The State of the California Legal Job Market: December 2008
A Davidson Staffing Report
Hiring is typically slow during the holiday season, as law firm partners and administrators finalize budgets and take holiday vacations. It's not at all unusual for most hiring decisions to be put on hold during the holidays, but "Holiday Season 2008" is markedly slower than most due to the current economic crisis.
Yet, if you are a highly qualified legal professional with specialized skills or a strong background in a hot practice area, you could actually be in more demand than ever. That's because it's extremely difficult for legal recruiters and law firms to entice passive, employed candidates to leave the perceived safety of their current job to take a chance on a new job in this economy.
Davidson Staffing has been in the California legal staffing business since 1987, so we've been through several cycles of economic ups and downs. We thought legal professionals would be interested in learning about the "State of the California Legal Job Market" from our vantage point, so we surveyed a choice group of our recruiters to get their advice and perspectives. You may find it comforting to know that the outlook is not entirely gloomy!
Firms are generally not adding to their headcount, but still plan on re-filling key positions as vacancies occur.
Our recruiters are finding that most companies are in wait-and-see mode during the holidays and are holding to see final year-end numbers. According to Daniele Souza, executive director of Davidson Legal Staffing in Orange County, "Many firms see recruiting as a back burner issue and they are focused only on getting business. Also, many firms are holding off to see what happens with our economy, have we hit bottom?"
"The firms I am talking to are allowed to refill a position if someone leaves," reports Shannon Adams, executive director of Davidson Technical Staffing, which specializes in Legal I.T. recruiting, "They feel that they will get new headcount approved if the firm keeps revenue up and if the position is well justified; it is still too soon to know for sure though."
Shay Welch, senior technical recruiter with Davidson Technical Staffing, says "Firms too heavily dependent upon real estate and financial institutions are particularly vulnerable at this time. However, most law firms do try to have a balance of practice areas to avoid being too exposed to one industry's volatility. I am seeing that even firms that are laying off in one area, are hiring in others. Overall, the health of most law firms is still secure. Most of our clients have the ability to replace positions but are not doing a lot of additional head count at this time."
The economy may be bad, but there are still good job opportunities to be had.
It's important to note that even firms that have instituted a "hiring freeze" are still hiring when necessary. Often, a hiring freeze means that while the firm is not growing in headcount, it may still hire as vacancies in vital positions occur. When a firm loses one of its key people, whether it's due to poor performance, retirement, disability, or someone moving on (yes, it still happens, even in a recession), it must quickly re-fill the position to remain productive.
If you have specialized skills in a hot practice area, this could be a great time to explore today's opportunities. According to Welch, "Now is an ideal time to look (for legal I.T. job seekers) because many candidates are waiting around for year-end bonuses to make a move, and firms that are hurting for talent don't want to wait to hire. This also means that those who are looking at this time have less competition from others in the market."
Consider this: the firms that are hiring, particularly through an agency where a placement fee is involved, are showing a clear sign of stability. Welch points out, "A lot of people are afraid that if they are the last hired they will be the first laid off, but most firms won't even bother with hiring if they see financial problems on the horizon."
Highly qualified candidates with specialized skills and/or experience in hot practice areas are the most sought-after.
Legal professionals with specialized experience - particularly those with experience in the Labor/Employment, Intellectual Property, and Bankruptcy practice areas - are in the highest demand. Litigation legal secretaries with several years of experience are also faring well.
Souza observes, "We are finding a market only for highly-qualified (legal support) candidates with the exact experience the firm may need, where two years ago attorneys were much more flexible."
I.T./technical candidates with law firm or legal experience are part of the highly-specialized "Legal I.T." niche. The hot positions within this niche are litigation/practice support, web applications developers, network engineers, and system administrators. Welch reports, "Litigation Support continues to be a growing area for most law firms. (Legal I.T.) candidates with knowledge in litigation are also in demand."
Because there is a limited pool of candidates with experience in the aforementioned areas, firms are finding it extremely difficult to fill these positions. Now more than ever, candidates are cautious about being recruited into a new position, and are either saying "No, thanks" or are asking for unrealistic increases in compensation in order to make a move. If you have the experience and are realistic in your expectations, this could be a good market for you.
If you've been laid off, be flexible and stick with what you're good at now.
The obvious advice to layoff casualties is to send your resume out diligently, follow up and go on every interview possible. Flexibility is also critical: our recruiters are quick to point out now is not the time to be "super picky" if you're unemployed. You may also want to consider temporary/contract or temp-to-hire work to help you out financially in the short-term - it just might turn into a permanent job.
"Be flexible on salary requirements and job duties," says Adams, "many firms hiring want to hire someone at a reasonable price who has done the job before. Now is not a good time to be out of a job and looking for the ‘next step up' job."
"Focus on what you are good at now, not want you want to do," emphasizes Welch. "Too many candidates see a layoff as a time to ‘explore' a new direction with their career. It's a bit of a catch-22 really. Because they finally have the time to explore some new direction, but the reality is in slow economic times employers don't hire candidates who will need substantial training or do not have a proven track record. So, if you are without a job, focus on your existing strengths, this will get you back into a position more quickly than trying to do something you haven't done before."
Don't be afraid to make a career move, but be prudent and do your homework.
"If it is the right time for you to make a move for all the right reasons (lack of growth, better hours, higher salary) the economic recession should not be the hindrance to this type of move," says Welch. "The same way companies layoff because of ‘business decisions' employees need to realize that making a smart career move is a ‘business decision' for them as individuals. If a company has an opening, it is pretty obvious they are not worried about potential layoffs," she adds.
If your firm has already gone through a round of layoffs, you may be feeling overworked and discontented. Says Souza, "Many firms (unfortunately) have eliminated staff, leaving the remaining staff to do two or three peoples' jobs, causing the best staff who have stayed on to feel like they are underappreciated. If this happens it is a key time to seek a company that will appreciate what you have to offer."
Teryn Spencer, a legal recruiter with Davidson Legal Staffing, says "There are solid law firms and corporations out there that are hiring." Of course, there is never a guarantee that you won't be laid off down the road. But, she adds, "As recruiters, it is not our intention to ever place a candidate with a firm that is unstable."
If a firm is willing to pay an agency a search fee for the right candidate in this economy, that is a good sign of stability. Of course, it's important to research potential employers carefully, and vet any opportunities that come your way carefully to protect yourself as much as possible. Ask questions about a potential employer's economic viability and plans for future growth or contraction, and seek the assistance and counsel of an ethical legal recruiter.
We are certainly hopeful (and cautiously optimistic) that the New Year will bring renewed vitality to our economy and to the legal job market. Look for an updated "State of the California Legal Job Market" report in the first quarter of 2009. Happy Holidays to all!
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