Given the increasingly competitive nature of the UK’s legal sector, it’s somewhat unsurprising that law firms are constantly looking for ways to gain a competitive advantage over one another and with pressure from the Big Four mounting and the number of boutique offerings growing, practices are increasingly turning to mergers and acquisitions. Just under half (43%) of law firms are looking to merge with other businesses over this year according to accountancy firm Smith & Williamson’s annual survey.

Mergers on the rise

Feedback from over 100 UK-based law firms found that 43% were looking to merge or acquire in the next 12 months, compared to only 28% last year. Given the increased pressure from new boutique practices and the ever looming threat of the Big Four Accountancy firms, it’s hardly surprising that 59% of the firms surveyed indicated that competitive pressures have increased in the last year. According to the research, firms consider a focus on specialist sectors as the greatest opportunity in the next two to three years, followed by UK expansion and lateral hires.

Giles Murphy, head of professional practices at Smith & Williamson highlighted that “Focusing on specialist sectors can help firms to strengthen their niche and so differentiate themselves. Like any brand, being able to explain and demonstrate why your service is different and superior to the competition is fundamental to taking market share.” He noted that the right acquisition combined with an effective strategy can help firms to scale-up and develop market presence in a chosen niche or region.

According to Murphy there is a growing trend of smaller acquisitions rather than mergers which can result in two companies’ taking years to reconcile roles, remuneration structures, disparate HR policies, and working culture. The latter perhaps one of the most important, as any drastic changes to working culture could result in talent moving elsewhere.

Strong leadership crucial

It’s crucial that there are strong leaders who are dedicated to managing the merging cultures, while the most dominant culture is likely to assert itself over the new combined company, its likely there might be friction at a variety of levels. Issues at partner level are likely to set the tone for the entire practice, so it’s vital that the managing partner has a clear idea of how to tackle any discrepancies in culture.

It’s also important to emphasise the firms’ new core values, and ensure that all lawyers are aware of how they add value to the practice. Consultation should play a large role in establishing these key values, if the opinions from partners on both sides are not considered it’s unlikely they’ll be adopted effectively.

Identifying the key influencers throughout the firm is also important, often these may be senior partners who are reluctant to rack up too many non-billable hours, but they will play an important role in the cohesion of the two firms. It’s crucial to educate them on the new culture as their peers will likely look to them to set the example moving forwards.

Mergers give firms the opportunity to expand their niche or to venture further afield, and ultimately improve their turnover. However without strong leadership, they can leave firms focusing inwards, rather than outwards at the new potential that mergers bring, so a strong set of core values and a plan to tackle cultural integration is vital.

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Despite a survey from Legal Cheek finding that 78% of its readers favoured the traditional LLB over the more modern GDL, the debate over the two rages on.

The GDL rather obviously gives students who didn’t study law as an undergraduate the same opportunities as their LLB peers. In recent years it has become far quicker and easier to complete but in reality, there’s a lot to be said for both routes into the profession and students should consider which path is best for them.

Benefits of the LLB

Completing a legal degree can provide a quicker route into the profession with some students going straight from a three year LLB to training contract. The course will also give students the option to study additional modules and also more time to gain valuable legal work experience. And it’s worth noting that those who study a BA in law, like their non-law counterparts, will still have to complete the GDL before progressing to either the LPC (Legal Practice Course) or Bar Professional Training Course (BPTC).

More representative of training contracts

Alternatively, the GDL is a well-established step on the way to LPC or BPTC and provides non-law graduates with the necessary knowledge to gain the same qualifications as their legal counterparts. Many have argued that the short, sharp nature of the GDL is arguably better at preparing students for the intense nature of training contracts. And in some cases, non-law students may even have an advantage over their LLB peers as firms are increasingly those with degrees in fields like modern languages.

Ultimately, it depends on you as an individual and despite the LLB still being viewed as the ‘traditional’ way into the profession, alternative routes such as the GDL and legal apprenticeships are certainly rising in favour.

For more insights from the team take a look at our blog. And if you’re looking for work check out our current jobs

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Lynn Sedgwick, Managing Director of Clayton Legal, was recently featured in Totally Legal discussing the rise of the paralegal role. Here’s what she had to say:

The vast majority of you probably ended up in the legal sector through the traditional route of university and a training contract, possibly with a conversion course sandwiched somewhere in between. For the past few decades, this has been the only option if you wanted to work as a solicitor, lawyer or barrister, but that’s no longer the case thanks to the rise of the paralegal.

An alternative route

Robert Houchill made waves in 2015 by becoming the first person to qualify as a solicitor through ‘alternative means’ after working as a paralegal for four and a half years as part of the Solicitors Regulation Authority’s (SRA) ‘Training for Tomorrow’ programme. This initiative was launched to inject more flexibility into the routes to qualify in the profession.

The move highlights that the role of the paralegal is significantly changing. Where in the past the position was solely focused on admin support for qualified solicitors, now the distinction between the two is considerably smaller and operating as a paralegal represents a viable route into the sector for professionals who were unable to secure a training contract, for whatever reason.

The trend is still very much in its infancy, but times are changing. While less than 10% of training contracts are currently awarded to paralegals, there are some firms acting as outliers, including Trowers & Hamlin which recruited 40% of its trainee workforce from paralegals. In addition, DAC Beachcroft has given 60% of its entry level roles to existing paralegal employees.

The necessary skills

There are no definitive rules for what skills are required by paralegals as the role can vary depending on the work of the firm and what area it operates in. However, generally good organisation and administrative abilities are always highly sought after, as are research skills and the ability to communicate findings with senior professionals and qualified solicitors. Opting for this route also highlights to potential employers that you have the drive and determination to work for what you want and that you’re keen to progress in the sector.

It’s still the norm for professionals to operate as career paralegals, but the ‘alternative means’ option provides a second viable route within the sector. It’s estimated that in the next seven to ten years there will be more paralegals than solicitors and it’s highly likely that a significant chunk of qualified solicitors will be those who started off as paralegals.

Naturally, there are some doubts and some commentators have suggested that the move could potentially undermine the profession or reduce the quality of people being admitted. However, the SRA has made securing the opportunity to qualify as a solicitor a demanding process and all paralegals must prove that the experience they’ve gained equates to the requirements of recognised formal training.

It’s highly encouraging to see another route opened up into an area that has historically had rigid entry requirements. Such a move could also help to increase social mobility within the profession, a target that many firms have been struggling to meet. The success of the programme can only be judged further down the line, but the idea, and the development of the paralegal role, should be greatly welcomed.

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Lynn Sedgwick, Managing Director of Clayton Legal, was recently featured in Totally Legal discussing the evolving nature of the paralegal role. Here’s what she had to say:

Growth of the paralegal role

Given law firms’ ever growing reliance on paralegals it’s somewhat unsurprising that the role is becoming ever more closely aligned to that of a trainee and that a growing number of graduates are opting to gain experience in the area before applying for or undertaking training contracts. 

According to a recent study, ‘From recruitment to robots: Growth strategies for law firms’, published by corporate law firm Fox Williams, ‘non-legal’ roles are becoming increasingly important within law firms. Six in ten respondents, who were all managing partners at UK top 200 firms, identified the increased utilisation of paralegals and other ‘non-qualified’ staff as a strong growth prospect. According to the survey, the increased use of these professionals could ‘also point to more efficient ways of delivering legal services, in line with client needs and the nature of the work and levels of expertise required.’

Though there is a great deal of emphasis on the demanding nature of training contracts, ‘paralegalling’ is by no means a 9 to 5 role. In fact a recent survey, conducted by a major legal publication found that, on average, paralegals work 42 hours a week. However that figure rises for London based firms, and again for the Magic Circle, where paralegals work an average of 43.5 and 46 hours a week respectively. In fact, 73% of respondents said that they worked just as long hours as the qualified lawyers within their firm.

According to the research paralegals are often viewed as trainees in all but name. Half of the paralegals surveyed indicated that their day to day work constitutes that of a trainee, and one in five indicated that they are often given tasks above what a trainee would be assigned. By contrast, only 14% of paralegals surveyed said that their work was below that of a trainee. Moreover 60% of those surveyed indicated that they have been assigned work normally given to newly qualified lawyers on more than one occasion, while a further 15% said they were given this kind of work ‘all the time’. These statistics go a long way in demonstrating the growing importance of the paralegal and prove that experienced paralegals are doing far more than mere administrative tasks.

Salary ranges

Though paralegal pay may not sit in the same ballpark as figures commonly offered to trainees and newly qualified lawyers, it’s certainly a range that most graduates would be content with. Full time paralegals with under a year’s experience are commonly offered between £20,000 and £30,000 in London, while outside of the capital pay for the same role usually sits between £15,000 and £20,000.

There is a widely accepted consensus within the legal profession that paralegals are more qualified now than ever, a recent survey indicated that 86% of paralegals now have a degree, with firms tapping into the growing pools of LPC graduates yet to secure a training contract. Paralegal roles certainly work in the favour of both law firms, and graduates themselves, with law firms benefitting from the knowledge of highly educated graduates, and young professionals able to gain valuable commercial experience.

It’s clear that the paralegal path has become a highly viable, and well traversed, route into the profession with a survey indicating that 43% of paralegals are currently looking for a training contract, a further 4% seeking pupillage, and 22% using the role to gain valuable experience in the period before starting a training contract. Only 4% of those surveyed said they had no ambition of becoming a qualified lawyer, and it seems that the paralegal route may now be one of the best ways to get there. Of all of the respondents with training contracts lined up, a staggering 44% had secured it through their work as a paralegal.

It’s encouraging to see so many ambitious professionals strengthening their chances of securing a training contract through paralegal work, and the number of graduates keen to gain commercial experience before their official training can only be good news for the profession as a whole.

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Lynn Sedgwick, Managing Director of Clayton Legal, was recently featured in The Global Legal Post, talking about the heavier workload predicted by law firms in the run up to Brexit. Lynn outlined the findings of a recent survey from Clayton Legal which revealed that legal firms expect workloads and headcount to increase as a result of Brexit.

Workload set to increase

Almost two thirds (62%) of legal professionals anticipate workload will increase in at least one of their specialisms now that the government has announced a date to trigger Article 50 according to a study conducted by Clayton shortly after the referendum. Just under half (45%) of respondents believe demand will increase in at least two or more specialisms, while 35% indicated that they expect a rise in workload across three or more areas and one in four report an expected increase in demand across four or more specialisms.

Headcount also on the rise

Meanwhile 87% of law firms anticipate overall headcount will either stay the same or increase – no doubt, in part as a result of the anticipated increase in workload. Interestingly, the survey revealed a strong correlation between specialisms closely impacted by EU level legislation and overall hiring sentiment.  Professionals working within EU Law and Financial Services are predicting headcount to rise or stay the same (90% and 83% respectively).

Short term strength

Commenting on the findings Lynn said “Despite some commentators expressing concerns over the potential impact Brexit could have on demand for legal services in the UK, it is clear, in the short term at least, that law firms expect workload to increase.  And while it’s perhaps unsurprising that firms expect to increase their headcount due to a rise in workload, it’s certainly a positive sign of strength within the profession. Though it remains difficult to ascertain the long term implications of such an unprecedented political shift, the outlook for the rest of year and beyond certainly seems positive for legal profession and firms alike.”

For more insight take a look at our blog.

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Tina Adams, Head of Operations in the South West at Clayton Legal, was recently featured in Today’s Conveyancer talking about the top legal roles in the South West. According to recent analysis from the recruitment firm heightened activity in the commercial and residential property, private client and family law arenas is driving demand for lawyers and experienced legal executives in the South West. Here’s what she had to say;

Commercial property lawyers

“Numerous reports have suggested that the South West trails behind only London in terms of confidence around construction and property, so it’s encouraging to see an uptick in demand for experienced commercial property lawyers. More firms are moving to the region and investing heavily in office space which is contributing directly to the demand for talent in this field.”

Residential conveyancers

“With all the activity in the residential housing market it’s hardly surprising that conveyancers are also in real demand as they’re the ones that drive these property deals through. House prices in the South West have also risen above the average rate for the UK so we’re seeing strong demand for residential experts with experience of running caseloads.”

Family lawyers/legal executives

“In slightly less positive news, experienced family lawyers and legal executives have also been highly sought after at the start of 2017, particularly in private family law. Every year we see an increase in activity in this field, so much so that some lawyers refer to the first working Monday in January as “Divorce Monday”.”

Private client lawyers

“A similar trend is being experienced in private client law where professionals with experience of processing wills, probates, divorces, inheritance payments and charges are in significant demand. We’ve also seen firms seeking legal experts who have operated or have a knowledge of other European nations’ legal processes as clients look to find potential solutions outside of this country for when the situation around Brexit has been clarified. Ultimately it’s a good time to be working as a lawyer in the private client arena.”

For more insight take a look at our blog.

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Lynn Sedgwick, Managing Director of Clayton Legal, was recently featured in Totally Legal talking about the skills will future lawyers need to be successful in 2017. Noting that “lawyers can no longer rely on their academic achievements to secure themselves a role at a leading firm” she outlined the various skills lawyers need to succeed in the next year.

Outstanding interpersonal skills

In ever more competitive employment market lawyers need to be able to demonstrate that they have the ability to foster and maintain strong professional relationships with peers, and create a strong sense of rapport with a whole portfolio of clients. Lawyers can no longer rely on senior partners to develop relationships with current, or indeed prospective clients, so professionals need to ensure they are able to interact with legal service consumers in a way that engenders confidence.

The ability to work collaboratively

Workplaces are becoming more collaborative and agile, and even the legal profession – which has historically been somewhat change averse – is adopting increasingly co-operative working practices. As cases become increasingly complex, lawyers will find themselves working in interdisciplinary teams which span across practices, and require the advice of external specialists, so the ability to work effectively with a diverse team is more crucial now than ever.

Management skills

As in house teams continue to bolster their internal legal departments, private practitioners will likely find themselves working with clients who are qualified legal professionals themselves, and subsequently expect their external counsel to not only show effective management skills but also a willingness to negotiate on alternative fee arrangements.

A generalist and a specialist

A challenging dichotomy has emerged in the legal profession. Employers are increasingly looking for lawyers to have both specialist knowledge and a wider generalist skillset founded on a strong sense of commercial acumen. Law firms are now looking for professionals with experience working in incredibly specialist practice areas, however it’s crucial that these lawyers also have a broad sense of commercial awareness and a strong set of interpersonal skills to support their specialist knowledge.

For more insight take a look at our blog.

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Many graduates will have their sights set on a career within a specific legal specialism before they graduate, however for both students who are uncertain, and those who have a fairly clear idea of the route they want to embark on, it is worth considering how well suited you are to various roles. Not only does the nature of the work being undertaken differ vastly from specialism to specialism, but as Legal Cheek recently outlined, the traits of graduates attracted to various areas of law varies too.

Corporate Law – ‘The all-rounder’

Lawyers who specialise in corporate law will find that their work spans across a number of different practices and so they’ll more than likely become familiar faces in the firm, which is perhaps the main reason corporate roles usually attract the sociable type. However, the generalist nature of the field means that you may have to withstand quips from colleagues in highly specialised roles. A key characteristic of the role, as with the majority of legal positions, is stamina.

Real Estate – ‘The communicator’

Although students may be put off by the notoriously hard nature of land law, they should be encouraged to hear that it is incredibly different in practice. The work undertaken by land lawyers is often highly commercial, involving prominent names in the energy field. Lawyers who choose real estate as a specialism will need to be excellent communicators, as explaining the details of land ownership to clients with minimal understanding of the relevant legal intricacies can be particularly challenging.

Litigation – ‘The fighter’

Tenacity is essential for lawyers who want to become successful litigators. As dispute resolution solicitor Henry Sackville Hamilton puts it; “You’ve got to be a particular type of person to want to engage in arguments on other people’s behalf’s day in day out.” Some litigators take a bold, confrontational stance while others opt for a calm and academic approach, however regardless of tactics all dispute solicitors need to be commercially aware. Legal excellence is also key, as litigators live and die by the arguments they establish.

Banking – ‘The adrenaline junkie’

Although most might believe otherwise the principles of banking law are fairly straightforward. Lawyers either act for those lending the money or those borrowing it, and provide them with advice on structuring and strategy. Lawyers wanting to work within the banking specialism should be prepared for negotiations, especially when parties have different bargaining positions. Financial services in general is an incredibly fast paced sector, and banking law is no exception. Having both strong communication skills and a grasp of maths is also essential for banking roles.

Private Client – ‘The people person’

Lawyers wanting to work with private clients will need not only fluency in equity and trusts, but also a preference for working with individuals rather than big name companies. Research ability is vital in this specialism, but perhaps the most important factor is excellent communication skills. Lawyers may find they work for particular clients throughout their professional career, so establishing strong relationships from the offset is key.

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It’s widely accepted that a career in the legal profession comes with its fair share of occupational stress, and according to a recent study by Keystone Law, nearly 70% of lawyers believe they work in the most stressful profession of them all. The research found that 67% of legal professionals felt they were more stressed than those working in other sectors, such as accountancy and banking, with only 4% believing they had an easier role.

As a result of the stress of the role, law firms look for the most resilient and hard-working candidates when recruiting at both ends of the scale. Training contract hopefuls will have to demonstrate their commitment to the career and strong work ethic, while partners will be expected to provide examples of strong leadership skills throughout times of significant pressure. So how can legal professionals manage stress at work and develop their resilience?

Manage your time proactively

Establishing an effective work life balance is easier said than done, particularly in the legal profession. The majority of lawyers work from the early morning through to the late hours of the evening, and often their time is consumed by ‘public’ work, for example client facing meetings or work lunches, leaving them to work late to finish their ‘private’ work such as researching and preparing for meetings. Try to manage your time as proactively as possible, and wherever possible schedule both your public and private work for during working hours, to help readjust your work life balance.

Avoid perfectionism

Lawyers are trained to believe that if they’ll ruin their chances of success if every last piece of work isn’t perfect. Perfectionism and unrealistic goal setting, will only lead to unobtainable expectations and undue stress. The nature of the legal profession means a lot of pressure is put on lawyers, and setting yourself unreachable goals will only lead to you putting even more pressure on yourself. So stop worrying about what you ‘should’ or ‘could’ have done to achieve a perfect outcome and focus on aiming to do the best you can in any given circumstance.

Spend time doing things you enjoy

With a career as time consuming as law it’s easy to neglect your interests outside of work, and often legal professionals are forced to cancel social plans to work on time consuming projects. However it’s crucial that you spend time cultivating your interests outside of work, if you become consumed by your work you’re more likely to feel unfulfilled and motivated when work is tough and demanding.

Ask for support

Unfortunately, given the pressure many legal professionals fell they’re under, some lawyers may be reluctant to seek support if they are struggling with stress. Asking for support does not mean you are any less capable or likely to succeed, it demonstrates that you are a responsible professional who recognises that stress can have an adverse effect on your work. It may simply be that your workload has increased sharply and you need someone to redistribute some of your additional work.

Clayton Legal runs career events all across the country for legal professionals. Take a look at our varied programme and de-stress your career hunt today. And for the latest opportunities check out our job pages

Pay scales are a prevalent topic of conversation in almost all legal circles. However, in recent months a great deal of the discussion around remuneration has been leaning towards rising newly qualified pay, and away from the ever important topic of the gender pay gap. According to a recent study from Deloitte the gender pay gap won’t close until 2069, and as a profession known for its male heavy leadership teams, the legal sector needs to do more to address the gulf.

Gender equality – Are legal firms making progress?

The profession is certainly making progress. Earlier this year eight London law firms were recognised in Business in the Community’s Top 50 Employers for Women league table for championing gender equality. The annual league table recognises businesses that ‘demonstrate gender equality as a key part of their business strategy’ throughout all levels of their organisation – including leadership positions.

Gender equality is a concern for a number of sectors, but the legal profession frequently finds itself under fire for a having a lack of women at partner level. However, Linklaters, Addleshaw Goddard, CMS, Eversheds, Hogan Lovells, Herbert Smith Freehills, Pinsent Masons and Simmons & Simmons proved themselves worthy of a place in the top 50, by demonstrating a ‘commitment to creating workplaces and cultures that are inclusive of women.’

The gender pay gap – a long game?

However, Deloitte’s analysis not only indicated that pay parity won’t be achieved until 2069, 99 years after the equal pay act of 1970, but also that the gulf widens over time in all 10 of the most popular graduate careers surveyed. A recent salary survey from The Law Society supports Deloitte’s findings, indicating that while on average men earned 19.2% more than their female counterparts, the gap is widest for equity partners.

So while many firms are working to make their cultures more inclusive and diverse, it is clear that few are tackling the pay crisis head on. Firms need to ensure that they actively work to address the pay gulf, particularly at partner level, to guarantee that they attract and retain the top talent. Many firms are working to encourage women to stay in the profession by offering flexible working policies that allow them to effectively balance their work and home lives, but as discussions over gender pay find themselves back in spotlight, practices need to ensure they are working to close the gulf or risk losing some of their most talented professionals.

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