Highest Earning Legal Specialties and Growth
The legal industry — in California and elsewhere — is an ever-shifting tapestry of opportunity and growth. Attorneys with a particular focus/passion in the legal industry should stay their course, naturally, but those attorneys interested in pursuing new opportunities and maximizing their earning potential would do well to keep apprised of significant, changing trends in the industry at-large.
Here at Garb Jaffe & Associates, our legal recruiters are well-integrated in the California legal industry and are aware of both current and projected trends. We are not solely reliant on published data — with points-of-contact in numerous firms and in-house departments throughout California (and elsewhere), we have the means by which to identify industry trends before they are generally known.
General Trends
According to a 2016 report conducted by the Bureau of Labor Statistics, attorneys earn a median salary of $118,160 across the country, though attorneys in California are significantly higher earners, boasting $158,200 on average. Job prospects for attorneys are likely to track the average growth of most other jobs, as the legal market continues to correct itself in the wake of the recession.
Corrections in the legal market are leading to stratification, consolidation, and growth in a variety of sectors. Perhaps the most significant changes are in trial litigation practices throughout the country (and California). Litigation positions in Biglaw are likely to see continued consolidation as companies have largely adapted to lower-cost strategies for dispute resolution. In many cases where litigation would have otherwise been pursued, companies are opting for alternative, cheaper resolution. In an effort to keep costs from spiraling out of control, many corporations have expanded their in-house litigation departments so that they can handle less substantial matters on an internal basis. Litigators may therefore find that there are new opportunities for those with specialized litigation experience to make the transition into an in-house role.
Most Lucrative Specialties
Generally speaking, industry observers have noted that the following legal specialties are seeing the highest salaries in recent years:
- Complex litigation
- Corporate law
- Intellectual Property
- Health law
Bear in mind that the supply of attorneys continues to outstrip demand. As such, committing to a specialty early-on in your career is likely to bear fruit, particularly as both law firms and in-house departments are rather aggressively pursuing specialized attorneys.
In-House Compensation and Perks
In-house compensation tends to trail behind law firm compensation, as a general rule. Some attorneys report salary cuts nearing 50 percent. It’s worth noting, however, that in-house compensation tends to be supplemented in a number of ways: in-house attorneys may be granted stock options, significant sign-on bonuses, and more comprehensive benefits packages than competing law firms. Over time, in-house attorneys may also have opportunities to transition out of a purely legal position and taking on a broader, more advisory role within the company, which could lead to a substantial compensation spike, depending on the responsibilities of the new role.
Law Firm Compensation and Perks
In Biglaw, firms follow stepwise compensation schemes, which ensures that attorney compensation remains transparent. For example, a fourth-year associate at a Biglaw firm office in San Francisco will have a clear understanding of what they will earn the next year, as well as the ballpark earnings of their colleagues. There is still room for compensation diversity on a firm-by-firm level. Some firms have higher baseline compensation, some allow for more significant bonus structures, while others increase salaries at a higher rate, thus encouraging firm loyalty.
Of course, compensation changes on the partner track, with substantial variation depending on the firm. Firms may attempt to compensate alternative track non-partner attorneys that through other means, such as additional bonuses (though this will not come close to the profit-sharing arrangements made available to partners).
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If you’ve been working in a firm or in-house department for some time and are looking to make a career change — whether in the interest of increasing your earning capacity, or simply for the purpose of an office culture “change of scene” — it’s important to consult with an experienced legal recruiter who can identify potential best-fit positions and assist you throughout the recruitment process. Here at Garb Jaffe & Associates, our recruiters have a proven track record of success in placing attorneys with prestigious law firms and in-house legal departments throughout the state of California, and will advise throughout the process to ensure that you secure an ideal placement. We believe that industry trends are useful barometers for understanding potential growth areas, and to that end, we are well-equipped to help you target career opportunities.
Call us today at (310) 207-0727 to schedule a consultation with a legal recruiter today. During this consultation, we will evaluate your preferences and work with you to develop next steps for moving forward with applications.