If the impressions that I intend to share with you in this post seem recently familiar, perhaps you may find the reason in the special devoted to this topic published in this past weekend’s edition of Expansion newspaper. For this report, the newspaper wanted to have the professional opinion of Signium International Spain and that is why maybe if you bought the paper on Saturday or Sunday you will find some similarities in what I say here. However, I did not want to miss the opportunity to advantage of my thoughts for this special collaboration with Expansion to also share in our blog some of my conclusions on the matter.
Along these lines, the question one asks almost instantly when thinking about employment and the legal sector in Spain is what this year holds for the legal profession in Spain? Overall, one could say that in 2011 the sector will continue adjust its teams to the firm’s real workload needs. This trend will be felt on several fronts: firstly, the adjustment that started a few years ago will continue to affect the hiring of new graduates. And on another, this goal of efficiency will also mean promotions to Senior Associate or Partner will be scarcer, and therefore one’s advancement will become harder. Another of the general trends we will see in the sector is the continuous flow of partners from competing firms. These hires will be better received if they can bring with them their client portfolio. Sector concentration will also be another tendency in this market. My prediction is that during the 2011 firms will continue to merge or acquire other firms, seeking to offer the highest number of discipline areas as a way of dodging obstacles created buy the current economic recession.
Returning to the question of Partner appointments or promotions, I would point out that in my opinion, beyond the fact that opportunities have been reduced, what has really happened is an adjustment to reality. Therefore, it would be more correct to talk about a situation of containment to correct the excesses committed in the boom years. What happened during these years is that the position of Partner was too readily given to professionals whose actual contribution to the management, development attitude was not adequate. As a result, the figure of Partner was devalued, in billing and compensation per partner, as well as causing the numbers of Associates to swell beyond those really needed for business. As we have been tracking since 2005 in the annual sector remuneration study published by Signium International Spain, this decrease in revenue sharing between Partners is not a result of but rather precedes or accompanies the general compensation slowdown experienced all industry segments. This study that I referenced can be found in the studies section of our website.
Finally, I can’t end this post without making reference to the areas in highest demand during 2011. Specifically, the biggest growth will be in financial and banking law - particularly in the regulatory area - and criminal and procedural law in their more advisory capacities. The other areas that will also grow are labor law and some specific areas of tax law. In conclusion, adjustment of teams and Associates, industry concentration, restraint of wages and new opportunities in come practice areas. That, according to our perspective, is what will happen in employment in the legal profession in 2011. What actually occurs will be seen by all over the next nine months.