Has anyone been watching the Formula One this year? Only four races in and already it promises to be a particularly exciting season, particularly if anyone can make inroads into the dominance of Sebastian Vettel’s Red Bull and give him a real run for his money. What has really stood out is the amount of overtaking which has taken place compared to other years where many races have been little more than 24 cars driving round in formation, usually led by a certain Mr M Schumacher.
This year though has been a whole new story, evidenced yesterday by Kobayashi recovering to tenth from the back of the grid, and Mark Webber storming from last to third in China a few weeks back, a recovery which even Lazarus would have been proud of.
Recovery seems to be the buzz word for many of us for some time now. Ever since the credit crunch began and banks started folding most of us in the business world have been anxiously looking for signs of the market and economy improving and strengthening. There have been some false dawns along the way, including the surprise contraction in the economy in the last quarter of 2010, but generally speaking the market has been improving and firms have gone from consolidation mode to now looking at ways in which they can strengthen and improve their situation.
Further evidence of this has recently been supplied by a survey carried out by the Law Society in Birmingham. In 2010 the level of practice fee income rose marginally by some 0.2%, a considerable contrast to a 6.5% drop the previous year, with levels of profit per partner increasing by nearly 20% on the 2009 figures.
The most ringing endorsement of firms’ confidence in the market though has been the level of recruitment enjoyed in the same period, with more than 1000 new members of staff being hired in this time. At an average of around 20 new recruits every week the evidence of recovery is undeniable, with considerable investment being required by firms to facilitate recruitment at this level.
We are therefore at a very interesting time in the legal recruitment market, as this increased confidence coincides with what is always a busy time of year for recruiters – pay review time. For the last few years it has not been as keenly pursued as usual, as the general consensus amongst solicitors has been to hold onto the job that they are in, with the associated security of longevity in the role and redundancy compensation if the position is terminated.
This year though we expect a significant increase in the levels of lawyers looking to talk, as there is the growing realisation that not only are there other (and better) opportunities out there but also that any risk of a swift redundancy in a new position has considerably diminished with levels of work at higher levels than for years. The corporate market in particular is calling out for talented solicitors and with many having been forced to accept reduced hours and pay cuts just to stay in a role it is likely that there will be an increased level of movement in this area.
All round the UK there is a certain level of ‘draw’ which particular legal centres exert on other locations. Like moons and tides, an increase in activity in Birmingham is often reflected by an upturn in Nottingham, Derby and Leicester; heightened levels of instructions in Reading can see increased levels of work in Oxford and Basingstoke. It is therefore logical to assume that this improved level of performance reported in Birmingham will be reflected in other nearby areas, as slowly but surely the world starts to turn again.
Will the market ever get back to the way it was a few years back? Corporate work booming, firms with commercial property work coming out of their ears? Perhaps, although whilst we are moving towards this a recovery at this level may still be a while off.
And a German running away with the Formula One World Championship? Well, some things never change.
To discuss nationwide opportunities in an improving market speak to one of our specialist consultants at VG Charles & Co on 0121 233 5000 or visit our website www.vgcharles.com.