The challenge in attracting newly qualified candidates

Newly qualified candidates (NQs) are the lifeblood of the legal sector, but with competition for top talent being so fierce, firms face a stern challenge in attracting top talent.

Most NQs qualify into private practice rather than in-house because it is the more traditional route. It is perfectly acceptable for NQs to first take the private practice pathway and get valuable experience on their CV before switching over to an in-house role. However, it doesn’t quite work the other way. If an NQ takes the in-house route first, then they would find it much more difficult to switch over. Yet, there are many other nuances to navigate on the road to achieving that sought after role, so NQs need to be prepared. Employers within the in-house sector could also find themselves struggling to attract the right calibre of candidate initially. 

Career opportunities for NQs

It is not uncommon for NQs to leave their firms after a two-year training contract. Typically, this occurs when there is no space in the team that they want to qualify into, or an NQ might want to chase a higher salary at a top City firm or a US firm based in the UK. Alternatively, they may choose to leave for a better work-life balance, flexible working opportunities, and a clearer career progression plan. 

Another obstacle for an NQ is having to deal with the ‘not being retained’ scenario at the firm they have trained at. Unfortunately, this is very common and increasingly so in the current economic market. For example, there are two qualification windows each year, March and September, so June is a good time to recruit for the September window. However, an NQ who has studied litigation might not get the role that they want if firms are not hiring. Those NQs will have no choice but to start looking elsewhere, which can have a knock-on effect. A candidate leaving a magic circle firm may be happy to drop down a level so to speak, and apply to mid-tier firms in order to get the position they want. This however, increases the competition for those NQs who see themselves as mid-tier that have focused solely on attaining a mid-tier position. Having someone from a magic circle firm in the race for the same position might mean they lose out on the role, but means a mid-tier firm can attain a higher calibre of candidate. 

However, in the legal profession, it isn’t just a case of being simply retained or not being retained. Sometimes an NQ can be offered a role working in a different area upon qualification. Firms could perhaps offer more guidance about NQs thinking long and hard around whether they genuinely feel that that sort of opportunity is what they want for their career, and whether they would be happy to work in the practice area offered. If it is a move they are interested in making, then great, but if they are considering accepting it on the basis of trying to make a move when a role becomes available in a new practice area, then it would very difficult and realistically, firms are unlikely to allow the switch.

Attracting NQ top talent

Recently, a US law firm boosted NQ pay by 13%. Some say that it was a well-needed boost in attracting candidates, but what effect does this have on the rest of firms and the expectations on mid-tier, city firm, magic circle, and US firm, NQs? Magic Circle firms like Freshfields have just put up their NQ salary to £100k for NQs on their first year on the job. This raises the bar as it means that other Magic Circle firms will be quick to follow. NQs will now seek out those firms paying the higher figures first, meaning a shift in top talent acquisition across the industry. Overall, this should mean less of an effect on the mid-tier, but magic and silver circle firms will most probably try to remain competitive.

Challenges firms face when attracting NQs

One of the biggest challenges that firms are facing when attracting talented NQs in the current climate, centres on salaries (i.e. US firms paying more) as we’ve already discussed. There is also a huge amount of competition from firms in London and candidates are becoming much more focused on areas such as corporate social responsibility (CSR) policies and dynamic working. Top NQs want to know what the culture of a firm is like and whether or not that firm will be flexible enough to dynamic working before committing. Of course, it can only work if firms deliver on their promises, but is the legal industry ready for a shift towards dynamic working?

Overall, much more needs to be done to break down the traditional ways of thinking and having a rigid approach to the needs of their employees. The gender pay gap needs to be closed and there should be more flexibility around working remotely. The evidence suggests that firms are trying, with one or two really leading the way, but if others begin to follow suit then they will reap the benefits of a more committed workforce and a stronger proposition when attracting the next generation of top talent.

If you are looking to hire top professionals to your law firm, please get in touch with one of our specialist recruitment consultants today, for a confidential discussion.