BigLaw Access | August Issue - 2023

'The Spirit of Australia'

I've had a good chunk of time to reflect on the last month between flying and airport layovers. Last night, I returned from a short week-long trip to Australia, via Canada.

While I was out there, I was promptly reminded of how early the work-day can start there. On a 6am run, I was confronted by the amount of people out and about; at cafes, breakfast meetings or already on their way to the office in the middle of Winter (well, Australian Winter). Something I used to do myself.

No doubt, it's part of the reason the US loves working with Aussies -- they work hard and they're very eager to work. Not that Americans have a bad work ethic, but as a whole, Australians like to work hard and play harder. Maybe that's where Qantas got their 'Spirit of Australia' from.

Maybe this eagerness subconsciously engrained in me is the reason July really frustrated me on the work front here in the US -- it was slow. Law, as we know, is generally quite conservative and that means it can move slowly when it comes to hiring, but this was something else.

Slow hiring due to pick up

In June, we saw an uptick in hiring and were hopeful of this signifying a restart of a busier hiring period. Reports also surfaced that global legal services were predicted to recover following the pandemic and reach USD 840 billion by mid 2023 (Statistica, 2023). Partners were also starting to discuss international hiring strategies for Canadian and Australian Finance lawyers -- something which always signifies an improving market.

However, through July we were really pushing uphill to get interviews booked in and placements across the line. It got to a point where candidates were seeking extensions to the expiry dates of their offers while waiting for competing offers to come through as promised. Something that would ordinarily take days, was taking several weeks.

Why? While most Partners and groups I spoke to were looking to move quickly, updated firm hiring processes, indecisiveness by hiring Partners and the increase of vacations taken this year has really slowed things through Summer.

The first week of August has shown positive signs, however candidates will need to remain vigilant and partner with an experienced recruiter with grit if they want things to progress.

The M&A 'slump' creating positive trends

The transactional 'slump' that has plagued the market for the last 12 months has been frustrating for many. However, many have seen it as an opportunistic time for change -- and it's creating some really interesting (and positive) trends.

The prestige factor that used to draw associates to the top firms is not as prevalent as it once was and we've seen a shift towards 'smaller' AmLaw 50 firms where attorneys can lay the foundation of their entrepreneurial spirit.

The best example of this has been in the Funds market, which has seen significant shake up on the Partner front. Naturally, this flows through to Associate moves as Partners look to grow out their teams.

It's really creating more competition in the market by giving strong mid-tiers their time in the sun and attracting talent from some of the more elite firms. In turn, this creates a talent gap and opens the door to Associates that otherwise may not have been considered for roles at those elite firms.

Interestingly, this trend is also taking place on Wall Street, where the likes of Jefferies, Evercore and PJT Partners are being inundated with applications from Goldman Sachs and Morgan Stanley Associates -- applications that Evercore said they would have never received a few years ago. Times are a-changin'.

As we progress through August, I suspect this will continue to trend across the legal space, however between the growing interest in law firm mergers and strategic team moves, attorneys themselves will need to be strategic in how they approach their next move.

No matter what size firm, or in what market, law firm agendas are always the same: remain relevant and move with the times, low attrition rates and secure the best talent available. It's simple, really -- but it does require some patience.

I'm excited for August and what lays ahead for the rest of this year.

Let's do this!

-Stef

Stefano grew up in Australia where he practiced as a top-tier corporate and funds attorney before moving to the US to work in BigLaw. He is now a legal recruiter and Principal with Sonder Consultants working between NYC and LA. Connect with him on?LinkedIn.