When it comes to decision-making about their own careers, many lawyers take the “safe” short-term option over the best long-term commercial option. This makes sense to them for a number of reasons. Firstly, lawyers are trained to identify problems and be risk averse from the very start of their careers. Secondly, many lawyers don’t have the confidence to make commercial decisions. It is not something that lawyers have to do often in the course of their careers, and it is not something that is a requisite skill in being a lawyer, particularly in the private practice world.

The reality is as follows: very few employees in any industry understand the relationship between risk and reward in their careers, let alone those in a conservative profession like law. This lack of insight manifests itself in a number of different ways – taking longer to make partner, letting employers off the hook during reviews, and generally giving law firms significantly more strength when it comes to bargaining.

For example, at EA International we are forever speaking to people who would not contemplate a small step back in financials in the short-term for significantly more reward in the long-term. Even for coveted in-house jobs where “supply” far outweighs “demand”, people aren’t willing to take that step to get their foot in the door and succeed in the long-term in an in-house environment.

The act of passing up invaluable opportunities in the overseas market is also a prime example of risk minimisation at play. The Australian dollar is relatively high and we are currently seeing large numbers of Australian lawyers doing a straight conversion of the Australian dollar to other currencies. They are then looking at prospective salaries and taking that converted result to mean that they will be ahead or behind of their peers without taking into account things like the real cost of living in both jurisdictions. This is a demonstration of lawyers being focused on the small picture and short-term. The benefit of moving overseas is invaluable – both professionally and personally – and a chance to accelerate your career in an exciting and different jurisdiction. On return, you have more leverage than your peers and the opportunity to move up through the ranks quickly!

Ultimately, risk-averse, black letter lawyers are not the ones who progress the quickest. It is the lawyers who are most engaging, commercially-minded and willing to effectively ‘build’ their own business who create a business case and reach partnership first on that basis. These are the lawyers who ask for what they want come review time, who take the step overseas to get priceless experience and who make the lateral move to accelerate their progression rather than getting stuck in the bottleneck in their current firm.

There will always be times when pure financials don’t reflect the real value of the opportunity in the market. In the commercial world, being able to see long-term benefits is an extremely important skill that will allow you to maximise potential in your career.

To speak to a consultant about how to maximise your career through international relocation, lateral moves or in-house transitions, send us an email at ea@ea-int.com or give us a call on 9266 2900.

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The perception and the reality of making such a transition are slightly different. If a commercial non-legal role is your ultimate goal, the transition has to be performed cleverly.

When making the move to an in-house legal team, it is important to be careful not to overplay the fact that a non-legal commercial role is the ultimate goal. First and foremost the company is looking for a lawyer to undertake their legal functions. Often in an interview for an in-house role, a candidate will suggest that they’re not really interested in the legal aspect of the role and instead prefer the commercial side. This approach will usually result in the candidate not being offered either role. It is important to recognise that, primarily, the company are looking to recruit an individual with legal skills – if they wanted to recruit for a non-legal commercial role they would have done so.

It should be further recognised that you may have to fulfil the legal role, learn the industry, up-skill and gain the trust of the business before shifting to more commercially-oriented responsibilities within the company. This may take time, but it will present you with an edge over competitors. When considering an existing employee for a commercial role, the company will take institutional knowledge of the business and past performance into account, allowing for an easier transition. This learning period will also allow time to fully appraise a non-legal commercial role and decide whether it is something you wish to pursue.

When looking to make the move it is important to target those companies that have a history of flexibility in allowing for movement between legal and commercial sectors – those with a more open path for prospective candidates to transition their skills. Some companies will offer secondments to commercial areas of the business and this is a good way to determine if such a role is going to be right fit. When seeking these roles, research what function, duties and skills are required and talk to people in similar positions to get an idea about what competencies are needed and what their experiences are like overall.

If you are considering making such a transition, call our Senior In-House Consultant, Andrew Murdoch, on +61 2 9266 2909 for a confidential discussion about your career.

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We are often asked by Australian and New Zealand lawyers why their experience is discounted by international firms in various overseas jurisdictions, particularly those whose salary lockstep is based on the England and Wales qualification process. The table below outlines the training and qualification dates of UK lawyers compared to Australian and New Zealand lawyers.

Essentially, admission requirements are far more stringent and time-consuming in the UK than they are in Australia and New Zealand. UK lawyers do two full years of training across four different areas of practice – basically working as graduate lawyers for a full two years – before becoming “Newly Qualified”. They are then considered a NQ lawyer for another twelve months before getting to the one PQE level by UK standards.

In comparison, an Australian lawyer will get to the one year level after working as a graduate lawyer for 6 to 12 months depending on their admission timetable. So, after having worked for five years, an Australian or New Zealand lawyer will have about four years of post-qualification experience, but a UK lawyer will only have two. There is a basic reason why international firms apply an equivalency level between 18 and 24 months – to bring parity between locally qualified lawyers and overseas laterals.

Lawyers should appreciate there is nothing punitive about the discounting process. It merely reflects the significantly greater experience UK lawyers get before the “NQ” level in, what is usually, a far larger and more internationally focused market where lawyers work on bigger and more complex matters from day one.

For more information or a confidential discussion please call one of our international experts on +61 2 9266 2900 or email ea@ea-int.com.

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What to expect in 2012?

As a lawyer, performance reviews present the opportunity to discuss salary, workflow and in some cases, progression. Heading into a review, it is important to do your homework. Have a look at salary guides and market updates and inform yourself about the level of remuneration you should be receiving. EA International has salary bands listed within our local City Guides which should assist.

With the economy as it is, however, it is important to be realistic. While EA International does not expect salary freezes, expect any uplifts to be on the cautious side this year. For those looking for more financial reward, don’t despair! Firms in the Australian and New Zealand legal space are increasingly looking to bonuses as the preferred method to reward performance.

What if you don’t get what want?

If you are unhappy after your performance review, it is important to be proactive. Having taken on board the feedback from supervising partners, seek advice on where you stand in the market. Our local private practice consultant, Shaaron Dalton, will be happy to advise you on what you should be receiving for your level, alternatives in the market and any growth in your area of expertise.

Progression

One of the main concerns raised at this time of year is progression rates. There is a genuine feeling in the market that people are not progressing as fast as they had expected. The fact is, primarily as a result of the GFC, partnership tracks are no longer assured for high quality lawyers in large firms and bottlenecks are popping up in an increasing number of practice groups.

For those who have their eyes on the partnership track however, it is not all bad news. Positioning yourself early in a firm that is not as top heavy and has fast-track partnership options is a recommended option for mid level lawyers and junior Senior Associates. For lawyers in the top-tier, a common misconception is that if their firm is top heavy, all other top tier firms must be as well. This isn’t necessarily the case, and it is important to remember that bottlenecks often occur in specific groups within a firm, meaning that such problems are not universal.

In addition, within specific practice areas, new entrants to the market or boutique or mid-tier firms can have brilliant partnership opportunities while still providing top-tier level work. It is an often over-looked fact that some mid-tier and boutique groups operate in the high end of the market with prominent client and attendant financial rewards. When the top six view a mid/boutique firm as competition, you’re on the money!

If you would like to discuss your upcoming review or long-term career with Shaaron Dalton, give her a call on +61 2 9266 2901 for a confidential discussion.

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Most of the construction/infrastructure teams are seeking approval for an increased head count to meet the greater demands placed on their teams. However, management continues to cite ‘market uncertainty’ to justify postponing recruitment. The exception to this has been in Western Australia and Queensland where in-house legal teams have been beefed up, particularly with project lawyers to work specifically on large gas projects.

As in-house teams are being stretched, companies have been forced to send work externally, and as a result, private practice construction teams are busy. At EA International, we expect the situation to shortly reach a tipping point where there will be sufficient ‘market certainty’ together with external legal cost pressures and large state infrastructure projects (North-West Rail Link/Port Botany etc) that will push in-house legal teams – and management – to recruit. When this happens there will be a rush for talented construction lawyers.

For further information on the in-house market please feel free to contact Andrew Murdoch on (02) 9266 2900.

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For Linklaters, the alliance gives them a platform within the Australian market without having to open an office through a full merger, takeover or start up. They will become the next of the elite UK firms to gain ground in the Australian market hot on the heels of Clifford Chance, Allen & Overy and Ashurst. For Allens it gives them a genuinely international network of lawyers and services which they can now offer clients internally. By association, the alliance also gives them greater global exposure.

It’s a novel model; a middleground between opening an independent office and formally merging – routes that have been undertaken by UK and US firms in the past two years in opening offices in Sydney and Perth. No doubt the arrangement will give both Linklaters and Allens more flexibility to grow in market relationships that have shown potential, without the complex and costly commitment of a comprehensive merger (trickier still when both firms hold such a dominant position within their respective markets).

Given this decision to form an alliance over a merger, there will no doubt be questions amongst each firms’ associate-level fee earners as to what it all means from a practical point of view (in terms of the their current position within their firm and prospective international moves that they may be considering). This will be particularly relevant for Australian lawyers who may view the alliance as an offer to pursue an overseas career. Will it result in an internal move for Allens lawyers or will it remain a lateral move to a competitor? Will the arrangement be formalized with two secondment programmes in place? How closely and cooperatively will the firms work to give their lawyers these opportunities if they want them? All are valid questions. No doubt there will be sensitivities in some cases where, for example, an Australian lawyer at Allens wishes to apply for a position with Linklaters in one of their overseas offices. From a recruitment point of view, confidentiality always plays a part in the process as does the fact that partners don’t like to let their best people go. So how will such a process be managed on a case-by-case basis?

As with all lateral moves, lawyers should remember that they will still be effectively moving to a new firm or employer, albeit one they perhaps know better than they did before and the process may well become more streamlined with arrangements in place for secondments and other methods or sharing the talent pool. Again – in this context – confidentiality becomes more important than ever. Managing at arm’s length will always be the best way to approach things to ensure the right move is made and all suitable opportunities are explored.

If you would like to know more about how this situation will impact on your international career, contact one of our international consultants on +61 2 9266 2900 or email ea@ea-int.com.

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The demand for finance lawyers in London and Europe has ebbed and flowed over the past nine months. After a solid beginning in 2011, we saw many of our international clients turn the taps off due to the continued difficulties faced by European economies as well as a tough lending climate. For the elite Australian and New Zealand finance lawyers looking to take their careers to the international level, there haven’t been a lot of options. But things are starting to change; for those with 3 to 6 years of experience in general lending, corporate finance, project finance or leverage and acquisition finance, there are a number of firms looking to hire.

We presently have number of international firm clients looking to recruit associates into their general lending teams in London and other global offices. We are interested in speaking with top tier lawyers with general banking or corporate finance experience, leverage and acquisition finance, asset finance, project finance and structured finance and securitisation experience. Lawyers with between 2 and 6 years of post admission experience and an interest in relocating within the next 6 to 12 months should give us a call to run through the range of options on offer in various locations around the world.

We are also managing a number of opportunities with leading US teams in London, again looking for finance generalists or those with debt capital markets experience. These are rare but lucrative opportunities for the right lawyer looking to make a move to London.

For more information or a confidential discussion please call one of our international experts on +61 2 9266 2900 or email ea@ea-int.com.

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EA International is currently managing a litigation/arbitration campaign for global law firm Linklaters. The global litigation and arbitration practice works with the highest-profile clients on their most complex, high-value and reputation-threatening matters. The team works seamlessly across jurisdictions and practice areas. Our client offers intellectually stimulating and rewarding work in an open, team-orientated and meritocratic environment that is already home to a sizeable community of Antipodean lawyers.

We are looking for top-flight litigation and arbitration lawyers to join their highly successful team in London. We are seeking interest from quality litigators, both junior and more senior, with experience of all types of high-value commercial dispute resolution. We are particularly keen to meet with lawyers with a background in financial services litigation, contentious regulatory and competition work, restructuring and insolvency disputes as well as white collar crime matters. Partners from the London litigation group will be in Australia and New Zealand for face-to-face meetings and interviews at the end of April.

To arrange a meeting, or simply find out more, contact Michael Bromley or Maciek Motylinski on +61 2 9266 2900 or at ea@ea-int.com.

In Perth and Brisbane, the market is continuing to thrive with the resource boom still underway. Industries such as mining, construction and infrastructure are all obviously busy, but the knock on effect extends outwards to include companies servicing the boom such as transportation or service companies, amongst others.

In Melbourne and Sydney the market is steady, predominately in the IP and technology related sectors. There are, however, certain industries that are suffering, with retail and associated industries down due to the much documented decline in the profitability of the leading retailers. Also well-publicised has been the shedding of jobs at the big four banks, with the reality being that lawyers looking for an in-house role in banking and finance are likely to have difficulty in the current market.

The irony of the downturn in certain industries is that in-house teams across the board are extremely busy. However, with persisting concerns surrounding market volatility, in-house legal teams, particularly in international companies with offshore head offices, are having difficulty getting approval for headcount.

For the rest of the year however, the outlook is positive. International market unpredictability is settling as Greece heads towards a solution in Europe and as the United States shows signs of economic improvement. In New South Wales, a raft of planned government infrastructure projects are expected to increase market activity and result in headcount freezes being lifted within the construction and infrastructure sectors. With these teams already stretched, we anticipate that a little increased market confidence and activity will culminate in a tipping point, resulting in a strong demand for in-house lawyers. The experience level required will predominately be at the 2-7 year level, as is standard.

For further information on the in-house market please feel free to contact Andrew Murdoch on 9266 2900.

Congratulations to all of our former candidates who have been recently promoted to partner at Magic Circle and White Shoe US firms!

These lawyers are now partners at firms like Freshfields, Kirkland & Ellis and Walkers Global. Admitted as late as 2005, it is impressive to see such progress so early in their careers. It is exciting to see that great people can advance overseas and often do so faster than at firms in Australia.

Senior Associateship and Your International Career

Progression is one of the most misunderstood aspects of making an international move. It starts with the perception that making Senior Associate in Australia will have an impact on one’s ability to progress overseas, or alternatively, will affect the offer one receives. The reality is actually very different.

Firstly, the Senior Associate title and the significant wage increase that it brings is a uniquely Australian concept. International firms pay on a “lockstep” basis, so while some have titles between Associate and Partner, there is no corresponding large jump in salary. If anything, the title is more to do with seniority than merit. At most firms it is merely indicative of a certain PQE level, regardless of competence or achievements.

Secondly, international firms looking at Australian and New Zealand lawyers make offers based on the totality of peoples’ experience, not on the title they possess. This makes complete sense given that it takes longer to make it to SA at some firms over others in the Australian market. It is only right that titles are essentially irrelevant, as they would be quite unfair to compare, particularly when many firms don’t have a corresponding “Senior Associate” title at all, just “Associate” and then partnership.

Finally, most international firms when hiring are looking for people at the 2-4 PQE level. It tends to be more difficult to relocate with increasing seniority. The result is that many who decide to wait for the “Senior Associate” title with a view to improving their chances overseas, actually do themselves a disservice and ultimately limit their options of making a move because they become too senior. .

Making Partner Overseas

The second misunderstood element about international career progression concerns the partnership track.

Obviously the partnership track differs from jurisdiction to jurisdiction, and is highly dependent on the firm itself. However, it is certainly the case that in recent years people have been made partner faster in the Magic Circle than at the top tier in Australia. The reasons for this are complex.

The partnership track in Australia seems to be lengthening an extra 6 months every 2 years or so. It presently stretches out to about 12+ years in the top firms. We expect the pressure that firms have put themselves under for international tie ups will only make matters worse. As partnerships enter global equity pools, pressure will be on individual partners to increase their own profitability. However, increasing fees to achieve this is difficult – billing out in Australian dollars to clients that are used to certain prices means there will be resistance at that end. This strain will make it a lot tougher to justify an increase in partners in Australia, especially for the larger firms. So while mergers create opportunity, the reality of having to increase profitability while keeping fees steady can only mean one thing for progression.

That said, for those who regard partnership in Australia as the ultimate aim, an international stint is certainly neither a barrier nor a delay by any means (a quick glance through the biographies of current top-tier partners should be reassuring). In fact, many lawyers returning to Australia after an overseas stint find themselves in higher demand because of their international experience, with the result that they are placed slightly ahead of their peers, both financially and in terms of progression.

If you are interested in finding out more about your international career and progression, call one of our international consultants on (02) 9266 2900.