• Black Sabbath
• Spaghetti Junction
• Jasper Carrott
It’s not that long ago that Birmingham was best known for a skinny comedian, the birth of heavy metal and a motorway junction. Factor in UB40, Austin Rover and the favoured Brummie’s claims of “more miles of canal than Venice” and you had more or less covered all that there was to know about the city.
Times have changed admittedly; for those who visit Birmingham now the concrete is now less obvious than before. All three main train stations have been or will be overhauled, the airport will soon offer additional transatlantic and Far Eastern services and the BullRing has made the city one of the most desirable shopping centres in Western Europe.
Looking at the Birmingham legal market over the past 10-15 years it is clear that most national firms view the city as a key strategic location; arrivals from the East Midlands, the South-West and even the City have all viewed Birmingham as a prime location for developing their offering. Shoosmiths, Browne Jacobson, Hammonds, Clarke Willmott, Cobbetts, Freeth Cartwright and Mills & Reeve are just a few of the names which have expanded into the city in the not-too-distant past, most with great success.
Some of these have moved in by swallowing up existing practices in the city whilst others have made a fresh start and utilised their brand combined with the promise of new start to attract high calibre individuals to the firm. Often joining a new office of a national firm can offer possibilities to lawyers already in the locality such as achieving partnership when they may be in a “dead man’s shoes” situation where they are.
From a purely geographical point of view Birmingham makes perfect sense, offering as it does a gateway to the East Midlands, Staffordshire, Oxfordshire and the territories across to the Welsh border, yet remains only an hour and a quarter from London (45 minutes once the high speed rail link is completed). It also already has a thriving legal community, with major players such as Eversheds, DLA and Pinsent Masons in situ and attracting high calibre international work to the city, as well as established Birmingham practices like Wragges and Martineaus who have now both made the move into London.
As a specialist legal recruiter with a strong focus in the Birmingham market we have assisted a number of these firms with their key hires as they move into the city; utilising the links with our London office this has also meant that those firms we work with in one location are confident that we can replicate this service in another. One aspect which a practice is keen to reproduce is having the same ethic and ethos replicated throughout the firm’s locations, albeit that regional differences exist between all areas and these have to be factored in.
As the market starts to pick up it is anticipated that these moves into Birmingham will again pick up pace, and firms who shelved plans to enter the market will again actively seek premises or merger/takeover opportunities within the city.
Ozzy, Jasper and the canal boat owners will be proud.
Are you anticipating moving into Birmingham over the next two to three years, but need guidance on a strategy to do so? Looking to make the hires to ‘make a splash’ but require a professional recruiter to assist? Call one of our specialist consultants at VG Charles & Co on 0121 233 5000 or visit our website www.vgcharles.com
Monday, 26 July 2010
Tuesday, 20 July 2010
PEP Talk
Reading the legal press at the moment you are inundated with articles about firms releasing a summary of their performance for the last financial year. There are not too many who are reporting increases in turnover, yet a number are stating that their profitability has improved and for most PEP has increased markedly.
It doesn’t take a genius to work out the basics of how a firm can increase profits where turnover is down; overheads have obviously decreased whether this be through economies of scale, savings in office costs, and/or a reduction in headcount.
Similarly the increase in PEP in most cases is likely to reflect a decrease in the number of EPs at the firms, either through retirement, redundancy or de-equitising. Considering that equity at Top 100 practices last year was as low as £35k such a move is unlikely to have met as much resistance as previously!
But how does the increase in PEP reflect on the attractiveness of a firm as an option? As discussed in our last blog “Sale La Vie” (http://vgcharles.blogspot.com/2010/07/sale-la-vie.html) one of the key aspects of the legal recruiter is not just to introduce candidates to clients but also to sell the firm to potential employees as an option which can realistically meet their requirements, expectations and ambitions. Along with turnover and equity spread, PEP has always been a key number for partners viewing the succession to equity as the ‘promised land’ they hope to reach in the short-to-mid term when making a move.
In previous years a move to a firm which offers a healthy PEP level has always held the promise of excellent financial recompense for those achieving equity. Now with firms cutting back on equity partners it is important that candidates looking for a move understand whether the opportunity for equity is both realistic, attainable and worthwhile. Otherwise they can end up in a queue for equity for years, with firms able to take advantage of additional layers in the hierarchy which are not always to the partners’ benefit; recent history has shown practices calling on fixed-share or prior-share partners for recapitalisation of the practice yet these individuals retain less of the ‘clout’ enjoyed by the full EPs.
Firms also need to consider how they are viewed in the market if profits/PEP are up yet the practice is still known to be cutting jobs or trainee intakes. It’s a fine line between being seen to be a caring yet profitable concern and giving off the impression of a practice which only cares for the top of the partnership tree, at the expense of the rest of the employees. Firms which find themselves on the wrong side of this line can expect a backlash of negative publicity, an inability to retain their top staff and also find it difficult to attract high calibre individuals who can enhance and improve their offering.
The job of the legal recruiter is not one of practice management but of career management; it is not our place to criticise or comment on individual firms for the manner in which they have gone about the disclosure of their financial performance or the inference which can be drawn. It goes without saying that certain firms enjoy a better relationship with the press than others and hence any articles which are portraying certain practices as financial ogres should be treated with the same pinch of salt as those which highlight others as a beacon of light in a dark economic jungle.
However our role is to make sure that the firms we work with closely are able to attract the right kind of talent, which requires the firms themselves to be honest with us and transparent with their potential employees as to how and where they are profitable, the potential for achieving equity and the overall performance of the practice as a business concern.
The recent economic downturn has shown that the legal profession is not as bulletproof as perhaps we all believed; it has also shown that the status of equity partner is far from the best position in a practice which is struggling for profitability. We are speaking to more partners than ever who are rejecting the opportunity to become an EP in favour of retaining a healthy salary and the guarantee of dependable income without the liabilities EPs incur.
Whether this will change hugely in the near future is open to debate; as the market improves the prospects for EPs will once again appear bright, but those who have been bitten by poor drawings for the last few years the offer of equity may no longer hold the same appeal as before.
Are you at a firm where the recent financial figures have given you cause for concern? Are you currently deciding whether to take equity at your firm and seeking guidance as to your options? To discuss your options call one of our specialist professional consultants at VG Charles & Co for an impartial conversation about your situation in complete confidence on 0121 233 5000 / 020 7649 9094
It doesn’t take a genius to work out the basics of how a firm can increase profits where turnover is down; overheads have obviously decreased whether this be through economies of scale, savings in office costs, and/or a reduction in headcount.
Similarly the increase in PEP in most cases is likely to reflect a decrease in the number of EPs at the firms, either through retirement, redundancy or de-equitising. Considering that equity at Top 100 practices last year was as low as £35k such a move is unlikely to have met as much resistance as previously!
But how does the increase in PEP reflect on the attractiveness of a firm as an option? As discussed in our last blog “Sale La Vie” (http://vgcharles.blogspot.com/2010/07/sale-la-vie.html) one of the key aspects of the legal recruiter is not just to introduce candidates to clients but also to sell the firm to potential employees as an option which can realistically meet their requirements, expectations and ambitions. Along with turnover and equity spread, PEP has always been a key number for partners viewing the succession to equity as the ‘promised land’ they hope to reach in the short-to-mid term when making a move.
In previous years a move to a firm which offers a healthy PEP level has always held the promise of excellent financial recompense for those achieving equity. Now with firms cutting back on equity partners it is important that candidates looking for a move understand whether the opportunity for equity is both realistic, attainable and worthwhile. Otherwise they can end up in a queue for equity for years, with firms able to take advantage of additional layers in the hierarchy which are not always to the partners’ benefit; recent history has shown practices calling on fixed-share or prior-share partners for recapitalisation of the practice yet these individuals retain less of the ‘clout’ enjoyed by the full EPs.
Firms also need to consider how they are viewed in the market if profits/PEP are up yet the practice is still known to be cutting jobs or trainee intakes. It’s a fine line between being seen to be a caring yet profitable concern and giving off the impression of a practice which only cares for the top of the partnership tree, at the expense of the rest of the employees. Firms which find themselves on the wrong side of this line can expect a backlash of negative publicity, an inability to retain their top staff and also find it difficult to attract high calibre individuals who can enhance and improve their offering.
The job of the legal recruiter is not one of practice management but of career management; it is not our place to criticise or comment on individual firms for the manner in which they have gone about the disclosure of their financial performance or the inference which can be drawn. It goes without saying that certain firms enjoy a better relationship with the press than others and hence any articles which are portraying certain practices as financial ogres should be treated with the same pinch of salt as those which highlight others as a beacon of light in a dark economic jungle.
However our role is to make sure that the firms we work with closely are able to attract the right kind of talent, which requires the firms themselves to be honest with us and transparent with their potential employees as to how and where they are profitable, the potential for achieving equity and the overall performance of the practice as a business concern.
The recent economic downturn has shown that the legal profession is not as bulletproof as perhaps we all believed; it has also shown that the status of equity partner is far from the best position in a practice which is struggling for profitability. We are speaking to more partners than ever who are rejecting the opportunity to become an EP in favour of retaining a healthy salary and the guarantee of dependable income without the liabilities EPs incur.
Whether this will change hugely in the near future is open to debate; as the market improves the prospects for EPs will once again appear bright, but those who have been bitten by poor drawings for the last few years the offer of equity may no longer hold the same appeal as before.
Are you at a firm where the recent financial figures have given you cause for concern? Are you currently deciding whether to take equity at your firm and seeking guidance as to your options? To discuss your options call one of our specialist professional consultants at VG Charles & Co for an impartial conversation about your situation in complete confidence on 0121 233 5000 / 020 7649 9094
Tuesday, 13 July 2010
Sale La Vie
There is a school of thought which says that recruitment is the hardest sales job around due to the two-way relationship involved in all deals. Whether this is genuinely the case I’m not sure (for example I’d rather work in our field than Kabul’s Head of Tourism) but there is a certain logic to the argument.
There are very few other jobs which involve both the client and the product having ‘a mind of their own’; if you go to buy a new television it’s highly unlikely that the television is going to decide that it would rather stay where it is as it’s not sure about your long-term commitment to the area, or has concerns about cut-backs you’ve recently made which resulted in the kettle and toaster being let go.
You can also avoid the painful occasion where the television decides that you’re the new owner it’s been looking for, advises the staff in the shop that it’s moving on and then suddenly gets counter-offered to stay in a deal including a higher display shelf, prime corner location and spot near the PlayStation 3s.
The art of senior level legal recruitment comes down to two distinct and equally key matters; can we demonstrate to our client the benefits of engaging a certain individual, and secondly have we made sure that the firm which our candidate is speaking to is the right one and one which meets their personal requirements?
The conception of recruiters as ‘job brokers’ is a nonsense when recruiting for qualified legal professionals, where a war for talent has existed and still exists at present:- quite simply there are rarely enough high-quality candidates to fill the vacancies which arise, albeit that this trend has reversed somewhat in the last few years. This becomes even less relevant when firms are making lateral hires, as either the recruitment is opportunity-led and/or the candidate has a portable following and practices are eager to secure the individual or team and the work which will come with them.
Instead the recruiter’s role is to effectively represent their client in the market and encourage an in-demand candidate to meet with the practice. The firms who are most successful in recruiting the best talent have either a strong brand & reputation, an excellent recruiter who can extol their virtues in the market, or ideally both of these attributes in their armoury.
When the individual is sat round the table, staring the managing partner in the eyes this is not the point where the ‘selling’ of the firm begins; in fact this may be eight or ten stages down the process. This work has already been carried out by the recruiter over the course of several conversations which not only establish the needs of the candidate but then move on to discuss how Firm X or Firm Y matches these requirements. Long before the candidate meets anyone from the practice he or she will already have a vivid idea of why this opportunity may be right for them based on the work the recruiter has carried out.
To do this effectively it logically follows that firms in turn need to ‘sell’ themselves to a recruiter. At VG Charles & Co our approach has always been that unless you know everything there is to know about a client, including profit margins, equity spread and PEP right down to whether the office is dress-down for Comic Relief, then you are not truly able to paint an accurate portrait of the firm and why they would be well-suited to your candidate’s ambitions.
The firms that we recruit for most successfully are those who appreciate the added value which the recruiter brings to the table, and have invested the time in making sure we are can give potential employees a true insight into life at the practice. Let me make it clear that it’s not always a pretty picture that they paint; some clients intimate that they expect long and unsociable time commitments, some that their partners must always be on call even at weekends and some who confess that they “sweat the assets”. Whilst there is usually an upside to this such as better remuneration or high quality work, these are aspects which a recruiter should be making sure that candidates understand, meaning that again by the time the firm meets the candidate at interview both parties know what the other is expecting.
The candidate has an idea what the practice can offer them and how this matches their own ambitions.
The firm knows what they’re looking for and has a rough outline of what the candidate can bring to the table.
And then the selling can begin........
To discuss how VG Charles & Co can represent your firm in the market call one of our specialist legal recruiters for guidance on 0121 233 5000/020 7649 9094 or mail enquiries@vgcharles.com
There are very few other jobs which involve both the client and the product having ‘a mind of their own’; if you go to buy a new television it’s highly unlikely that the television is going to decide that it would rather stay where it is as it’s not sure about your long-term commitment to the area, or has concerns about cut-backs you’ve recently made which resulted in the kettle and toaster being let go.
You can also avoid the painful occasion where the television decides that you’re the new owner it’s been looking for, advises the staff in the shop that it’s moving on and then suddenly gets counter-offered to stay in a deal including a higher display shelf, prime corner location and spot near the PlayStation 3s.
The art of senior level legal recruitment comes down to two distinct and equally key matters; can we demonstrate to our client the benefits of engaging a certain individual, and secondly have we made sure that the firm which our candidate is speaking to is the right one and one which meets their personal requirements?
The conception of recruiters as ‘job brokers’ is a nonsense when recruiting for qualified legal professionals, where a war for talent has existed and still exists at present:- quite simply there are rarely enough high-quality candidates to fill the vacancies which arise, albeit that this trend has reversed somewhat in the last few years. This becomes even less relevant when firms are making lateral hires, as either the recruitment is opportunity-led and/or the candidate has a portable following and practices are eager to secure the individual or team and the work which will come with them.
Instead the recruiter’s role is to effectively represent their client in the market and encourage an in-demand candidate to meet with the practice. The firms who are most successful in recruiting the best talent have either a strong brand & reputation, an excellent recruiter who can extol their virtues in the market, or ideally both of these attributes in their armoury.
When the individual is sat round the table, staring the managing partner in the eyes this is not the point where the ‘selling’ of the firm begins; in fact this may be eight or ten stages down the process. This work has already been carried out by the recruiter over the course of several conversations which not only establish the needs of the candidate but then move on to discuss how Firm X or Firm Y matches these requirements. Long before the candidate meets anyone from the practice he or she will already have a vivid idea of why this opportunity may be right for them based on the work the recruiter has carried out.
To do this effectively it logically follows that firms in turn need to ‘sell’ themselves to a recruiter. At VG Charles & Co our approach has always been that unless you know everything there is to know about a client, including profit margins, equity spread and PEP right down to whether the office is dress-down for Comic Relief, then you are not truly able to paint an accurate portrait of the firm and why they would be well-suited to your candidate’s ambitions.
The firms that we recruit for most successfully are those who appreciate the added value which the recruiter brings to the table, and have invested the time in making sure we are can give potential employees a true insight into life at the practice. Let me make it clear that it’s not always a pretty picture that they paint; some clients intimate that they expect long and unsociable time commitments, some that their partners must always be on call even at weekends and some who confess that they “sweat the assets”. Whilst there is usually an upside to this such as better remuneration or high quality work, these are aspects which a recruiter should be making sure that candidates understand, meaning that again by the time the firm meets the candidate at interview both parties know what the other is expecting.
The candidate has an idea what the practice can offer them and how this matches their own ambitions.
The firm knows what they’re looking for and has a rough outline of what the candidate can bring to the table.
And then the selling can begin........
To discuss how VG Charles & Co can represent your firm in the market call one of our specialist legal recruiters for guidance on 0121 233 5000/020 7649 9094 or mail enquiries@vgcharles.com
Monday, 5 July 2010
It's The Most Wonderful Time Of The Year.......
The early summer brings a number of different challenges for recruiters in the legal market; there is traditionally a lull in candidates approaching us proactively looking for a new role as thoughts instead turn to holidays and “getting away from it all” in July/August.
However it also tends to coincide with firms cementing their plans for the next 6-12 months, identifying key areas which they are looking to strengthen at either the lateral hire/partner level or by recruiting other lawyers to complement the existing team. With many financial years ending in the spring, practices have spent the last couple of months collating financial information, identifying areas of growth and discussing investment moving forward. With almost every firm reporting increased PEP in their 2010 figures there is now money to spend on bringing in lawyers who can guarantee either a following or who can bring a skill set which will ultimately maximise billing potential of existing clients.
Over the last fortnight we have met up with a number of our best clients to discuss their strategies for 2010/11, and to provide market intelligence as to who it would be worth them speaking to about such requirements. As highlighted in our last blog (Real Estate, Real Opportunities - http://vgcharles.blogspot.com/2010/06/real-estate-real-opportunities.html) these areas targeted for growth include fields such as property & corporate, highlighting that even though these were the areas worst-hit during the recession, firms remain aware of the importance of retaining a strong offering in these fields. After all, like any good business, legal practices understand that they must continue to offer the high levels of service necessary to retain clients during lean times, not only so that they can generate new fees as the market continues to recover but there is also the short-term effect that strong client relationships generate work for other areas including litigation and employment.
Some clients have also indicated that they are looking for a differentiating factor; developing the niche that makes their offering stand out from the competitors. There are a small number of practices which are able to rely on brand alone, but for most this is not a realistic option and this search for a different offering is another key aspect of their plans for the next year. Sports law for example has been an area which firms are looking at to supplement their private client and family departments, identifying potentially lucrative rewards from high net worth clients of a relatively young age; corporate fraud has also come to the fore and practices who do not currently offer this have looked to develop or recruit into this specialist litigation field.
The result? At the end of the day money talks and firms are looking to get as much of this as possible, just like every other business. How they do this though has changed and firms are having to walk a considered line between only recruiting into profitable areas and investing in some low-to-mid risk options which will leave them in a stronger position in the future, albeit with a lower financial return in the short-term.
Upon formulation of these plans it is now the job of the legal recruiter to source the candidates necessary to fulfil these aims, which is what we are presently undertaking for those clients we have recently met. If only all those candidates weren’t on holiday...........!
Are you formulating your plans for the next financial year, but have yet to speak to the right people about what you are doing?
Are you looking to move from your present position but are unsure as to which firms may be most interested in what you can offer?
At VG Charles & Co we know the market and are able to discuss these matters with you from both a client’s or candidate’s viewpoint. Call 0121 233 5000 to speak to one of our specialists about your plans for the next year for professional and impartial advice.
However it also tends to coincide with firms cementing their plans for the next 6-12 months, identifying key areas which they are looking to strengthen at either the lateral hire/partner level or by recruiting other lawyers to complement the existing team. With many financial years ending in the spring, practices have spent the last couple of months collating financial information, identifying areas of growth and discussing investment moving forward. With almost every firm reporting increased PEP in their 2010 figures there is now money to spend on bringing in lawyers who can guarantee either a following or who can bring a skill set which will ultimately maximise billing potential of existing clients.
Over the last fortnight we have met up with a number of our best clients to discuss their strategies for 2010/11, and to provide market intelligence as to who it would be worth them speaking to about such requirements. As highlighted in our last blog (Real Estate, Real Opportunities - http://vgcharles.blogspot.com/2010/06/real-estate-real-opportunities.html) these areas targeted for growth include fields such as property & corporate, highlighting that even though these were the areas worst-hit during the recession, firms remain aware of the importance of retaining a strong offering in these fields. After all, like any good business, legal practices understand that they must continue to offer the high levels of service necessary to retain clients during lean times, not only so that they can generate new fees as the market continues to recover but there is also the short-term effect that strong client relationships generate work for other areas including litigation and employment.
Some clients have also indicated that they are looking for a differentiating factor; developing the niche that makes their offering stand out from the competitors. There are a small number of practices which are able to rely on brand alone, but for most this is not a realistic option and this search for a different offering is another key aspect of their plans for the next year. Sports law for example has been an area which firms are looking at to supplement their private client and family departments, identifying potentially lucrative rewards from high net worth clients of a relatively young age; corporate fraud has also come to the fore and practices who do not currently offer this have looked to develop or recruit into this specialist litigation field.
The result? At the end of the day money talks and firms are looking to get as much of this as possible, just like every other business. How they do this though has changed and firms are having to walk a considered line between only recruiting into profitable areas and investing in some low-to-mid risk options which will leave them in a stronger position in the future, albeit with a lower financial return in the short-term.
Upon formulation of these plans it is now the job of the legal recruiter to source the candidates necessary to fulfil these aims, which is what we are presently undertaking for those clients we have recently met. If only all those candidates weren’t on holiday...........!
Are you formulating your plans for the next financial year, but have yet to speak to the right people about what you are doing?
Are you looking to move from your present position but are unsure as to which firms may be most interested in what you can offer?
At VG Charles & Co we know the market and are able to discuss these matters with you from both a client’s or candidate’s viewpoint. Call 0121 233 5000 to speak to one of our specialists about your plans for the next year for professional and impartial advice.
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