ALPMA Releases Results of its 2013 Legal Industry Salary Survey sponsored by Legal People
Announcement posted by Australasian Legal Practice Management Association 15 May 2013
The Australasian Legal Practice Management Association (ALPMA) today released the results of its 2013 Australian Legal Industry Salary Survey, proudly sponsored by Legal People.
The survey is the most comprehensive, independent annual survey of salaries for legal professionals, senior executives, managers and administrative staff at legal firms in Australia, collecting data for 69 roles. This year, 218 firms of all sizes from across the country completed the on-line survey.
”ALPMA’s Australian Legal Industry Salary Survey provides critical insight for law firms in developing competitive compensation strategies. Getting this right is a key part of addressing the number one HR challenge for the industry - attracting and retaining quality staff,” ALPMA National President, Mr Warrick McLean said.
“The survey provides a single, reliable source of data so our members can benchmark salaries for all positions in their firm against similar firms, refine their remuneration strategy for next financial year and ensure they are across the remuneration and employment trends across the industry.”
“We are delighted to see another record number of firms participating in ALPMA’s Legal Industry Salary Survey making it an even more useful source of information in the salary and performance review cycle now occurring in many firms throughout Australia” Sharon Henderson, Partner at Legal People said.
Pay Rises Expected for Most Legal Industry Employees in FY14
“The good news for employees is that most law firms (90%) are planning pay rises for next financial year, with 48% of law firms intending to negotiate individual pay rises higher than the CPI (down from 53% last year), while 32% are planning on offering rises in line with the CPI,” Warrick McLean said.
“You are most likely to negotiate a pay rise higher than CPI if you work for a small firm or a very large firm (150+ employees),” he said.
“However, a steady 10% of respondents are planning a wage freeze for next financial year,” he said.
“Last year, 83% of those planning a wage freeze were from small firms (less than 25 staff), but this year there is an even split between respondents from small firms (less than 25 staff) and mid-sized firms (25-74 staff) who plan to put salary increases on hold.”
Lawyers Remain Most in Demand
Most firms (80%) expect to recruit lawyers/solicitors next financial year, with 55% likely to recruit secretarial staff and a further 39% recruiting paralegals and 30% administrative staff.
“Far fewer firms believe it is likely they will need to recruit executive and managerial staff,” he said.
Only 2% of firms plan to recruit Knowledge Managers, 6% plan to recruit senior executives, while 13% plan to recruit IT Managers.
Managing Partners, Staff at largest firms & WA Staff Paid Highest Estimated Average Salaries
Not surprisingly, Managing Partners were the best paid of all 69 roles surveyed, while lawyers/solicitors earn the highest estimated average salary at large firms with more than 150 staff for 11 out of the 13 legal professional roles surveyed.
For the first time this year, the survey included a breakdown of salary data by role for firms based in Western Australia, as well as those in New South Wales, Victoria, Queensland and South Australia.
“It was interesting to note that WA records the highest average estimated salary for most lawyer/solicitor roles (11/13 roles surveyed) and for 26 out of the 69 roles surveyed overall,” he said
This result may reflect the strong demand and health of the legal industry in Perth or the small sample size (3.2% of all respondents were from WA).
“Despite the small sample size in WA, the results are consistent with our own observations that WA leads the way in offering the highest salary levels relative to other Australian States” Sharon Henderson said.
“ALPMA is actively building its presence in Perth, with a newly appointed WA Committee putting together a program of local seminars in FY14, so we we will keen to see if this result continues next year,” Warrick McLean said.
Most bonuses determined on individual performance measures
For the first time this year, firms were asked about bonus arrangements for staff, with 69% of firms indicating they offered bonus payments to staff. Of these, 65% of respondents indicated that bonuses were determined by individual performance measures, 7% by firm performance measures and 26% used a combination of individual and firm performance measures.
“Our experience indicates that bonus structures and calculations vary considerably between law firms and at what level of experience this is offered. Whilst individual performance is the most weighted measure of bonus calculation, many firms also look at other non-quantitative measures, as illustrated in the survey results. It is very important that firms clearly articulate their bonus calculation to staff to avoid any confusion.” Sharon Henderson said.“
A wide range of other employment benefits is offered within the industry, with the most common being professional association membership (70%), flexible working hours (68%), mobile phone or mobile phone allowance (64%) and company paid training (60%).
Employment Mix Varies by Firm Size
Most firms employ a mix of permanent full-time and part-time employees, contractors and casual staff. This mix varies by firm size, with the percentage of contract and casual staff increasing as the firm becomes larger.
“Having a mix of permanent and contract staff is critical for firms in managing workload and ensuring staffing levels are matched to meet fluctuating and forecast client demand. Getting this balance right is key to firm profitability, “ Warrick McLean said.
The most comprehensive, independent report on salaries for all roles at law firms
The ALPMA Australian Legal Industry Salary Survey Report provides a detailed review of salaries paid for 69 roles within legal firm, spanning legal professionals, executive, management and administrative staff categories at law firms, and differing levels of seniority and experience for each category. New roles included this year included managing partners and business development managers.
The ALPMA Australian Legal Industry Salary Survey Report shows the highest and lowest salary paid for each role, and the estimated average salary paid. Salaries for each role are also broken down by size of firm and by State, allowing companies to benchmark their remuneration strategy for each role with similar firms.
Other information provided in the report includes anticipated salary movements, recruitment plans, employment benefits, bonuses and staff employment arrangements.
The ALPMA Australian Legal Industry Salary Survey Report is provided free of charge to all participating firms. Non-participating firms can purchased a copy here for $550 (ALPMA members) or $2,200 (non-members
FOR MORE INFORMATION
About the Salary Survey: http://www.alpma.com.au/Research/salary-survey
About the HR Challenges for Law Firms: http://www.alpma.com.au/Research/hot-issues-in-hr-for-the-legal-industry-survey
ABOUT ALPMA
ABOUT LEGAL PEOPLE
Legal People is a leading and highly reputable, specialist legal recruitment consultancy successfully operating in Melbourne for nearly 40 years. Legal People recruits high calibre people for the legal profession at all levels and areas of law including lawyers (up to Managing Partner level), legal/executive/personal assistants, law clerks/paralegals, human resources, marketing, IT, office services and practice managers. Legal People’s client base is broad ranging and well established including law firms of all sizes, corporate organisations and government departments.