Talent Wars

Competition for talent is fuelling UK salary inflation. Newly qualified solicitors (NQs) at Quinn Emmanuel now command up to £180,000.

In the past this phenomenon was blamed on US-headquartered firms with deep pockets, but British firms have closed the gap of late. The Magic Circle generally offers NQs £150,000, while most firms in the UK top 30 hover around or above the £100,000 mark.

Meanwhile, talk of star partners being hired for millions underlines a pervasive pressure to secure the best talent at all levels of seniority.

Hand in hand with recruitment goes retention. Firms are rightly keen to retain their trainees, who represent both a major asset and a significant investment. They succeed in this to varying degrees, as the latest figures show.

Watch: An In-House Counsel View of Talent

Alison Freshwater, Head of Private Credit Structuring, Aberdeen Investments

Beyond Pay: Non-Financial Retention Drivers

According to Chambers’ Annual Legal Talent Market Report, salary alone does not drive retention. The study found that, while trainee lawyers at top US and Magic Circle firms work similar hours, those at US firms report less stress than their Magic Circle counterparts. This suggests that support structures and wellbeing could matter more than hours per se. Firms investing here may be able to develop a competitive differentiator.

Non-financial factors generally dominate retention decisions. Opportunity for promotion and more interesting work rank highest among trainees' priorities, followed by work-life balance and clearer career progression.

Notably, retention is weakest among under-represented groups: only 48% of ethnic minority trainees plan to stay five years or more (compared to 61% of non-ethnic minority trainees), and only 47% of neurodivergent trainees view partnership as realistic at their current firm (compared to 66% of non-neurodivergent trainees).

Firms with diverse senior teams may be better placed to retain these groups if junior lawyers can envision their own advancement there.