Tim Kidd, Chief Executive, Institute of Legal Finance & Management (ILFM)
By Tim Kidd, Chief Executive, at Legal Futures Associate Institute of Legal Finance & Management (ILFM)
The Institute of Legal Finance & Management (ILFM), in association with Balance Recruitment is running its annual Legal Finance & Practice Management Salary Survey.
Once again, the ILFM and Balance Recruitment are working together to gather details of legal finance and management professionals’ salaries, benefits and bonuses, together with gaining a better understanding of what candidates look for in a job role. We are always thankful to everyone who takes part (over 2,000 people in relevant roles are sent the survey) and our appreciation is given via a prize draw with the winner receiving a £50 Amazon voucher, plus a £50 donation to a charity of that person’s choosing.
The survey‘s focus is to look at salaries, increases and percentages, together with any additional benefits from the employer. It is evident that the legal finance and practice management recruitment market has flipped since 2021/2022 with it now being an employer’s market as opposed to a candidate’s market.
To give an idea of last year’s average salaries practice managers were looking at £49,000, finance directors were on an average salary of £115,000, legal cashiers were on average £25,500, senior legal cashiers were paid on average £32,000, and head cashiers are looking at up to £45,000. Depending on the location of a working capital / revenue manager their salaries peeked at £80,500.
Richard Hooper, from Balance Recruitment, ran an ILFM Lunch & Learn Webinar on 17 January and he explained that candidates’ current needs were based on these requirements:
- Flexible hybrid working model
- Flexibility with hours to meet childcare needs
- Salary progression
- Fresh challenge/change of scenery
- Feeling valued (e.g. good benefits, regular appraisals, career progression)
The results from 2023’s survey show the following percentage changes since 2022.
Salary increases by firm size:
(last year in brackets)
- Large firm = 79% (82%)
- Medium firm = 87% (80%)
- Small firm = 76% (68%)
Financial bonuses by firm size:
- Large firm = 66% (76%)
- Medium firm = 68% (65%)
- Small firm = 59% (50%)
Percentage of respondents who remained with the same employer within last 12 months:
- Large firm = 77% (88%)
- Medium firm = 86% (94%)
- Small firm = 89% (89%)
Percentage of respondents who hope to remain with the same employer over the next 12 months:
- Large firm = 52% (50%)
- Medium firm = 58% (60%)
- Small firm = 71% (65%)
The questions in the survey include size of the law firm, location of firm, designation, length of time in role at firm, any bonuses given, entitlement to overtime, how did they get their current job in the first place, and if they intend to stay at the firm for the next 12 months.
There is a pertinent question in the survey which is an excellent guide for employers going forward in that if someone were to start a job search now, which of the following factors would be their most important in considering a new role (the salary survey allows a choice of two):
- Salary and benefits package
- Career growth potential
- Flexible working arrangements
- People and culture
- Employer size & status
CLICK HERE FOR LEGAL FINANCE SALARY SURVEY RESULTS 2023 IN FULL
The results from the salary survey will be out in early summer 2024, when they will be published on the ILFM’s website, Balance Recruitment’s website and in the ILFM Legal Abacus Magazine June/July edition.
