Overview of Australian Legal Recruitment Market
November 28, 2011 by Damian
Here is a link to a really good overview of the legal recruitment market in Australia at the moment taken from Lawyer’s Weekly.
Reading through it, it was interesting to note how similar the sentiments that the recruiters had over there are to what I am seeing here in NZ. I will write a separate post soon to give me tuppence on where the NZ market is currently at.
Australian Legal Recruitment Market Update
August 2, 2011 by Damian
Here is a link to an article written by one of the Directors of Burgess Paluch Legal Recruitment in Australia.
http://www.lawfuel.co.nz/features/show-feature.asp?FeatureID=241
We work very closely with Burgess Paluch so if you are interested in heading ‘across the ditch’, get in touch with us now and we’ll see what we can do for you!
Clifford Chance sizes up options for Australia launch Part 2
December 14, 2010 by Damian
For anyone who read my post yesterday and has any interest in Clifford Chance’s intention to open an office in Australia, it seems as if the story is starting to gather some real momentum judging by this story in The Lawyer –
Sydney firm Gilbert & Tobin has emerged as the leading candidate as Clifford Chance steps up its search for an Australian tie-up.
The magic circle firm is understood to have held talks with a number of firms in both Sydney and Perth with a view to finding merger partners in both cities.
While talks with Cochrane Lishman Carson Luscombe in Perth have stalled, speculation has intensified in Australia that a deal with Gilbert & Tobin is still on the table.
The Sydney firm was launched as a telecoms and media boutique in 1988. It is now a full-service firm with more than 50 partners.
One Sydney-based source said: “They’re ideally set up to merge with a magic circle firm.”
While discussions with Cochrane Lishman have ended, sources in Perth said that a deal could still be possible, with the situation currently described as “up in the air”.
One Perth source said: “It’s true to say that with A&O [Allen & Overy] coming here and the investment there’s been in Western Australia, it’s something they [Clifford Chance] would like to do.”
A&O launched in Perth and Sydney earlier this year when it swooped for teams of lawyers from Clayton Utz and Freehills.
Norton Rose also established itself in Australia at the beginning of the year when its tie-up with Deacons went live.
Asked about Clifford Chance’s search for a merger target, another source revealed: “There’s no doubt Clifford Chance has been hard at it and has been for some time.”
Clifford Chance is thought to have pursued an Australian merger ever since informal talks with Mallesons Stephen Jacques concluded in 2008.
The firm declined to comment on the story.
While A&O and Norton Rose’s entry into the Australian market was big news, this is absolutely massive news. Gilbert & Tobin are a hugely well respected firm in Australia on their own merits and are market leaders in certain practice areas but if the merger with CC goes ahead, they would automatically leap right to the top of the pack. I am sure that their partners are licking their lips in anticipation…
Clifford Chance sizes up options for Australia launch
December 13, 2010 by Damian
It looks like the Australian market is bracing itself for the arrival of another international heavyweight, judging by this story in Legal Week :
Clifford Chance (CC) has been looking again at entering the Australian market, two years after informal merger talks with Mallesons Stephen Jaques ended in 2008.
The magic circle law firm has been considering options in the region and has held discussions with a number of firms on the ground in recent months.
Perth outfit Cochrane Lishman Carson Luscombe and Sydney firm Chang Pistilli & Simmons are among those CC is understood to have talked to within the last two months; however, discussions with both firms are now thought to have been concluded.
Seven-partner Cochrane Lishman Carson Luscombe was set up by two partners from Mallesons, Ian Cochrane and Michael Lishman, in 2006.
Seven-partner Chang Pistilli & Simmons was set up the same year by a group of partners from Sydney outfit Atanaskovic Hartnell, including dispute resolution partner Diana Chang and M&A partners Mark Pistilli and Danny Simmons.
News of the talks comes after informal merger discussions between CC and Mallesons ended in 2008 as a result of the market downturn. The firms had previously talked in 1999.
Name partner Ben Luscombe said: “This firm has been approached by inter-state and overseas firms interested in establishing a presence in Perth, but it is not our policy to comment on those approaches.”
CC refused to comment on its intentions but a partner conceded the firm was looking to launch via a team hire.
Allen & Overy (A&O) and Norton Rose have both launched offices in Australia within the last year. Norton Rose tied up with Deacons, while A&O hired a group of partners from Clayton Utz and Freehills.
As the article states, it is not the first time that Clifford Chance has looked at establishing some sort of presence in Australia. However, with the arrival of A&O and Norton Rose, it looks like they have made the decision to look at it again, albeit in a more understated way than was planned with the Mallesons merger.
Looking at it in a broader sense, it is rare that where one international firm goes, the other international firms do not follow (unless you are talking about Slaughter and May). As such, in the coming few years, it would not be a surprise to see some of the other leading international firms making their way ‘down under’ and establishing a foothold in Australia.
Whether any of them will decide to travel the extra few miles to have a look down here is anyone’s guess but it would certainly make life interesting if they did!
Is Australia the New London?
September 27, 2010 by Damian
After eighteen months or so of pretty stagnant international recruitment and of candidates sitting tight and not investigating overseas opportunities, it seems as if, at last, people are now starting to move offshore.
As everyone knows, the usual route is to do some travelling through south-east Asia on the way to sleeping on some old mate’s floor in Earl’s Court or Clapham, drinking in The Church or The Outback, constantly checking out Easyjet and Ryanair for cheap European weekend getaways and hopefully getting some work with a reputable UK firm between weekends away and following the ABs on their annual end of year tour.
Although there are still a large number of people heading to the UK, I have detected a larger than usual number of people not wanting to go quite so far away and as opposed to drinking in some faux Australian bar in Covent Garden, they are looking to drink in a real Australian bar in Darling Harbour or St Kilda with weekends spent back home in NZ rather than in Estonia or Croatia.
The question that this has raised in my mind is – ‘why are more people now thinking about Australia rather than London’?
I think that there are a variety of answers to this. One of the main ones is simply a perception (and reality) that there are more opportunities for NZ lawyers in Australia than there are in London at the moment. The Australian economy has weathered the financial storm better than most and as such, after some headcount trimming in 08 and 09, most employers appear to be in expansion mode, albeit cautious expansion mode.
Secondly, the Trans Tasman Mutual Recognition Act which means that NZ lawyers can practice in Australia without taking any further exams (and vice versa), makes the transition a lot easier for both candidates and clients. Consequently, employers are much happier to take a NZ qualified on than perhaps any other classification of overseas lawyer and some candidates are delighted that they can effectively just get on a flight and start practising straight away. This development is not a new one but in these days of cautious hiring strategies, taking someone on who does not have any visa or requalification issues is a real advantage to an employer and as the UK tightens up on its visa quota system, it is becoming harder and harder for candidates to get a role over there without a EU passport or ancestry visa.
Another recent development that has, in my view, made Australia a more attractive destination is the arrival of some of the big UK brands into the Australian market. Both Allen & Overy and Norton Rose have entered the playing field (along with constant rumours of other international firms establishing a presence) so it is no longer necessary to go to the other side of the world to secure a role in an international law firm. The threshold to get into these firms is very high, meaning that only very highly skilled and experienced NZ lawyers will make it into one of these firms but their arrival is a signal, if one were needed, that the Australian legal market is one of the most sophisticated markets in the world, staffed by top quality lawyers where you can really grow and develop your career.
As well as the above reasons, I have detected a feeling that the recent economic turmoil has made some people reconsider what is important to them and some have decided that in difficult times, perhaps it is better to be a little closer to home than on the other side of the world. Perhaps, as a result of the GFC, London has lost some of its lustre for people and the ability to move out of NZ but be only a three or four hour flight away is more of a draw card than warm beer, dodgy pies and grey skies.
A stint in a law firm in London is always going to be on a lot of young lawyer’s ‘to do’ list but at the moment, there are more and more people thinking that a stint in a leading Australian law firm is as attractive, if not more so, than a move to London. Whether this trend will continue is anyone’s guess but my view is that as the Australian market becomes more internationally focussed, it is now a genuine alternative to the UK OE and one very worthwhile investigating.
If you do want to have a chat about opportunities in Australia, please get in touch. I would be delighted to talk to you about it.
Don’t Believe All That You Read (Apart From What Is In This Blog)
July 13, 2010 by Damian
There is a well worn adage that you shouldn’t believe all that you read. However, as the legal press is pretty conservative, I, like most people, generally take most of what I read on face value.
People read these industry magazines to get an informed view of current events and from a recruitment point of view, to get a steer on trends and movements within the job market. As such, when people read an article commenting on the state of the job market, the message that the article conveys will permeate into that marketplace and create among the readers a perception of what the reality is.
However, when I read this article in the Australian Lawyers Weekly, it reminded me of the dangers of doing such a thing and of the responsibility that people in our industry have to give a realistic view of what the market looks like.
www.boxbreakers.com.au/News/Now-what-.aspx
The majority of this article is in fact a very informative discussion about whether lawyers who have had their pay frozen for 12 months should expect a pay rise to reflect that. There is also some very helpful comment about the dangers of jumping out of one’s current role on the basis of a minimal pay rise.
However, one of the commentators takes the discussion into a completely different realm when he states:
‘It’s an amazing market. Absolutely amazing. For a candidate it’s the most buoyant market I have ever seen.”
I have to say that I found this comment to be ‘amazing’. To make comments like the one above, in my view, gives job seekers a completely unrealistic view of their chances and is counterproductive. Any candidate reading those comments will think that it is now easy to get a job and in the event that they don’t, they will be wondering what is wrong with them.
“It’s the most buoyant market ever and I can’t get a job – what is wrong with me?”
I understand the hypocrisy of commenting on someone else’s opinion with my own. I am also aware that this article relates to the Australian rather than NZ market. However, I work closely with an agency based in Australia and the message that they convey to me is a lot different to the one above. Yes, things are better; yes, firms are hiring; yes, if you have a strong background, you should be able to get a job but according to them, it is not an ‘amazing market’, it is not a ‘buoyant market’ and to give people the impression that it is is a dangerous message to send.
Around The World (In Just Over 1100 Words)
April 14, 2010 by Damian
Sorry for the delay since my last post but sometimes life gets in the way of blogging and we have to deal with more important things than legal recruitment. However, I am back on board now and think that it is a good time to give an overview of what is happening in the recruitment markets worldwide at present.
I have seen one of my competitors advertising that London law firms are now receptive to approaches by NZ lawyers. After speaking to my colleagues over in London last week, my view is that this is not quite the whole truth. It is the case that more jobs are coming on to the market in London. As a consequence of this, firms will not quite have the same pick of top quality candidates that they have had in the last 12-18 months and as such, they may have to reconsider who may or may not be suitable for their particular roles. As the locally qualified talent pool becomes more diluted, employers will have no choice but to look at overseas qualifieds to fill the gaps.
However, what is outlined above is not the reality just yet. Sure, I have heard anecdotal evidence that NZ lawyers in London are securing interviews. The caveat to that is that they are probably being interviewed along with 6, 8 or even 10 other people. In the candidate v law firm power struggle, the firms still hold all the power. Firms are still being very discerning about who they employ and they are willing to take their time to find the right person. As I write this in April, it is still going to be a rare occurance that that ‘right person’ will be an overseas qualified lawyer.
Don’t get me wrong – the market over there is improving. There is a general consensus that the worst is gone and that it is now time to look at and plan for the future. This forward planning, however, will be cautious and gradual but as it continues to take shape, opportunities for top quality overseas lawyers will come about. It is fair to say that those who are in the UK with their visa status secured will be at the vanguard of this trend. It is also fair to say that the most attractive prospects will be those with 3+ years experience. Candidates with less than that will struggle due to the enormous amounts of locally qualified junior lawyers who have fallen victim to the GFC over the last 12-18 months.
Looking further afield, the bottom has dropped out of the offshore markets completely. A search this morning on Seek for jobs in the Cayman Islands turned up one job and there is not one job being advertised for the Channel Islands. Compared to 2 years ago, this is an astonishing drop off in demand. Judging by what I have heard, it will take a very long time indeed for these markets to pick up from a recruitment point of view. The current economic crisis has fundamentally affected these economies and until these jurisdictions work out what place they now occupy in the economic world, opportunities in these island paradises will be very scarce.
The Middle East seems to be at an interesting juncture at present. It had the most spectacular fall from grace of all as dozens and dozens of lawyers were retrenched or made redundant. The simple fact is that the whole region was massively overlawyered and when the work dried up, there was very little for anyone to do. It is very doubtful that the Middle East region will ever be quite so attractive as it was a few years ago but it is showing some signs of recovery.
Some of the larger firms in the region have started undertaking some major projects and have consequently started to look for staff again. The catch is that they are being absolutely inundated with quality applications. However, if the big firms continue to be busy, it is likely that activity among other firms will start to pick up, thus increasing opportunities for lawyers to come back again. How long this takes is anyone’s guess but I would suggest that we are at least 6-12 months away from there being many options for NZ lawyers in the Middle East.
Which leads us on to Asia – the shining light, it seems. My colleagues in Hong Kong say that the place has gone ‘gangbusters’. A lot of this activity has been in the insolvency/restructuring area but they are starting to receive instructions from firms on the look out for corporate and finance lawyers as well. China is obviously behind a lot of this activity and opportunities are opening up in China and surrounding regions as well as in HK.
With every bit of positive news comes the sobering news. Yes, there are positions in Asia but employers are now looking foremost at people with language skills or some ties to the region. It is not to say that it is impossible without either of these but it does make life a lot harder if you don’t speak the lingo or have a particular reason to want to move there.
Finally, to our good friends across the Tasman. The media has painted the picture that Australia is in great shape and is back to normal. Having spoken to people over there, it seems, again, that this is not quite the case. The economy is improving but this has not translated into large numbers of new jobs yet. Yes, firms are starting to recruit again but as in the UK, they are being overwhelmed by the amount of quality applications and are in no rush at all to fill the roles. Locally qualified lawyers are still the most attractive so, even though NZ lawyers can practice over there, Australian employers will still favour Australian lawyers if given the choice.
So, where does all of that leave the NZ lawyer desperate to head offshore? Well in summary, the legal recruitment world is in better shape than it has been since mid 2008. Confidence in the future is up and firms are generally making positive noises about increasing headcount in the coming months. However, at present, competition is fierce, employers are still in control and locally qualifieds still are the most attractive option.
If you can hang on for another 4-6 months, I think that you probably should. However, if you can’t stand it any more and you just have to move, then my advice is to be flexible as to what you will look at, be patient as the process will take a long time and when given the opportunity to attend interviews, make sure that you perform to the best of your ability.
I look forward to looking back (if you know what I mean) at this post at the end of 2010 and comparing how things are like then to what they are like now. It will be an interesting comparison!!!
Biggest News of the Year So Far!!
February 9, 2010 by Damian
By far the biggest news story of the year so far in the legal recruitment world has just broken with the news that UK Magic Circle giant Allen & Overy is opening in Australia -
http://www.lawyersweekly.com.au/blogs/top_stories/archive/2010/02/07/allen-amp-overy-to-open-shop-in-australia.aspx.
This is a huge story. There have been murmurings for years about UK firms either setting up in Australia or merging with an established Australian firm (which recently just happened with the Norton Rose/Deacons merger) but the naysayers consistently said that the rewards would not justify the potential risk and that the referral arrangements that already exist between UK and Australian firms work perfectly well, thank you very much.
However, A&O obviously think differently and are jumping straight into the top tier in their chosen areas. This will make them an extremely attractive choice for UK lawyers wanting to spend some time in Australia as well as giving local lawyers the opportunity to get a Magic Circle law firm on their CV without even leaving the country. However, it does not take into account that a lot of people want to experience a different culture at the same time as furthering their career so it may not necessarily be the chosen route for many who may prefer to work for A&O in London, rather than A&O in Sydney or Perth. There is no doubt that they will be able to attract the very best graduate lawyers but time will tell whether they will be able to offer enough to keep the very best intermediate lawyers in Australia, rather than losing them offshore.
What this means for New Zealand law firms and New Zealand lawyers is a very interesting question. I would imagine that the lure of working for A&O in Australia would be very attractive to NZ lawyers but as is the case in London, only the very best will stand a chance of securing a role there.
Also, it does raise the question whether any international firms think that doing a similar thing in NZ would be a good idea. Obviously the quality of lawyer is good enough here but are the deals (and the fees) big enough? It would seem that because of the total lack of any speculation of this kind whatsoever that the answer to this question is ‘no’. The firms who have a referral relationship with A&O will be rubbing their hands. Other firms may be a little afraid!
Overseas Markets Update
September 10, 2009 by Damian
The most overused phrase at the moment is ’green shoots’. I hate that phrase. (It’s like marketers talking about going for ‘low hanging fruit’ – I really hate that one.) What is wrong with asking: ’do you see any signs of recovery?’ or ‘are things getting any better?’ Why do people insist on talking about ‘green shoots’? Does no-one realise that ‘green shoots’ can get trampled on very easily? If anyone catches me using it, please feel free to slap me. Hard.
In any case, to answer the question: ‘ are things getting any better?’ I thought that it would be a good idea to give the views of colleagues of mine working in London, Australia and Asia. I will give my twopence worth on the NZ market in a separate post.
I work very closely with an agency in London and was speaking to them last week about the state of the market over there at the moment (not once was ‘green shoots’ mentioned). Their view was that even though it is still ‘incredibly tough’, the worst is almost certainly behind them. They are basing that view on the fact that they are now starting to receive instructions from firms to look for people other than litigation/insolvency/restructuring lawyers. Some firms are even going so far as to hire for their corporate or finance teams. That is the good news. The not so good news, from a NZ lawyer’s point of view, is that these firms are only looking for locally qualified (preferably Oxbridge educated), Magic Circle lawyers who have not been made redundant – that is quite a tight brief.
As such, if we are to look to the future, the first ‘cabs off the rank’ (a cliche I don’t hate as much as ‘green shoots’ or ‘low hanging fruit’) are going to be exactly the type of lawyers mentioned in the previous paragraph – the absolute superstar candidates. When we are at the point when this candidate pool has been exhausted, I think that the firms will then turn to the well quailfied, well educuated, solid City lawyers – ‘the safe pairs of hands’ (the cliches are piling up now). Only after this pool has been emptied will, I believe, the firms start to look at really high quality overseas lawyers but it really will only be those at the ‘top of their game’ over here (that’s another one to add to the list). Then it will go to good quality UK lawyers and then to good quality overseas lawyers and so on and so on.
In other words, there is going to have to be quite an uplift in vacancies in the London market before overseas lawyers will start to get a look in because there are plenty of locally qualifieds to get through first. When this will happen is anyone’s guess but if you asked me to look into my ‘crystal ball’ (another one), I don’t think that there will be many overseas lawyers securing positions in London until mid next year. I hope that I am wrong about that but it will take an incredible turnaround in fortunes for it to happen any time before then.
It is a similar story in Australia. The market there was hammered in the last year but it seems to have ‘flat-lined’ (I promise that will be the last one) and to be on the improve. Again, it will take some time for NZ lawyers to secure positions over there in numbers as there are a lot of good quality Australian qualified lawyers to be slotted in first before employers will start looking at Kiwis. However, the economy over there has rebounded very well so hopefully Australia may be a viable option, if not this year, maybe early next.
Which leaves us with Asia which may well be at the forefront of recruitment activity in the very near future. My colleagues over there told me that they are ‘very busy’ at the moment, admittedly with a lot of insolvency/restructuring work but again they are coming across some corporate/finance roles as well.
This view is backed up by this article from the Asian Legal Business magazine – http://legaljobscentre.com/career-tips/37016/details.aspx although be warned, it does mention ‘green shoots’.
Again with the good news, comes the not so good. The not so good news is that getting a job in Asia has never been easy and only those candidates who have worked in a top tier firm, have excellent academics and at least three years could hope to get a job in a good market. In a tighter market, this quality threshold has been raised even higher to include language skills as being a more important consideration and candidates’ motivations for wanting to move to Asia will be more closely monitored than ever before.
So, all in all, things are still very tough overseas and there is still a lot of correction needed in the market but if you can stick it out for another 6-12 months, your chances of securing something in London, Australia or Asia will be much better than they are now.
Fingers crossed that those ‘green shoots’ continue to grow.
SLAP.