suvey rve 20 2002 4 - mahlab 2004.pdf · company secretaries 17 ... despite this increase in...

rve 200Su vey 20 4

rve 2002 Survey 2004

Introduction 1–2

Private Practice 5–8

Partners 9–10

Corporate 11–15

Contract 16

Company Secretaries 17–18

International 19–20

Marketing 21–22

Human Resources 23–24

Knowledge Management 25–26

Patent Attorneys 27

Figures contained within tables in this survey have been rounded to the nearest $500 and are quoted in local currency.

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© Mahlab Recruitment (NSW) Pty Ltd 2004 © Mahlab Recruitment (VIC) Pty Ltd 2004

Mahlab Survey 2004 page 1

Introduction

04

Welcome to Survey 2004Survey 2004 provides detailed information regarding salaries and employment trends in the legal profession not only in Australia but also in Asia, the UK and North America. Information is provided in relation to private and in-house practice (including company secretaries), patent attorneys and management support professionals in the areas of marketing, human resources and knowledge management.For the fourth consecutive year, the participation rate in our survey increased and responses to our online survey, hosted at www.mahlab.com.au, were at record levels this year. Information has been sourced through questionnaires distributed nationally, supported by up-to-date data collected from our client and candidate base here and overseas in the course of the last financial year with an emphasis on data which reflects post -1 July 2004 reviews.

We would like to thank the following organisations for supporting Survey 2004, namely, the Australian Corporate Lawyers Association, the Australasian Professional Services Marketing Association, the Legal Precedents Network, Chartered Secretaries Australia Limited, Victorian Women Lawyers and the Young Lawyers groups in both Victoria and NSW. Members of all these professional associations were invited to participate nationally and this has allowed us to broaden our sample and to capture very specific and focused data.

Salary increases in the last 12 months have reflected a particular focus on rewarding and recognising strong performance. Employers are somewhat more optimistic than they were in the previous 12 months and increases overall generally remained steady.

In private practice, reviews have averaged an increase of 9%. In recognising exceptional performance, some lawyers (particularly those at the more junior to intermediate levels) who have demonstrated a significant contribution to the business have been awarded increases in excess of 24%.

Whilst fewer partner appointments, particularly in the top tier, appeared to be made this year, the number of senior associate promotions reflects optimism in the market as well as recognition of the need to adequately reward and promote valued employees at a critical time in their career. The greatest lateral partner movement over the past year has been to the mid tier firms.

Managing costs and performance within the business and the drive to ensure all staff work effectively and efficiently has remained a particular trend this year. The emphasis on strict performance management has continued and it is expected this will remain a focus for at least the next 12 months.

Corporate practice continues to be a popular career alternative for lawyers. The corporate market has remained steady with a number of attractive options becoming available in the past 12 months, particularly ‘greenfield’ roles where organisations have appointed in-house counsel for the first time.

Corporate contract opportunities have continued to increase steadily with the majority of opportunities for fixed term appointments being for 3 to 6 months. Salaries in the corporate market have averaged an increase of 5.22%.


04The international market saw a flurry of activity in the early part of 2004, with a number of major UK firms conducting campaigns in Australia. The demand for high calibre Australian and New Zealand lawyers continues to grow, although salary ranges in the UK and Asia have remained relatively stable.

The demand for professional support roles has continued, with firms focusing on activities and skills that demonstrate a clear return on investment, including business development and knowledge management. Firms have been particularly keen to attract quality candidates in these areas and have sourced talent from a broader pool of candidates than the traditional professional services sector.

There has also been an increase in activity, particularly in marketing roles, in Asia and the UK. Salary reviews across professional support roles have ranged from 5.47 to 6.68%.

Thank you to all who participated in Survey 2004 and particularly to those of you who worked with us to produce a superior information source and provide a better understanding of the issues and trends facing our profession.

We are committed to continuously improving our annual survey and encouraging greater participation and distribution. We welcome your feedback and also invite you to contact us or any one of our experienced consultants for any further information or specific advice on any issue.

Katherine Sampson Lisa GazisManaging Director – VIC Managing Director – NSW


Private Practice

04

The 2003–2004 financial year set off to a good start with a comparatively high level of recruitment activity, particularly by the top tier firms. This level of activity continued to increase steadily throughout the year, with mid tier and smaller firms following suit. Despite this increase in staffing needs and a less conservative approach to appointing staff than the previous two years, there continued to be a focus on strategic growth, the development of specific practices and an application of strict business criteria to all recruitment.Once again, the highest demand for lawyers remained at the 3–5 year post admission level. There was also an increased demand for high calibre Australian lawyers returning from overseas and for lawyers at senior associate and partner level.

In this financial year, Sydney and Melbourne experienced heightened activity in corporate law (mergers & acquisitions), banking & finance (property, corporate, project, and structured finance), tax (indirect and direct), intellectual property and employment relations law. The high demand for commercial property and construction lawyers that was observed in 2003 stabilised after last year’s rapid growth in those areas.

In the past 12 months, Canberra, Brisbane, Adelaide and Perth firms recruited actively in the areas of corporate/commercial and commercial litigation. Notably, there was an increased demand for lawyers across most practice areas in Perth, Brisbane and Adelaide, with native title and environmental lawyers especially in demand in Perth.

On the salary front, whilst the same level of conservatism exhibited by firms in the previous financial year was not evident this year, large salary increases were still limited. The emphasis again was on individual performances (particularly in terms of billings) and the differences between remuneration levels for high achievers and average performers remained substantial.

Average salary reviews for lawyers this year were approximately 9% nationally. In Melbourne and Sydney, increases ranged from 0% to in excess of 24%. Star performers once again achieved significant increases, with slightly higher increases reported in Sydney, especially in the practice areas targeted by international firms searching for local talent. Most firms maintained their strict qualifying criteria from the previous financial years, with some again dispensing with payment of discretionary bonuses altogether.

In Adelaide, Brisbane, Perth and Canberra, firms adopted a similar approach to salary reviews, although the average salary increases in those states were lower than in Melbourne and Sydney.

Law firms continued to offer the usual range of non-monetary benefits. Examples of benefits offered included professional memberships, reimbursement of post graduate study, management training, secondments, laptops, BlackBerry handhelds and mobile telephones. Firms also displayed an ongoing willingness to accommodate additional ‘lifestyle’ benefits such as gym memberships and flexible work arrangements.


04Survey results suggested a change in factors that would influence lawyers to consider leaving their current position. Quality of work, salary and career development opportunities emerged as more important than work/life balance and a change in organisational culture which featured at the top of the list last year.

This year, a higher percentage of respondents working in law firms indicated that they wished to stay in private practice, seeing their next career step as being with another law firm. Working in-house was again regarded as a popular option with 23% of private practice lawyers surveyed seeing this as their next move.

Significantly, more than half the lawyers surveyed indicated that they were not intending to leave their current role and more than half of the lawyers surveyed were satisfied with the outcome of their salary review.

Survey results also suggested little change in the work habits of lawyers in law firms. Lawyers in top tier firms are still, on average, working slightly longer hours and meeting higher billing targets than their counterparts in mid tier and smaller firms. They are also being rewarded with higher remuneration packages and greater benefits. The gap between work habits exhibited in top and mid tier firms, however, continues to decrease.

The continually increasing emphasis on financial performance, which is prevalent across all tiers, has also impacted on opportunities for promotion. This financial year has seen an increased level of junior appointments compared to the previous financial year. In contrast, partner appointments have not been as abundant and discussions with a range of firms indicate that the track to partnership has lengthened from 8–10 years to 10–12 years on average.

It is anticipated that the current buoyancy in the legal market will result in an increased number of private practice lawyers expressing interest in a move either to another law firm, into the corporate sector or overseas. Firms are already responding to this by searching for innovative ways to retain staff. Personality testing or profiling of lawyers to identify strengths, weaknesses, motivations and values is being employed to assist in developing strategies for rewarding and retaining staff in a competitive market.

All indications are that candidate confidence in the strengthening of the legal employment market is well founded and that recruitment activity by law firms will continue to increase in response to the stronger local and global economy.


Salaries in Private Practice Sydney

Top Tier Firms* Year Level Range Average

Graduate $40,000 – $65,000 $55,000

1 $44,000 – $77,500 $66,000

2 $52,000 – $90,000 $80,000

3 $60,000 – $119,000 $93,000

4 $64,500 – $144,000 $110,000

5 $76,000 – $165,000 $125,000

6 $95,000 – $185,000 $140,000

7-10 years $100,000 – $230,000 $160,000

10 years+ $130,000 – $270,000 $190,000

Mid Tier Firms Year Level Range Average

Graduate $50,000 – $65,000 $55,000

1 $50,000 – $73,000 $64,000

2 $54,000 – $90,000 $74,000

3 $60,000 – $95,000 $80,000

4 $70,000 – $130,000 $88,000

5 $75,000 – $135,000 $104,000

6 $80,000 – $140,000 $117,000

7-10 years $100,000 – $190,000 $142,000

10 years+ $114,500 – $210,000 $150,000

Small Firms Year Level Range Average

Graduate $35,000 – $65,000 $44,000

1 $40,000 – $70,000 $51,000

2 $46,500 – $85,000 $66,500

3 $55,000 – $104,000 $70,000

4 $60,000 – $110,000 $80,000

5 $70,000 – $110,000 $90,500

6 $78,000 – $125,000 $95,000

7-10 years $72,000 – $150,000 $126,000

10 years+ $90,000 – $200,000 $138,000

Figures include superannuation but do not include bonuses or other benefits.

* This category also includes some practices with a strong presence

in a particular city as well as a limited number of boutique practices

04


Salaries in Private Practice Melbourne


1 $55,000 – $65,000 $60,000

2 $60,000 – $82,000 $72,000

3 $72,000 – $86,000 $85,000

4 $84,000 – $100,000 $90,000

5 $90,000 – $130,000 $112,000

6 $93,000 – $168,000 $120,000

7-10 years $102,000 – $220,000 $140,000

10 years+ $120,000 – $220,000 $150,000

Mid Tier Firms Year Level Range Average

1 $47,000 – $65,000 $55,000

2 $50,000 – $71,000 $63,000

3 $60,000 – $90,000 $73,500

4 $70,000 – $98,000 $77,000

5 $80,000 – $136,500 $90,000

6 $85,000 – $125,000 $115,000

7-10 years $95,000 – $160,000 $124,500

10 years+ $102,000 – $200,000 $130,000

Small Firms Year Level Range Average

1 $35,000 – $50,000 $41,000

2 $40,000 – $55,000 $50,000

3 $45,000 – $75,000 $60,000

4 $60,000 – $75,000 $65,000

5 $60,000 – $90,000 $71,000

6 $70,000 – $110,000 $92,000

7-10 years $72,000 – $135,000 $125,000

10 years+ $97,500 – $190,000 $135,000

Figures include superannuation but do not include bonuses or other benefits

* This category also includes some practices with a strong presence in a particular city as well as a limited number of boutique practices

04


Salaries in Private Practice Brisbane


1 $43,000 – $45,000 $43,000

2 $55,000 – $72,000 $66,000

3 $60,000 – $70,000 $68,000

4 $73,000 – $85,000 $82,000

5 $77,500 – $95,000 $90,000

6 $75,000 – $115,000 $98,000

7-10 years $91,500 – $160,000 $131,500

10 years+ $117,500 – $190,000 $161,000

Salaries in Private Practice Perth

Top Tier Firms* 1 $44,000 – $47,000 $45,000

2 $51,000 – $56,000 $52,000

3 $56,000 – $62,000 $58,000

4 $56,000 – $70,000 $63,000

5 $60,000 – $90,000 $78,000

6 $70,000 – $95,000 $85,000

7-10 years $82,500 – $130,000 $90,500

10 years+ $105,000 – $190,000 $125,000

Salaries in Private Practice Adelaide

Top Tier Firms* 1 $44,500 – $59,500 $51,000

2 $48,000 – $73,500 $58,000

3 $51,500 – $82,000 $69,500

4 $56,000 – $92,500 $79,500

5 $66,500 – $112,000 $91,000

6 $76,500 – $128,500 $104,000

7-10 years $86,500 – $168,500 $127,500

10 years+ $117,000 – $194,000 $148,000



04


Benefits Offered in Private Practice

Benefit % of surveyed lawyers offered benefit

Additional leave without pay 45%

Additional superannuation 4%

Mobile phone 29%

Vehicle 3%

Private health insurance 3%

Secondments Local 29%

International 13%

Management training 25%

Flexible work arrangements 38%

Part-time partnership 9%

Gym memberships 25%

Travel Interstate 32%

International 9%

After hours travel allowance 41%

Subsidised meals 31%

Stress management (yoga, massage, chiropractic) 26%

Income protection insurance 24%

Professional memberships 80%

Further study Full fees 42%

Part fees 30%

Study leave Paid 47%

Unpaid 29%

Laptop 25%

Home computer connection 19%

Parental leave 41%

04


The trend that has emerged in recent years for partners, often with whole teams, to transfer laterally to other firms continued in 2003–2004. The greatest movement over the past year has been to the mid tier partnerships. The spread of work available in the last 12 months has meant that these firms have been consistently busy throughout the year. They have been harnessing the opportunities offered by a busier market and have really pushed forward in appointing new partners, acquiring practices, merging with other firms and opening interstate offices.

In particular, Melbourne and Adelaide based firms that have recently opened Sydney offices have made a significant number of strategic partner acquisitions. Such acquisitions include the large scale movement of teams, whole sections, and even entire firms. This movement is a function of the larger national practices rationalising non-performing partners or restructuring their practice groups, which, coupled with the decline of three of the multi-disciplinary practices, has fuelled this trend.

Remuneration is not generally the reason for partners to move from one law firm to another. With the ‘corporatisation’ of major law firms, partners may be keen to reclaim greater control and management of their practices as they become increasingly dissatisfied with the emerging culture of their current firm. Work/life balance is also behind many moves. Transporting their practices to mid tier law firms often enables these partners to achieve their goals.

Mid tier firms do not necessarily require the same practice value threshold as the larger firms. It is often the ‘opportunity factor’ associated with the particular partner, for example, the introduction of a particular skill set or the compatibility of a client base with that of the firm, which is the impetus for the acquisition.

The appointment of fewer partners in the top tier has also resulted in an increase in senior associates from such firms taking up opportunities for a move to strongly performing mid tier firms where they are subsequently offered partnership. For senior associates, particularly those with a portable practice, there are real opportunities associated with a move to another tier.

Another continuing trend is the ‘swinging door’ between in-house and private practice. In-house lawyers are increasingly encouraged to return to private practice, whether as a legal consultant or in a pure management capacity. Again it is the skill set, contacts and the potential client base of the individual that plays a key part in securing these positions.

Partnership income varies from firm to firm and some of the larger national practices recorded a decline in partnership drawings over the past year. This, to a large extent, reflects not only economic conditions but the transition of new lateral partners into firms, which takes some time, slower growth rates within firms and a decline in activity in particular practice areas, all of which may contribute to a decrease in drawings.

Partners

04


Partner Salaries in Sydney

Average

Top Tier Firms* $820,000

Mid Tier Firms $465,000

Small Firms $360,000

Partner Salaries in Melbourne

Average

Top Tier Firms* $700,000

Mid Tier Firms $395,000

Small Firms $275,000


04


Corporate

04

The corporate market experienced a reasonably high degree of recruitment activity during 2003–2004. In particular, the second half of the financial year has seen an encouraging level of recruitment across most sectors of the market. The past financial year has also confirmed that corporations are tending to undertake an increasing amount of legal work in-house and are meeting these demands by strategically adding to their corporate legal teams.

Following the pattern of the last few years, the demand for in-house lawyers in 2003–2004 has primarily been for lawyers with 3–6 years post admission experience. Again, the greatest demand has been for general commercial lawyers. However, candidates with specialist financial services, superannuation, property, construction and resources experience have also been sought.

Most industry sectors have recruited over the past year. In particular, there has been a number of opportunities in FMCG, resources, property, construction and manufacturing. The financial services industry has been particularly active with the introduction and implementation of the recent financial services reform legislation. Although limited in number, roles in media and entertainment have again proved to be extremely popular in the market.

While in-house opportunities have arisen across a wide range of sectors in 2003–2004, there has been a notable increase in the amount of activity in the IT and investment banking sectors. These industries have been quiet in the past couple of years due to the downturn in the global economy and resulting redundancies or recruitment freezes. Of significant interest has been the re-emergence of in-house IT opportunities, particularly from the early part of 2004 onwards.

The senior end of the corporate market remained relatively tight and highly competitive, with only a limited number of high profile General Counsel roles being offered. Despite this general trend, some interesting senior roles have emerged during the past financial year. Often, these senior positions have included significant managerial responsibility and the expectation of and opportunity for career progression into the General Counsel role, making them very attractive to candidates. Due to the limited number of senior roles on the market, more experienced candidates have needed to be flexible in terms of their ‘ideal’ role and willing to consider all options, including contract opportunities and senior positions within government and statutory bodies.

An increasing trend evident in the corporate market in 2003–2004 has been the number of newly created roles or ‘greenfield’ opportunities. Several organisations have recruited their first in-house lawyer during the past financial year. In some instances, this has been on a contract basis initially, with the company adopting a ‘try before they buy’ approach to recruitment.

The number of part-time opportunities available has also increased. These roles have been particularly popular with senior lawyers who have started their own consultancies or those who prefer to work part-time while pursuing personal interests such as ongoing study. Family reasons are consistently cited as the most common reason for corporate lawyers working part-time.


04Corporations have shown in 2003–2004 that they can be flexible as to the location of their legal function. In particular, this has been evident for sole in-house counsel roles. Companies with offices throughout Australia have been willing to base their lawyer/s wherever the preferred candidate is located. This development is particularly encouraging for lawyers in Brisbane, Adelaide, Canberra and Perth, which have smaller markets with fewer in-house opportunities.

A career in-house continues to be highly sought after by a significant proportion of lawyers at all levels throughout Australia. 79% of in-house lawyers surveyed this year wish to remain in the corporate sector, nominating a legal role with another corporation as their preferred career move. Interestingly, 65% of corporate lawyers surveyed said they were not considering leaving their current employer. A career in the corporate sector also continues to be a popular alternative to private practice with 23% of private practice lawyers surveyed advising they saw it as the next step in their career.

Survey 2004 revealed a high degree of career satisfaction in the corporate sector, with 59% of corporate lawyers surveyed advising that they are ‘mostly satisfied’ with their career. Only 4% of corporate lawyers were ‘dissatisfied’.

Increases in corporate salaries were again reasonably conservative during 2003–2004. The average percentage increase in salaries for corporate lawyers for the past financial year was 5.22%, which compares to 5.5% in 2002–2003. The majority of corporate lawyers surveyed advised that they were satisfied with their salary review.

Bonuses are increasingly offered in the corporate market, with 73% of those surveyed advising they are entitled to receive performance bonuses as part of their salary package. This compares to 60% surveyed last year. Bonus percentages range from 10 to 40%, with the average being 20%. Most bonuses are tied to key performance indicators, covering individual, team and company performance and tend to be calculated on base salary.

This year’s survey also revealed that corporate lawyers are continuing to work just as hard as their private practice counterparts. The average number of hours worked each week was 50.3, up from 48.6 last year.

The sustained level of interest in a career in-house will ensure the corporate recruitment market remains competitive during 2004–2005 in spite of the likelihood of increased opportunities becoming available.


Corporate Salaries in Sydney

Year Level Range Average

1 $52,000 – $74,000 $68,000

2 $60,000 – $82,000 $75,000

3 $65,000 – $95,000 $88,000

4 $72,000 – $125,000 $110,000

5 $85,000 – $140,000 $125,000

6+ $110,000 – $185,000 $150,000

Deputy General Counsel $110,000 – $250,000 $200,000

General Counsel $145,000 – $600,000 + $275,000

Figures refer to total package including benefits but excluding bonuses and share options

Corporate Salaries in Melbourne


1 $45,000 – $60,000 $55,000

2 $55,000 – $78,000 $75,000

3 $58,000 – $92,000 $85,000

4 $70,000 – $110,000 $93,000

5 $80,000 – $129,000 $105,000

6+ $85,000 – $180,000 $135,000


General Counsel $110,000 – $500,000+ $235,000


Note: Salary bands in the corporate market tend to be very broad. An individual’s positioning within a band will depend on a number of factors including background and

experience of the individual, size of the organisation and its legal function, industry sector and level of management responsibility within the role.

04



Note: Salary bands in the corporate market tend to be very broad. An individual’s

positioning within a band will depend on a number of factors including background and

experience of the individual, size of the organisation and its legal function, industry sector

and level of management responsibility within the role.

Corporate Salaries in Perth


1 $50,000 – $65,000 $52,000

2 $55,000 – $73,000 $63,000

3 $60,000 – $80,000 $73,000

4 $62,000 – $88,000 $80,000

5 $66,000 – $95,000 $92,000

6+ $75,000 – $135,000 $110,000


General Counsel $110,000 – $290,000 $200,000

Brisbane figures take into consideration the two year articles of clerkship program and

refer to total package including benefits but excluding bonuses and share options

Corporate Salaries in Brisbane


1 $50,000 – $60,000 $55,000

2 $53,000 – $72,000 $65,000

3 $60,000 – $80,000 $73,000

4 $65,000 – $90,000 $80,000

5 $73,000 – $95,000 $90,000

6+ $80,000 – $125,000 $110,000


General Counsel $100,000 – $280,000+ $190,000

04


Benefits Offered in Corporate Practice

Benefit % of surveyed lawyers offered benefit

Share plans/options 40%

Discretionary bonus 74%

Additional leave without pay 39%

Additional superannuation 21%

Mobile phone 66%

Home telephone 2%

Vehicle 20%

Private health insurance 10%

Secondments Local 13%

International 12%

Management training 55%

Flexible work arrangements 59%

Gym memberships 17%

Travel Interstate 63%

International 38%

After hours travel allowance 20%

Subsidised meals 18%

Stress management (yoga, massage, chiropractic) 21%

Income protection insurance 33%

Professional memberships 90%

Further study Full fees 40%

Part fees 34%

Study leave Paid 43%

Unpaid 34%

Laptop 63%

Home computer connection 29%

Parental leave 53%

04


The market for contract lawyers remained buoyant throughout the 2003–2004 financial year with the greatest demand for contractors, as in previous years, coming from the corporate sector. There was, however, a small increase in the number of requests from law firms. Most of the demand was for 5–10 year post admission level lawyers with broad general commercial and corporate experience.

Reasons for engaging contract lawyers included maternity leave cover and special projects, including managing litigation in-house. New financial services reform and leasing legislation also generated contract opportunities both in-house and in private practice.

A number of General Counsel working on their own engaged contract lawyers to assist them with overflow work. We also noticed a continuation of the trend of ‘greenfield’ contract roles, with companies effectively trying out lawyers to ensure they can add value before making a final decision to recruit on a permanent basis. Many companies circumvented head count restrictions by recruiting on a contract basis.

Working in-house continues to be a very popular choice for lawyers and consequently competition for in-house contract roles remains strong. Many lawyers from private practice have been willing to take up a contract role as a means of gaining in-house experience. Because of the size of the candidate pool, very few lawyers have been paid a financial premium to take on a contract role. Most remuneration packages have been calculated simply on the basis of a pro rata annual salary.

A contract role remains an excellent way for lawyers returning to the workforce to re-establish themselves. A number of lawyers have returned this year from working in London, where contract roles for lawyers are commonplace. Other lawyers find themselves available for contract work due to redundancy or because they have been out of the workforce for a period of time. We are also noticing an increasing number of lawyers choosing to have what is termed as a ‘portfolio career’. This means combining legal practice with other means of generating income. Examples of such non-legal activities that we have observed recently include property development, managing an olive grove, working as a professional photographer or pursuing an acting career.

With the quest for work/life balance remaining important to members of the legal profession, we expect to see the number of lawyers seeking flexible careers to rise and organisations continuing to take advantage of this.

Contract

04


Company Secretaries

04

This year, Mahlab Recruitment continued its working relationship with Chartered Secretaries Australia Ltd and undertook its second Australia-wide survey of company secretarial professionals.65% of respondents to Survey 2004 worked for companies which offered performance based bonuses. This is slightly down on last year’s figure of 67%. The vast majority of bonuses were based on a combination of personal key performance indicators and company performance.

Standard benefits received include mobile phones, company cars, share options/plans, professional memberships and laptops. Many individuals also received management training, which reflects the broad commercial and management focus of many company secretarial roles.

The average working week for those in the company secretary area was approximately 51 hours. Whether the company secretariat consists of one person or 10, the average hours worked remains relatively the same. This suggests an increasing division of responsibilities and specialisation within the broader company secretarial function. An example of this development is the separation of responsibilities for the parent company and its subsidiaries. In the past, a sole Company Secretary would have been responsible for all associated businesses. Now, subsidiary responsibilities may be assumed by an Assistant Company Secretary, creating a more streamlined function.

What was evident from the survey results is that, like other professions, there has been a continued focus on flexible working arrangements. 51% of those surveyed advised that they spend 10–20% of their time working from home. There was also a significant increase in the number of respondents who advised they worked part-time.

There appears to be a high level of satisfaction amongst those working in the company secretarial area. 62% of those surveyed advised that they are not looking to leave their current role within the next 12 months and 26% of respondents advised that they ‘love their current role’.

The trend of lawyers moving into the company secretarial field looks like continuing over the next year. As more companies combine the role of General Counsel and Company Secretary, younger lawyers in their first in-house roles are undertaking courses like the Graduate Diploma offered by Chartered Secretaries Australia Ltd and are seeking roles with even the most limited company secretarial component.

There appears to be little uniformity in terms of salary increases within this field as company secretaries continue to be rewarded according to the depth and variety of their role. Salary ranges are wide, reflecting the disparity of responsibilities faced by those working in this area. An individual’s positioning within a range depends on a number of factors including his/her background and experience, the size of the organisation and its company secretariat, whether the organisation is a listed public company, the industry sector and the level of management responsibility within the role.

The survey showed that in general there has been a steady increase in salaries for company secretaries, with an average increase in base package remuneration (comprising salary and superannuation) of 5.34%.


Note: We are aware that there may be some individuals in major companies who are earning outside the bands revealed by the survey, however they would be the exception.

Company Secretary Salaries

State Company type Range Average

NSW Publicly Listed $86,000 – $400,000 $206,500

Other $80,000 – $390,000 $167,000

VIC Publicly Listed $100,000 – $400,000 $203,500

Other $68,000 – $250,000 $123,500

QLD Publicly Listed $76,500 – $230,000 $137,000

Other $70,000 – $180,000 $112,500

WA Publicly Listed $68,500 – $246,000 $157,500

Other $75,000 – $187,000 $136,500

04


The beginning of the 2004 calendar year saw a flurry of international activity with a number of leading UK firms conducting campaigns in Australia. The sluggish international market has certainly picked up and is likely to continue to improve over the next 12 months. Top tier firms in Australia and New Zealand are once again bracing themselves for the potential loss of talent overseas. Banking & finance is still overwhelmingly the practice area most in demand in the international market. Corporate, which has suffered in the past few years due to economic conditions, has also picked up.

The breadth, though not the volume, of opportunities available to Australian and New Zealand lawyers, particularly in London, is reminiscent of the pre 2001 recruitment market. In London, lawyers are also securing roles in litigation, property and insurance law, practice areas that are generally difficult to transfer internationally. IT&T is an area which has been particularly slow in recent years but is also enjoying a resurgence.

While the London market has improved considerably for Australian and New Zealand lawyers, the international firms are still ‘cherry picking’ lawyers from top tier practices rather than hiring en masse. Salary bands too have remained quite similar to the 2002–2003 bands, indicating a level of caution and cost control.

The Asian market is less buoyant. While some countries such as Korea are still in recession, Hong Kong and Japan are bouncing back. To date, opportunities in Japan and Hong Kong have been, in the main, limited to financial services, capital markets and corporate. China too is a growth market.

Language skills in these regions are still highly sought after. The ability to speak and write relevant languages significantly increases the chance of gaining employment in these markets and is particularly important in China.

Singapore and Bangkok have seen a relatively difficult year but still offer opportunities for high quality lawyers. Some international practices have closed offices in Singapore and Bangkok in favour of servicing the region from a larger Hong Kong base.

The increase in activity in Hong Kong has not resulted in salary bands moving upwards and has not yet resulted in a flow of opportunities for Australian or New Zealand lawyers. Firms are continuing to be relatively conservative on headcount and salaries. These firms report that they are working at capacity but are not growing significantly in numbers.

The New York market remains quiet. The one area where firms have been hiring is litigation.

Australians and New Zealanders remain interested in working in the Channel Islands, Dubai and the Caymans, although movement to these destinations is not as strong as to the more conventional markets of London and Asia.

International

04


London Salaries New York Salaries

Year Level Range Year Level Range

Newly Qualified £40,000 – £51,000 Newly Qualified US$115,000 – US$140,000

PQE 1 £43,000 – £56,000 PQE 1 US$125,000 – US$150,000

2 £46,000 – £62,000 2 US$130,000 – US$170,000

3 £50,000 – £68,000 3 US$135,000 – US$185,000

4 £54,000 – £74,000 4 US$150,000 – US$200,000

5 £60,000 – £80,000 5 US$165,000 – US$212,000

Hong Kong Salaries Singapore Salaries

Year Level Range Year Level Range

Newly Qualified HK$56,000 – HK$67,000 Newly Qualified S$85,000 – S$100,000

PQE 1 HK$64,000 – HK$75,000 PQE 1 S$115,000 – S$135,000

2 HK$68,000 – HK$83,000 2 S$120,000 – S$165,000

3 HK$75,000 – HK$90,000 3 S$130,000 – S$190,000

4 HK$75,000 – HK$95,000 4 S$150,000 – S$210,000

5 HK$80,000 – HK$100,000 5 S$160,000 – S$220,000

Figures for Hong Kong are paid monthly

All figures quoted include base salary only and are in local currency

04


Marketing

The demand for marketing professionals remained steady this year with similar levels of recruitment activity in both mid and top tier firms from Senior Business Development Managers to Marketing Co-ordinators. Opportunities continued to be good for candidates with experience in all aspects of marketing, in particular tender/proposal writing and client relationship management.There has also been increased activity in the overseas market, notably the United Kingdom and Asia. With excellent training and experience, local marketing candidates are very well regarded and attractive to overseas clients. Retention of marketers will be on the agenda for Australian law firms as the UK Magic Circle firms compete aggressively for our marketing talent.

Firms are continuing to grow their marketing capabilities and increasingly accept the importance of senior marketing and business development professionals operating as part of the firm’s management team. 66% of respondents to this year’s survey commented that they anticipate growth in the marketing/business development function at their firm, whilst 78% of respondents indicated that they are involved in management meetings with other departments.

There has been a greater acceptance by firms to look outside the traditional professional services pool and appoint candidates from more diverse sectors such as financial services and insurance.

Participants in this year’s survey revealed that the three most common areas to which they dedicate the most time are tenders and capability statements, client relationship management and strategy and planning. Emphasis remains on activities that align the marketing function to business activity and the firm’s bottom line.

71% of respondents to Survey 2004 cited challenge as the major reason for being attracted to their current role. Our survey also showed that marketers believe their career will develop in a more strategic direction or into a broader senior management role. The level of job satisfaction was high with 34% ‘satisfied’ with their current role and 22% ‘very satisfied’. Salary increases for this financial year averaged 6.35%.

Mahlab Professionals

04


Marketing Salaries

Top Tier Firms* Job Level Range Average

Director $120,000 – $300,000 $230,000

Manager $85,000 – $140,000 $120,000

Senior Co-ordinator $62,000 – $81,000 $72,000

Co-ordinator $48,000 – $69,000 $58,000

Mid Tier Firms Job Level Range Average

Director $120,000 – $150,000 $128,000

Manager $75,000 – $140,000 $95,000

Co-ordinator $45,000 – $65,000 $52,000

Small Firms Job Level Range Average

Manager $59,000 – $100,000 $79,000

Co-ordinator $45,000 – $60,000 $55,000



04


Human Resources

The 2004 calendar year commenced slowly for the recruitment of human resources professionals. This cyclical trend is due largely to the heavy workloads of HR teams around this time as they focus on seasonal/articled clerk recruitment and then (a couple of months later) performance and remuneration reviews. Most recently, a number of maternity leave contract opportunities have become available, as have permanent roles resulting from long serving HR professionals leaving their firms to pursue other opportunities, many outside the legal arena.

The 2003–2004 financial year has been characterised by firms employing HR professionals from broader commercial backgrounds as opposed to those only with experience in law, accountancy or management consultancy firms. Respondents to Survey 2004 showed that HR professionals in law firms held a variety of roles prior to their current position including IT Services Manager, Recruitment Consultant, Lawyer, Business Owner, General Manager and Administrative Assistant. What is consistent is their generalist human resources skills and the ability to adapt to working within a partnership structure.

82% of respondents to Survey 2004 cited challenge as the major reason for being attracted to their current role and most expected their career to develop towards a broader, more strategic role in the future.

The main responsibilities of HR professionals were reported (in order of the most time spent) as performance management, policy development, strategy and planning, secondments and remuneration and benefits. These were followed by recruitment, administration and articled clerk co-ordination.

92% of respondents reported that they are involved in management meetings with other departments. Many felt that the aspect of their role most valued by the firm centered on recruitment and performance management. 17% expected a growth in the HR function at their firm.

Career satisfaction in human resources is high, with 27% of those surveyed reporting that they are ‘very satisfied’ with their current role and 46% that they are ‘mostly satisfied’. Salary increases for this financial year averaged 6.68%.

04


Human Resources Salaries


Director $165,000 – $270,000 $220,000

Manager $102,000 – $150,000 $120,000

Consultant $72,000 – $95,000 $78,000

Co-ordinator $48,000 – $65,000 $56,000


Director $126,000 – $170,000 $137,000

Manager $72,000 – $110,000 $85,000

Co-ordinator $43,000 – $60,000 $51,000

Small Firms Job Level Range Average

Manager $70,000 – $90,000 $78,000

Co-ordinator $38,000 – $55,000 $47,000



04


Knowledge Management

The demand for knowledge management professionals in both mid and top tier firms continued in the 2003–2004 financial year as firms expanded their knowledge capabilities and fully embraced knowledge strategies as an integral part of practice. Roles within the broad knowledge management field comprise diverse responsibilities such as library, intranet, document management, precedent drafting, training, design and internal communications. Qualifications and backgrounds are quite varied and interestingly, 64% of respondents to this year’s survey hold legal qualifications.

A significant number of knowledge management roles are undertaken on a part-time basis. Nearly half of those surveyed this year reported that they are working part-time, on an average of three days a week. 68% of respondents cited family commitments for this preferred basis whilst 32% cited other reasons including dedicating time to other projects, running their own business and the pursuit of greater work/life balance.

Salary bands in the knowledge arena are also broad, making it difficult for firms to benchmark their teams. Survey 2004 showed significant disparities in remuneration for professionals with similar job titles, as the responsibilities and structure of the various firms in which they worked created quite different roles.

The main responsibilities for knowledge professionals reported in this year’s survey, in order of time spent, were precedent management, development of the firm’s style guide, drafting and editing, training, intranet/website development and staff management, followed by research and library management.

54% of respondents stated that their firm’s culture was successful in encouraging people to contribute to precedent development. Buy-in from partners, collaboration between different teams and a recognition of the importance of this area to the success of the firm were considered to be the most important factors in making it work. The most significant barrier to success reported was the pressure on fee earners to focus only on billable hours.

Career satisfaction continues to be high amongst knowledge management professionals with 34% surveyed advising they were ‘very satisfied’ with their current role and 31% describing themselves as ‘satisfied’. Salary increases for this financial year were on average 5.47%.

04


Knowledge Management Salaries


National Manager $120,000 – $250,000 $160,000

Manager $68,000 – $140,000 $120,000

Co-ordinator $41,000 – $75,000 $65,000


Manager $67,000 – $130,000 $103,000

Co-ordinator $38,000 – $47,000 $43,000



04


Patent Attorney Salaries

Position Range

Trainee Patent Attorney $53,000 – $78,000

Newly Qualified Patent Attorney $76,000 – $100,000

Mid Level Patent Attorney $77,000 – $115,000

Senior Patent Attorney $100,000 – $180,000

Trade Marks Officer $46,000 – $70,000

Qualified Trade Mark Attorney $70,000 – $123,000

IP Manager - In-house $80,000 – $140,000


The recruitment market for patent and trademark attorneys was steady over the past 12 months. Activity was evident in private practice as attorneys across all levels moved between firms, especially law firms. There is a continuing demand for qualified/trainee patent attorneys who also hold a law degree. Dual qualified candidates are generally paid more than those who do not hold multiple degrees.

Salaries for trademark and patent attorneys remained relatively stable. Star performers were rewarded well to recognise their significant contribution and as a retention strategy. Over the past 12 months the strongest areas of recruitment demand have continued to be for patent attorneys with expertise in biotechnology, health and electrical engineering.

Corporations closely protect their intellectual property in a competitive market place. Multinational companies continue to engage teams of intellectual property specialists working in-house to manage their intellectual property portfolios. The trend continues for these teams to be a mix of patent attorneys, trademark attorneys and lawyers.

04

Patent Attorneys

S ve 00Sur ey 00

S ve 0000Survey 2004

Sydney Level 6, 20 Loftus Street, Sydney 2000 T: (02) 9241 1199 F: (02) 9241 1189 E: [email protected]

www.mahlab.com.au

Melbourne Level 12, 535 Bourke Street, Melbourne 3000 T: (03) 9629 2111 F: (03) 9629 2155 E: [email protected]

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