Stabilisation of lawyer salaries marks post-pandemic shift

According to Realm Recruit's annual salary research, the average pay for legal professionals has seen a modest 2% increase since 2023, falling behind the pace of inflation. However, firms continue to value experience, as evidenced by increased salaries for lawyers with four to six years of post-qualified experience across various practice areas, notably private family and Court of Protection.

Non-qualified fee earners have also seen salary increases, particularly in private client services, highlighting firms' recognition of the value these individuals bring to their teams.

Senior lawyers and partners are experiencing continued salary growth, with significant increases observed in catastrophic personal injury, litigation, and private client sectors.

Realm Recruit's comprehensive salary research, detailed in its Spring 2024 Salary Guide, draws from placement data over the past year and insights from practice-area specialists.

Kelly Reid, Associate Director at Realm Recruit, notes a shift in the landscape, stating, "While pay remains a top priority for lawyers looking to move, economic pressures and rising overheads mean that law firms can no longer afford to offer the pay increases we saw in 2021/22 if they are to reach their profitability targets."

Kelly Reid emphasises the importance of a long-term perspective for lawyers seeking higher earnings, urging them to assess firms with strong growth trajectories where they can demonstrate value. She highlights the broader Employer Value Proposition (EVP) beyond salary as a crucial factor in attracting talent in today's market.

The data suggests a recalibration in the legal sector, with firms balancing the need to remain competitive in attracting talent while navigating economic realities and profitability goals. As lawyers navigate their career paths, considerations beyond salary, such as growth opportunities and firm culture, are increasingly influential in decision-making processes.