Salary & Employment Forecast - Michael Page Hong Kong

Legal
Employment conditions
Recruitment in the legal industry was very
active in the first half of 2011, with steady
hiring activity occurring across all sectors
including private practice, in-house banking
and in-house corporate. Corporate Finance
Lawyers remained the most sought-after
professionals for both private practice and
in-house roles. Steady demand was also
seen for Banking Lawyers across financial
institutions, particularly those with private
banking and wealth management experience,
and for in-house corporate roles. There was
a high requirement for Corporate Commercial
Lawyers from mid level (5 PQE) and above.
Real estate and intellectual property sectors
also experienced an increase in demand for
lawyers and specialists.
Recruitment activity for legal roles slowed
by the end of third quarter, particularly within
the financial services sector. This was due
in part to an overall decrease in upcoming
transactions and workload, the growing
cautiousness of employers to hire as a result of
negative market sentiment overseas, and the
consequent reluctance of candidates to move
roles. Despite the slowdown in this sector a
number of employers continued to actively hire
legal staff in late 2011 and into 2012, a strong
indicator of business optimism. Looking ahead,
recruitment activity will continue to be buoyed
by the expansion of existing firms, as well as
the growing number of new market entrants
looking to build a presence in Hong Kong.
Skills in demand
Across the in-house corporate market,
Commercial Lawyers are most in demand.
These lawyers are required to have experience
in either transactional and cross-border
matters such as mergers and acquisitions
(M&A), joint ventures, foreign direct investment
and listed compliance, or general in-house
commercial work including drafting and
reviewing agreements. There has also been an
increased requirement for lawyers with trade
and operation compliance skills, particularly
covering anti-bribery, anti-corruption and the
Foreign Corrupt Practices Act. Competition
law and corporate governance experience is
also in high demand.
Within private practice and the financial
services sector, strong demand is being
seen for banking finance lawyers at all levels.
Those with experience in structured finance
and products, loans, asset financing, as well
as private banking and wealth management
are most sought-after. For private practice,
an improvement in the corporate market is
creating increased demand for corporate
lawyers.
Regulatory lawyers, both contentious and
non-contentious, are also increasingly in
demand across in-house financial, corporate
and law firms. Demand for these skills is being
driven by the increasing focus on regulatory
and compliance law amid the current
economic climate. While the skill set may
vary between financial institutions, in-house
corporate and law firms, this area is expected
to become even more important during 2012.
Across Southern China, there is strong
demand for lawyers with M&A and foreign
direct investment experience. There is
also a rising need for intellectual property
rights professionals across the in-house
sector. Within this area, there is increased
potential in the financial services market.
The increase of foreign investment in China
and domestic companies seeking a listing
or expansion by M&A or joint venture is also
expected to create demand for corporate
lawyers.
Salary expectations
In 2012 the average salary increase is
expected to be around 10% to 15%
dependant on the candidate, relevancy of
experience for the role, and the employer. For
positions in Southern China increases may be
less substantial at around 5% to 10%.
International law firms, particularly those
setting up new teams or expanding their
practices, have typically paid above market
rates in order to attract talent. This is
especially the case for practices such as
corporate finance, banking finance, regulatory
litigation and for lawyers in financial institutions
with niche experience such as banking or
structured products and funds. Some red
chip companies and banks have the capacity
to pay competitive rates that are above
market rate.
Across the Southern China market, M&A
lawyers are sought-after and generally paid
above market rate salaries. In addition, sectors
such as electronics, energy and resources and
high-tech equipment are in need of additional
legal talent and in these industries have the
ability to pay above market rate salaries.
Market outlook
The employment market will be comparatively
active in 2012 following Chinese New Year.
For the first half of the year, demand for skilled
banking and finance lawyers is expected to
continue, as will the requirement for regulatory
litigators and lawyers. As the market improves
throughout the year, a gradual increase in
demand for corporate lawyers is expected,
along with increased hiring of paralegals
and documentation specialists. A consistent
demand for paralegals, contracts managers
and intellectual property specialists is
anticipated for the in-house corporate sector.
For senior lawyers such as Head of Legal/
General Counsel, positions are more likely to
become available when there is a resignation
or retirement. As corporations continue to
establish offices in Hong Kong and new
companies enter the market, new openings
may arise for senior lawyers to set up a
legal function.
Within Southern China, the first half of the
year is likely to present limited employment
opportunities, however demand for lawyers
with both excellent English and Chinese
language skills will remain high.
Employers will continue to focus on retaining
talent through key strategies of salary
increases and career progression. Job security
has also become an increasingly important
factor, with more candidates seeking stability
from potential employers and roles. For mid
to senior lawyers, the opportunity for their
existing role to cover a broader region (Asia
Pacific or Greater China) may be an incentive
to remain with the company, while flexible
work arrangements, share options/equity
interest, and the chance to take more of a
business focus are other retention strategies.
For junior lawyers, a well rounded variety of
projects will keep them learning and engaged.
Salary & Employment Forecast 2012 18