2011 Salary Survey Results: Junior Lawyers 1 Year PQE

A 2yr PQE leans over to compare his salary
It’s that time of year again.  Pay rises have been announced, bonuses collected and junior lawyers everywhere are whinging over Friday night beers that their mates down the road are getting paid an extra couple of grand, the annoying twat in the office next door is on $5k more than the rest of his peer band, and London or HK are beginning to seem tempting… We certainly hear some enormous bullshit around the office when it comes to salaries and bonuses (it’s always amusing to hear some belligerent cockeye dispensing fiction from the water-cooler — we resist the urge to take him blindfolded to the FS Underground Bunker to prove him wrong).  Both recruiters and HR benefit to some degree from the bullshit, and we’d like to set the record straight.

The purpose of this series of posts is to put information out there, in the hope that some of the myths will be dispelled and you will (from the sum of responses) have an idea of how your salary compares.  Obviously, the data in the survey is given to us anonymously — quite possibly by persons who have an interest in deflating the competition (or just messing with us) — and we are unable to verify any of it.  Bizarrely, the firms are exceedingly tight-lipped about jumior salaries — quite unlike their UK and US counterparts, many of which openly publish details of starting, NQ and junior base salaries.  To preserve anonymity, we also don’t name the firm in some cases (usually because we’ve been asked not to), but give a general idea of where it sits in the market.

Without further ado, let’s see some numbers.  This week we start with the 1-year qualified lawyers (i.e. those admitted between July 2010 and June 2011).  More after the break.

We had almost 500 responses to the survey this year, which is a big jump from previous years.  To make things comparable, we’ve broken things down by peer band, firm and state.  If anyone has a better idea about how to present the data, we’re all ears!

Also shown are the number of tipsters, so you can see if there has been any corroboration or if it’s just someone posting crap.  As always, use your own judgment before complaining to your supervising partner that peer X is being paid more than you.

[Update: we saw a query about PQE terminology.  This refers to the number of full years of experience post-admission.  So if someone is admitted in September 2010, they're still "1 year PQE" in July 2011.  Conversely, someone admitted in April 2011 is a NQ under this terminology.]

1 Year PQE: national firms

Firm Name Job Title # Tips Gross Salary Bonus? Billable hrs Vibes*
Allens Arthur Robinson (Sydney) Lawyer 2 $86,500 $0 4.25 Good
Allens Arthur Robinson (Melbourne) Lawyer 1 $72,000 $0 4.25 Okay
Blake Dawson (Sydney) Lawyer 2 $92,500 $0 6.5 Good
Blake Dawson (Melbourne, Brisbane) Lawyer 2 $85,000 $0 6.5 Stressed
Blake Dawson (Melbourne) Lawyer 1 $87,000 $0 6.5 Stressed
Blake Dawson (Canberra) Lawyer 1 $70,000 $0 6.5 Happy
Clayton Utz (Sydney) Lawyer 1 $97,000 $0 7 Bad
Clayton Utz (Melbourne) Lawyer 2 $86,000 $0 5.5 Unhappy
Clayton Utz (Perth) Lawyer 2 $90,000 $0 7.5 Okay
Corrs Chambers Westgarth (Sydney) Lawyer 3 $95,500 $15,000 7 Happy
Corrs Chambers Westgarth (Melbourne) Lawyer 1 $78,000 $0 7 Happy
Freehills (Sydney) Lawyer 1 $105,000, $88,000 $0 6.5, 7 Happy, Bored
Freehills (Melbourne) Lawyer 1 $85,000 $0 ? ?
Mallesons Stephen Jaques (Sydney) Lawyer 3 $95,000, $93,000 $0 6 Unhappy
Mallesons Stephen Jaques (Melbourne) Lawyer 2 $82,000, $79,000 $0 6.5, 6 Stressed
Mallesons Stephen Jaques (Perth) Lawyer 1 $85,000 $0 6 Sad
Minter Ellison (Sydney) Lawyer 1 $97,000 $0 6 Restless
Minter Ellison (Adelaide) Lawyer 1 $60,000 $0 6 Unhappy
Minter Ellison (Melbourne) Lawyer 1 $86,000 $0 6.5 Sad

* Totally unscientific summary of the comments and ratings given by respondents about their firms.  In the words of Dennis Denuto, it’s the vibe of the thing.

Feelings at the top-tier were pretty mixed, with most respondents being fairly concerned about the hours, the miserly pay rises and (with concerning regularity) relations with their supervising partners.

It’s revealing to work out what the average peer band salary is at each firm per billable hour worked.  When you do the maths, it seems that the mean Sydney 1 year PQE salary-per-billable-hour is about $15,045.  In Melbourne, it’s $13,490, while in Brisbane it’s $13,076 and Perth $13,083.  Take this for what it’s worth – there isn’t a huge amount of data here, so statistical reliability is pretty limited.

Now for some choice quotes.  In Allens Sydney:

The atmosphere in Corporate sucks.  I have not received any increase, so allowing for inflation I have effectively received a pay cut! So, I will be working somewhere else when I complete this survey next year.

That’s certainly putting it bluntly.  From a grumpy Mallesons first year:

Feedback? Yes, name which junior partner of the firm is the biggest wanker.

We invite speculation.  Mallies juniors were certainly unhappier than most of their top-tier colleagues.  One complained:

- restructured every year or so with a different “strategic plan”
- none of which result in anything
- underpaid
- lawyers are expected to be marketers as well, because “the marketing team really aren’t any good at this.”

As to this year’s pay rises, another commented:

It barley covers the increased cost of public transport to get to work, but 2k is better than a kick in the head.  We work very hard for very little reward.

At Minters, there was a general sense of being over-managed.  This first year commented:

I’m sad because we are now managed by large marketing, business development and IT departments, all of whom seem to have very handsome budgets but no interest in/idea about the profession and what legal staff want/how we work/our responsibilities as lawyers.  Marketing/business development/IT seem to have become “the business”.  They don’t support, they run the place.

Meanwhile, Blake Dawson juniors are feeling under pressure, one noting a “real push for billable hours, utilisation, productivity – not much mentoring.”  Sadly, for many, work-life balance was simply impossible.  One respondent surmised:

Requirements of big firm incompatible with having a marriage and family.

Did we miss out your firm office?  Or are you being paid something else?  Enlighten us (anonymously) in the comments below!

1 Year PQE: mid-tier and boutique

We’ve had a few requests along the lines of the following:

It would be good if you compiled boutique and mid tier data too – even if there was one tick-box for each rather than breaking it down into more detail.  A lot of my friends who are still working at top tier firms would find this interesting – it’s good to know whether the grass is actually greener on the other side.  (Answer is part yes, part no.)

It’s a lot of extra work to do this, partly because of the sheer number of mid-tier and boutique firms out there and the difficulty of aggregating data by hand.  But we’ve done it this time around, and we hope you like.  Some firm names hidden to preserve anonymity.

Firm Name Job Title # Tips Gross Salary Bonus? Billable hrs Vibes
Baker & McKenzie (Sydney) Associate 2 $78,000 $0 6.25 Bored
DLA Piper (Melbourne) Lawyer 2 $81,750 $25,000 6.5 Itchy feet
Henry Davis York Lawyer 1 $93,000 $20,000 7 Average
Herbert Geer Lawyer 1 $85,000 $0 6.25 Good
Hicksons Lawyer 1 $70,000, $78,000 $0 6.5, 6 Stressed
HWL Ebsworth (Sydney, Brisbane) Lawyer 2 $75,000 $0, $25k 6.5 Happy
Hynes Lawyers Lawyer 1 $65,000 $25,000 6.5 Pessimistic
Maddocks (Sydney) Lawyer 1 $83,500 $0 6.5 Unhappy
Norton Rose (Sydney) Lawyer 1 $90,000 $0 7.5 Happy
Norton Rose (Brisbane) Lawyer 1 $78,000 $0 6.5 Okay
Piper Alderman Lawyer 1 $70,000 TBC August 6.5 Okay
Thomsons Lawyers Lawyer 1 $65,000 $0 6.5 Unhappy
Perth construction boutique Lawyer 1 $120,000 $0 5 Ambivalent
Other boutique Lawyer 3 $61k, $65k, $72k $0-$1795 6-6.5 Miserly
In-house Lawyer 5 $60-$78k, $87k $0 4-6.5 Bored
Australian Business Lawyers Lawyer 2 $82,000 $45,000 5.5 Pretentious
Unnamed ? 10+ $50,000-$105,000 ? 4-7.5 Various
Other mid-tier Various 10+ $73k, $68k, $75, $102.5k, $62.5k $0, $2.5k, $15k 6.5, 5.5 Various

Generally speaking, mid-tier, in-house and boutique juniors seem happier.  One in-houser commented simply “in-house = less pressure”, which seems to accord with general sentiment and common wisdom.

One die-hard Neighbours fan and boutique solicitor broke things down nice and simply for us:

Happy:  Being home in time for Neighbours.  The fact that I’m no longer working my previous top tier firm.

Salary: ok.  Pretty happy considering that it comes with a side of “Neighbours”.  Bonus options reasonable.

Sad:  The fact my boss is a tool.

Being home in time for Neighbours every night: priceless.

But it looks like one Hicksons first year is earning $8k more than his friend for billing 0.5 fewer hours.  As to future directions, an ex-Hicksons escapee noted the s/he left “straight to Centrelink”.  Probably an upgrade.

Conclusion

In true Firmspy style, we suspect that this survey will ruffle a few feathers. One has to pity the first year at Freehills who’s being paid a full $17,000 less than his colleagues for an extra billable hour each day, though that’s probably just a grad who (bless them) has failed to fill in the form correctly.  Judging by the rest of the data, it looks like some high-performing first-years at the top-tiers are earning more than 2-3 year PQEs down the road. We’ll be posting details of the other peer bands over the coming weeks.  It takes time to review and collate all the data, so please do be patient! Many tipsters have written in asking us not to post the raw data, fearing that it might compromise their identity.  Fear not: we’ve kept the information above to a minimum and, in small cohorts (particularly at suburban firms) have redacted the firm name.

What do you think of the survey results?  Is your salary missing?  Let us know in the comments below!  We will update the table periodically as we receive more submissions in the comments.

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