Historically, bonuses in the UK have been used to both reward lawyers outside of the normal lock step pay scales, and to help firms compete with investment banks who traditionally award large bonuses.  Most of the Magic Circle and leading international firms have structured performance based bonus schemes which form an integral part of annual salaries and even during tough economic times firms were loath to interfere with these.

Admittedly, some firms do exercise their discretion. The “performance” side of different schemes can vary, however many firms pay up to 40% bonus for high achieving associates. While this is for the very few, many lawyers achieve figures above 25%. Our advice with respect to bonuses at firms that take a performance based approach is to expect something in the low to mid teens if averaged out over good and bad years. For transactional lawyers it does tend to be on the higher side simply because of the consistency of billing and work flow (which is generally the biggest issue in this market at the moment).

Firms in the U.S. and a handful of other international firms usually pay firm wide bonuses based on year of admission or firm performance against set thresholds. This is due to a general collegial approach to practice, which might sound a touch far-fetched given the rather different firm cultures in place in Australia; our firms tend to be both more secretive with pay and bonuses, and generally more meritocratic rather than collegiate in their approach.

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

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As for different parts of the market, London remains particularly strong in the TMT and IT space. There are excellent options at MC and other international firms especially if you have Outsourcing experience. Banking & Finance remains busy; however firms have been taking their time. The transactional teams tend to be hardest hit once bonuses are in people’s accounts so we expect more urgency from firms in the coming months. Outside of this we have had new roles for Litigators, Financial Regulatory lawyers, Competition Lawyers and Projects lawyers come up with some consistency. It will surprise no one to hear that M&A has been one of the more difficult groups to place into, however we certainly have options. We get the sense that many Corporate lawyers are trying to sit it out in their present roles rather than make the move – so there is actually not a great deal of competition in the market. That’s not a bad thing for the opportunistic M&A lawyer but obviously the bar is very high.

The Middle East continues to move along pretty nicely. We have been helping a number of firms hire people into their Finance, Corporate, Litigation and Construction teams. There are very good roles at the moment in Dubai, Abu Dhabi and Doha if you have the right experience. Partners on the ground continue to tell a positive story about their view of the market moving forward, so no doubt there will be other roles coming up in the next few months.

As for Asia, well, our assessment is that for an Australian or New Zealand lawyer nothing has changed – at all, all year, or for that matter really for the last two years. It’s all about language skills. Sure, there are International Arbitration groups in Singapore and Hong Kong with roles, and the odd Project Financing role in Tokyo, but we would have said the same thing in April 2011. We have had the odd role in Employment and Projects come up, but they are few and far between. Obviously if you speak Mandarin, Japanese or Korean at a reasonable level it is a different market. We have great roles in financing and corporate teams across the region but outside of this, movement at the associate level tends to be internal or restricted to a small sample of options for people who have been in the right place at the right time.

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

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The bar is very high and so it is understandable that the entire process can seem quite arduous. With this said, firms are hiring Australian and New Zealand lawyers in the UK at the moment across a variety of groups. Interesting roles have also come up in other parts of the world, especially for corporate lawyers in Dubai, Abu Dhabi, Singapore and the odd role in London and New York.

Outside of this there are some amazing opportunities for senior employment, project finance and corporate lawyers which are extremely rare. These roles offer compelling opportunities for medium term advancement. It is always a bit tougher for senior lawyers to move for both personal and professional reasons, however if you have come to a point where progression in the medium term looks unlikely it is well worth speaking with us about places where partnership is a realistic prospect.

Given the state of the market, timing is everything. We have seen significant evidence of how this can work for and against many of our candidates in the last few months. Firms are hiring, but once they start the process, it isn’t long before it stops.  Waiting even two weeks to get your CV together and putting in your application may mean missing out, leaving lawyers in some groups without further opportunities for at least another 6 months – sometimes longer. The employment, corporate and project financing roles in Asia, given their rarity, are perfect examples of this.

Finally, the market in Australia remains extremely weak, so if you are looking to either move laterally, or return home, our advice for this month is to be ready for when roles come up. Be able to jump on them right away when they do, as they won’t be around for long.

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

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However, more recently, there have been small glimmers of hope that things are beginning to improve. This change is partly related to the significant down turn in the Australian private practice market which is suffering the most significant trough since the depths of the GFC. It is also partly due to the drop off in commodity prices which have had an inordinate affect on the national firm players. Many companies, particularly those directly or indirectly involved in the energy and resources sector, have as a result of this decrease put a hold or cancelled altogether expansion projects. This of course has a flow on effect across many of Australia’s leading law firms, with their transactional, advisory and contentious teams receiving much of the blow. Added to this have been structural changes that are occurring at many firms following on from the spate of international mergers that have taken place in the past few years.

The flip side of course is when such cost pressures come to bear, often companies begin to farm out less legal work to their panel firms and instead look to do more in house where it is needed. On the back of this over time one would expect there to be more in house legal roles across most sectors as the months go by. We have seen a slight increase in the overall volume of roles across areas such as technology and media, FMCG as well as financial services. Whilst such changes are promising, we are still a long way off where we were even 13 months ago and the market remains a challenging one. Added to this is the fact there are more excellent quality candidates vying for the roles that do come up. Even minimal redundancies and cost pressures within law firms and in house legal teams will lead to a spike in the overall pool of candidates. There is particularly a lot of pressure at the more senior end of the spectrum.

There are of course many things you can do to stay ahead of the curve and give yourself the best chance to secure your next in house move and we are more than happy to assist you with market information and how to maximize your chances.

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

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As we have noted over the last few years, international firm movement into the Australian market has created a state of flux. It’s clear that the varying strategies that local firms have used in order to take advantage of the international market – alliance, half-merger, full-merger, partnership, and so on – have not necessarily been sources of stability and opportunity for lawyers. Coupled with the significant downturn in corporate, energy and resources work during the second half of 2012 there is a real sense of trepidation in some practices.

This volatility is likely to persist as newly branded firms continue to respond to prevailing economic conditions. The pressure within some practice groups in the wake of last year’s merger/alliance marathon has already prompted significant movement – we’ve seen partner’s jump from top tier firms to global firms and their newly established Australian offices, as well as erratic and unpredictable lateral movement between lawyers in the top tier generally.

We are highly aware of the teams that have made redundancies and the significant pressure that is building within select practice groups. Having weathered the GFC not so long ago, we are confident that we can offer sound advice on how to best position yourself internally and in the market generally.

We constantly speak with law firms and in-house counsel throughout Australia and in over 30 countries worldwide so are well placed to advise you on all of your potential options, whether you decide to stay or go. Given the reach of our client network we are fortunate to be able to heed trends before most in the market. Our track record speaks for itself.

Many of you have told us that you are under significant pressure; this might be due to billing issues or because your firm has decided your team has a surplus of fee earners. If you’re in such a situation, the best way to ride out the storm is to be as informed as possible. We take our role as careers advisors very seriously, and can tell you which way the wind is blowing. Call us for a confidential discussion on +61 2 9266 2900 about the market and for advice on your future career.

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In the “technology” space, whether the acronym is TMT, IP/IT, or IPT we have seen a marked increase in business activity in the UK and this is starting to drive increased interest in hiring. This may be linked to a number of factors – the birth of new technologies and continued dependence on innovative web-based products makes this sector a growth area worldwide. Ultimately, it has been largely motivated by the UK’s strong performance in IT Outsourcing Projects in particular. In fact, a recent study by the Information Services Group reveals that the UK is currently the global centre for IT outsourcing work, after recording a significant increase in outsourcing contract values for 2012. This is due to the forecast of not only larger value contracts but a steady increase in contract numbers due to more market restructurings, an increase in multi-sourcing, constant contract re-negotiation, and new contracts from emerging users. Thankfully, the outlook remains positive for 2013.

Obviously IT Outsourcing teams are smaller than the large finance practices, so the opportunities are still somewhat limited, but we are working with Magic Circle, Silver Circle and leading US firms in this space and foresee continued demand in 2013. The bar will remain high, but there are some fantastic options for people with over three years experience to work with some of the leading practices in the northern hemisphere. Admittedly most of the work is in the IT/Outsourcing teams, so contentious IP lawyers and pure IP lawyers will still find it difficult to secure a role from Australia. Historically, we have found that lawyers with this kind of experience may find more success “on the ground” in London. However, signs are positive that as more opportunities arise even those with contentious experience who want an international career may find it a good time to seriously consider their options.

As for Competition groups, we have seen significant improvement in the Brussels and UK markets and are working with a number of Magic Circle firms on opportunities for lawyers with between 3 and 12 years of experience. In particular there has been a slow but steady increase in contentious competition work over the last few years and firms see this as being a busy area moving forward, particularly in light of the UK government’s proposal of ‘opt-out’ collective actions for competition claims, to encourage more private litigation of competition law. Therefore, those sitting in general commercial litigation teams who have significant competition litigation experience may find that they have a number of previously unconsidered options open to them.

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

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While these rates are slowly returning to pre-GFC levels, this is certainly the most positive environment we have seen since mid-2010. What this means for finance lawyers is that there is great potential to speak with a variety of firms and to have an affirmative choice about where you take your career in one of the world’s leading financial centres. We have roles with Magic Circle firms, leading White Shoe US firms, Silver Circle firms, and even the odd national firm to keep things interesting!

There are a few very good reasons why firms are looking to bolster numbers, and most of them are positive. With balance sheets flush with funds, many of the world’s leading Private Equity and Hedge Funds are ramping up investments in Europe. As stability returns, there is a concurrent improvement in sentiment within finance teams (who remained in demand throughout). The flow on from this is that Banking and Leverage Finance teams in particular are busy and have been reporting solid pipelines for this year.

Further, the strength of key global exchanges (especially the FTSE, now sitting at a five year high) is another source of confidence. Anecdotally, we have found that when the FTSE is over 5700 points for over two months there is a strong correlation to increased finance hiring. It is also clear that securitisation and different structured products are making a return in Europe, which is seeing increased Asset Finance deals and also some positive movement in the Derivatives sector. Finally, many lawyers like to take advantage of different roles in the New Year, so firms are simply actively replacing people that they have lost.

Obviously no one knows how long this upswing will last. However, evidence from the last few years suggests that hiring tends to work in fits and spurts, so it is well worth taking advantage of the present environment if you want a career in the UK.

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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But why would you join a smaller (perhaps less well-known) US alternative to the likes of the Magic Circle options? The first reason might be to make more money. US firms both in London and elsewhere pay salaries in line with their New York offices. In London, for example, pay can exceed 20-30% of what a major UK firm can pay. They also often have more lucrative bonus structures in place.

Secondly, greater opportunities to progress your career can be a major draw card. A US firm can be a very good place to advance your career. There are a combination of factors that come into play on this point but one of the foremost reasons is the significant expansion of many of the US firms on mainstream and emerging markets, London being a good example. Following on the back of the GFC, there has been a significant amount of consolidation in transactional areas like finance and M&A. This has seen a number of high profile partner moves out of the major UK firms to expand the presence of their firm in London. This creates opportunities for mid to senior level laterals not only to move into US firms but also to provide scope to move up in the medium term. We have seen time and again lawyers get to partner level with this type of firm but you have to be opportunistic and assess each team on its merits and in the context of future growth opportunity.

In many instances, smaller US teams will struggle to compete with larger UK firms due to perceptions about quality and volume of work. The US firms have to think laterally in terms of their hiring strategies; at this stage, Australian and New Zealand lawyers often become an attractive option. For the commercially focused lawyer who is looking to make the most of their overseas move on the ground floor of a start up or at a smaller firm in expansion, there is plenty of opportunity.

Finally, US firms are notoriously meritocratic. Those lawyers willing to work hard and position themselves for the long term will have the same opportunity to progress as anyone in the team. This can be contrasted with the lock-step approach to progression that dominates Magic Circle firms. Aus/NZ lawyers aren’t hired to be work horses in these smaller teams but key members who make their mark will have the same opportunities as anyone else in the firm.

Our advice to any lawyer looking to take their career overseas is to really consider US opportunities. As the demand for finance and corporate lawyers continues to increase overseas, lawyers should be weighing up all of their options and many of the elite US firms provide a great alternative.

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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This year we have had people interview and accept roles in London, New York, Dubai, Abu Dhabi, Doha, Paris, Frankfurt, Brussels, Singapore, Tokyo and Hong Kong. We have also significantly grown in the Australian market. Given our focus on international and growing firms we have been fortunate to help many clients throughout Australia and will continue to offer our unique level of specialised service to clients and candidates alike in 2013. We are especially proud of focusing our efforts on providing lawyers with a higher level of service and knowledge – this year we published two Cost of Living guides to educate lawyers on the reality of a move between jurisdictions, and continued to publish the most relevant news on hiring trends in the market. EA also has a steadfast reputation as “trusted advisor” in career-related decisions. Whether it is to help find a new job now or in two years, or whether we’re simply an informative opinion on how to best approach your review or position yourself for promotion, we are very much here to help our candidates for the long term. EA is not simply about the role – we work hard to build relationships that we hope can last for decades.

We have taken great pride this year in seeing a number of our former candidates make partner at Magic Circle, US and leading international firms. Many of these talented men and women started out with us over ten years ago as developing associates in the Australian top and mid-tier, and have since progressed to some of the most prestigious legal offices in the world. The cocktail of their success is one that is still relevant for ambitious lawyers today – be confident, seize opportunities as they come, and know your way around the intricacies of an overseas relocation. In September, we wrote a piece aimed at the junior lawyer about the need to shed reluctance and move proactively, even as negative news headlines unsettle the industry. These lessons in certainty were embodied by these successful former candidates from all over the world; we’d love the chance to get you there as well.

As for the recruitment market in 2013… well, the next three months will play out in a similar way to most of 2012. A very flat Australian market, but an increasingly busy international market. International firms overseas are hiring in specific practice groups, Australian and New Zealand lawyers are still wanted in these teams, and people from leading firms with strong academics and the right level of experience will get jobs. It won’t surprise anyone to hear that there is no demand internationally for Corporate/M&A lawyers save for mid-level private equity lawyers in London (and we anticipate this will continue for the first quarter of 13).

However there is real and rising demand for financing lawyers. We anticipate this will only grow next year as work increases and the limited candidate pool places significant supply-side pressures on firm hiring. Right now we have banking and finance roles with firms in London, Cayman, New York, Frankfurt, Dubai, Singapore, Hong Kong, Shanghai and Tokyo, and elsewhere! Obviously the bar remains high, and like with all practice groups, firms want people with at least 4 years of experience. However, if you consider we now have well over a dozen roles in London alone up from half that many just two months ago, it is pretty clear that there is a growing need in the financing space and this will continue into 2013.

As for other practice groups, IT/IP remains strong in the UK and Asia with a number of international firms currently hiring. Litigation is still busy – particularly in the UK. Financial services lawyers are always of interest to international firms. Although the projects and energy space in Australia has slowed, there are still a number of good overseas options. Obviously the Australian market is difficult right now (in our view it is the hardest market in at least 3 years), however the recent widely-publicised redundancies firms have made will end up feeding into greater demand.

The team at EA would like to thank you all for making 2012 another great year and wishes everyone a very safe and happy Christmas and New Year season!

If making an international move is on the cards for you, get in touch with one of our Senior Consultants on +61 2 9266 2900 as soon as possible for a confidential discussion about the legal market.

But a few years have passed – and while you are now a better lawyer, having worked at a Magic Circle or top-US firm, you cannot shake that innate desire to return home. This is a perfectly normal feeling – at EA International, while we have witnessed many candidates stay on at their new international locations (even making partners), plenty more do their 2, 3 or 4 years overseas and come home reinvigorated and ready to join the Australian workforce once more. So, for those lawyers wishing to uproot their lives for a second time –how will firms view your time spent working overseas? What impact will this have on your career progression prospects? And what is to be expected in the domestic legal market?

Deciding between a return to your original firm or starting afresh is a tough choice when looking for a position back in Australia. Many people who do return to their old firm ultimately move on again – this can be for lots of reasons, but is related to the fact that once you have had a different experience, and are a different lawyer (if not a different person) it might be difficult to rejoin the same team. The decision essentially rests on what opportunities are available and whether or not you have maintained relations with your old workplace, though it is important to note that in the cut-throat world of commercial law it is not any sense of ‘loyalty’ (whatever that means) which will make you stand out.

Rather, your point of difference in a fluctuating local market is your international experience. Firms recognise people crave this experience – simply look at the fact that the majority of partners at the leading firms have all done a stint overseas – and have no qualms about hiring (or re-hiring) people who have had the guts to make a move. The idea that taking time overseas will annihilate your chances of becoming a partner at an Australian law firm is completely misguided. The ‘track to partnership’ (if a concrete ‘track’ can even be said to exist) is currently at least 12-15 years in Australia – many leading firms are struggling to provide even this. Though you will generally return at a similar level to your peers that stayed, ultimately in the long term a lawyer with international experience at a Magic Circle or Silver Shoe firm will be able to demonstrate that they are a better lawyer with more experience working on a higher volume of matters with an international flavour. In the end, what we have found at EA International is that it is these kinds of people – independent go-getters willing to take risks – who will reap the rewards of career progression, as opposed to those stuck in the 20^th Century mindset that loyalty to a company for 10, 20 or 30 years and plodding along doing the same work with the same people will eventually pay off.

Overall, the news is positive. At the moment, the market is a difficult one in Sydney and Melbourne, with some opportunities available, but it is Perth and Brisbane that are currently leading the charge. With the market the way it is, it is advisable to start looking for a job back home while you are still working overseas, so that you have a certain degree of security when preparing for your return. Moreover, many Australian firms have now started assisting with relocation costs.

For further guidance on returning to the Australian legal market, or if you think it’s time to bite the bullet yourself and make an international move, please feel free to contact us on (02) 9266 2900 or email ea@ea-int.com.