Law firms increase referral bonuses in battle for talent while NQ salaries continue to rise
updated on 09 September 2024
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US law firms Kirkland and Ellis International LLP and Paul Weiss are offering large referral bonuses of £38,000 in a bid to attract the best talent. At Kirkland & Ellis, this is double the incentive from last October.
Referral bonuses are becoming more commonplace, with Paul Hastings (Europe) LLP and Goodwin Procter (UK) LLP also offering substantial bonuses Edward Stratford, co-founder of recruitment firm Fort Stratford Partners, explained that: "Law firms are in a strong financial position – they've all posted pretty strong financial results and lateral hiring remains a top strategy for growth."
The war for talent is also driving up newly qualified (NQ) salaries, with Kirkland and Ellis and Paul Weiss offering £164,000 and £180,000, respectively. Eversheds Sutherland (International) LLP has also increased NQ pay to £100,000 in London and £65,000 outside of London.
NQ salaries at Simmons & Simmons LLP have also risen across the UK. The firm boosted London wages by 11% to £120,000 and Bristol NQs will receive a 10% increase to £76,500. The firm’s Bristol NQs are also eligible for a ‘Bristol Market Adjustment’, which can add 10 to 20% to their compensation based on performance.
Meanwhile, Slaughter and May has announced a 20% increase in pay to £150,000, bringing it in line with its fellow magic circle firms including A&O Shearman, and Clifford Chance.
A spokesperson for Slaughter and May stated: “Our approach to pay reflects the firm's values, allows us to attract and retain the best talent, and ensures that we maintain our culture of excellence and collegiality.”
