War for legal talent a big-firm perk escalator
The Financial Times has reported on the escalating benefits now available to lawyers in top London law firms.
Prof Laura Empson, who lectures on the management of professional-service firms at Bayes Business School, has told the newspaper that elite professional-service firms are now operating as “luxury cocoons”.
The academic speaks to reporter Suzi Ring about the “extraordinary office environments” currently being developed to attract and retain elite professionals.
For elite professional firms, their buildings served a powerful symbolic purpose concerning status, signalling to both clients and competitors, she said.
Status
“It is partly about status – the exceptional facilities make the lawyers feel special. It [also] helps them believe in themselves and the fees that they charge,” Prof Epsom told the FT.
“But it is also about security. When you routinely spend nights and weekends in the office, you need to have things around you which make your workplace feel like your home.”
Because nights and weekends are routinely spent in the office, top-class restaurants, career coaches, saunas, and hair salons are now all on offer, as well as state-of-the-art exercise equipment and ‘wellbeing’ spaces.
Neel Sachdev, London co-head of Paul Weiss, tells the FT that competition for top lawyers has intensified in London in recent years, driven by the significant growth of US-founded law firms.
This has led to escalating pay wars at both the junior and senior end of the profession.
Newly qualified lawyers in their mid-twenties can earn as much as £180,000, while top partners can receive packages in the double-digit millions of dollars, the newspaper reports.
Retention and referral bonuses, and three-year guarantees are also offered.
Kirkland & Ellis, the world’s biggest law firm by revenue and a rival to Paul Weiss, recently moved into a London office that offers saunas, a hair salon, and a 10,000-book library.
Last year, 52 law firms signed for new office space in London, the highest number since at least 2019, the newspaper reports.
Over the past seven years, 284 law firms in London have done deals for new premises.
Strategic priority
“The client-facing nature of the business, coupled with the war for talent, has made office experience a strategic priority across the legal sector,” Jack Tomlin, CBRE head of City occupier transactions in London told the FT.
Office moves, many to brand new buildings, have brought redesign opportunities to incorporate ‘softer’ perks, the FT reports.
Such benefits can make a difference in attracting and retaining lawyers who work 80-hour weeks.
Los Angeles-founded Latham & Watkins will move to a new office in autumn next year, after more than doubling its headcount in London,
The building will have bookable private fitness suites on every floor, including Peloton exercise bikes, as well as barista coffee services.
The Addleshaw Goddard City premises includes a chilled internal wall for post-exercise cooldowns, as well as heated lockers for drying out clothing on wet days.
Most US-founded law firms in London now require lawyers to be in at least four days a week, while many established British firms have kept the mandate closer to three days.
US-founded firm McDermott, Will & Schulte will move to Mayfair in 2028 and has used its recent merger to upgrade benefits.
It is introducing therapy for employees and their families, as well as improved parental leave.
UK ‘magic circle’ firm Linklaters will be offering employees beauty treatments in-house, as well as a music room.