan to pay their graduates at least £35,000.


Overall, starting salaries were up 4.8%, with a median of £22,000. The largest increases were in accountancy and professional service firms, the public sector and IT companies.


Meanwhile, the GTI Graduate Trends Survey 2004/2005 of 70 law firms – also released last week – confirmed the consistent recruitment pattern and unchanged salaries in London, but found salaries outside the capital had increased.


GTI also surveyed 60 barristers’ chambers and found the number of pupillages offered remained unchanged on the previous year. The average award rose from £23,526 to £24,686, with an increase in the number of sets offering more than £36,000.


AGR chief executive Carl Gilleard said: ‘Law firms have consistently been among the highest payers. Over the last two to three years, the companies paying the highest wages have not increased their graduate salaries much, which indicates they feel their salaries remain competitive. They are good at planning ahead, they have structured programmes of recruitment and training, and know their capacity.’


He added: ‘The law is not affected by economic variables in the same way as manufacturing or investment banking.’


At City firm Herbert Smith, recruitment has remained steady at 80 graduates and the starting salary rose slightly to £29,000. Kerry Jarred, its UK graduate recruitment manager, said it is important to take into account the two-year lead times law firms allow for the recruitment cycle, as the leading practices sign up trainees in their third year at university.


Recruitment and salaries at national firm Eversheds also remained constant, with 86 graduates who, in London, will receive £28,000. Michael Hunting, head of graduate recruitment, said: ‘In the legal profession the emphasis is on the quality of those we recruit because we look to retain them long term.’


But Claire Cherrington, head of graduate recruitment at Linklaters, with an intake of around 130, said: ‘Our starting salary has steadily increased over the last couple of years to £29,700. We want to be market leaders and feel it is appropriate to increase salaries even though the legal sector has remained static.’


Eversheds and Linklaters were both highly commended at AGR’s recent recruitment awards in the innovation and integrated marketing campaign awards respectively.