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Scotland's legal sector is facing an "intense" battle to hold on to young talent with London firms reportedly offering starting salaries of up to £125,000.

Firms here are struggling to hire new solicitors, according to the Law Society of Scotland, with many moving to the UK capital, where a similar shortage means that they can earn up to three-times more than the salaries being offered in Aberdeen, Edinburgh and Glasgow.

Some are even able to work remotely from Scottish cities on the inflated salaries following a shift in working practices due to the pandemic.

Peter Nicholson, editor of The Journal of the Law Society of Scotland, reports that these are turbulent times in the legal recruitment market.

He said: "The pandemic has left many people rethinking their working lives, with hybrid and flexible working now a key consideration.

"The 'great resignation' has become a label for the times, as people search for what they want from a job. Competition for talent is intense, especially in London where a salary bidding war has reached into six figures even for junior solicitors. One Magic Circle firm is reportedly offering £125,000 to the newly qualified (NQ)."

The Law Society of Scotland's head of education Rob Marrs said that almost everyone is recruiting - perhaps because of a glut of work coming from the backlog, or projects that were backed up during Covid.

For larger firms, competition from London is having an impact. Mr Marrs said: "The issue of losing talent to London is a consistent one.

"In Scotland we've heard of larger firms paying double-digit pay rises to try and retain staff, as the competition for qualified staff is now incredibly fierce and it is easier to keep people than replace them.

“The truth of the matter though is that the NQ market is a nuanced place - the firms that see talented staff leave to London may themselves see NQs applying to them from around Scotland. Anecdotally we've also seen people moving in-house at the end of their traineeship more than we used to."

Legal recruitment companies agree that, from the NQ level up, there are not enough candidates.

Neil Campbell, of QED Legal, described it as "an incredible shortage" and he pointed to fewer people joining the profession during the pandemic.

Veteran recruiter Frasia Wright points to particular competition across key areas including property (all types), construction, corporate and private client.

James Hitti, of G2 Legal, added: "So far, 2022 has demonstrated that retention is the new recruitment. Every business we deal with is looking at ways to retain the staff they have - this is adding to the apparent skills shortage."

Legal recruiters support the view that candidates nowadays are looking for many things apart from money.

Ms Wright listed quality of work, the firm’s culture and values (covering diversity and inclusion), and training and development, adding: "Many junior lawyers do not want a long-hour work culture, long term. A clear and transparent career path and how salary levels will look medium to long term are important. Hybrid is a big one."

Salaries are also reported to be volatile - even in the cities they range for NQs from the mid-£30,000s to the mid-£60,000s, with private client and litigation tending to be lower than corporate and commercial.

Mr Campbell added: "As a general rule, I expect the average for this year to be closer to the £50,000 mark than the usual £42,000 region."

Outside the cities, the low to high £30,000s are said to be more likely.

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