[Re:War for talent swells new starter City pay packets, yesterday]
Competition for talent is at fever pitch, and strong competition among City law firms has led to pay packages for the newest lawyers reaching dizzying heights at some of the US giants.
However, with an economic slowdown potentially on the cards and existing employees disgruntled at how their pay compares to that of newer arrivals, simply throwing more money at the problem is not sustainable.
Moreover, while salary hikes may get talent through the door, they won’t solve the bigger problem of retention.
Of course, pay is important, but the associates I speak to regularly tell me they need more than that. They seek out employers who offer transparency over career progression, as opposed to title inflation or false promises. They want to work at firms that can demonstrate a clear sense of purpose and cohesion, as well as mentorship, not just a series of perks.
The pandemic has led to a ‘Great Reassessment’ prompting younger candidates to think deeply about the kind of company they want to work for, contemplating questions such as: will I feel ‘seen’ and valued? What kind of opportunities will be available to me? How much autonomy will I have?
Bulging pay packets will always make media headlines but unless firms tackle these more fundamental issues, they may soon find that their young – and expensive – recruits look to greener pastures further afield.