Legal Recruitment from Ten-Percent Legal

Saturday, June 12, 2021

Legal Recruitment News June 2021

 June 2021 edition of Legal Recruitment News. It includes the Ten Percent Legal Recruitment job market report, locum hourly rates, careers advice and suggested interview answers.

 

https://www.ten-percent.co.uk/legal-recruitment-news-june-2021/

 

Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Licensed Conveyancers, Legal Cashiers, Fee Earners, Support Staff, Managers and Paralegals. Visit our Website to search our Vacancy Database.

Haggling for the sake of it - Recruitment Agency Fees

 

Haggling for the sake of it - what's your best price?

I recently took a call from a senior partner of a small niche commercial practice, who rang me up because he was looking to recruit a number of senior commercial lawyers and wanted our assistance. We spent about 20 minutes on the phone with discussions around his firm, his firm’s aspirations, future plans, recruitment needs and a chat about how we could help. We went through all of this before he asked about fees. I explained to him that our fees were 18% (see our website for a full breakdown).

He informed me that his firm had enjoyed a long lasting relationship with a recruiter who had charged him a lot less and that he was hoping to emulate this with a future deal.

I explained that our fees were usually non-negotiable and that we worked on a set rate for everyone regardless of salary or seniority of the staff being recruited. I also suggested he stuck with the other recruiter as the rate (12%) is very good indeed! For a list of selected legal recruitment agency fees please click here: http://www.lawyer-recruitment.co.uk/legal-recruitment-agency-fees/

Fee Haggling

The senior partner seemed very surprised at this and a bit of email correspondence followed on with the basic premise being that as a recruitment agency we ought to be prepared to haggle on our fees, because this is expected. We politely declined and I referred him to a couple of our competitors who I know charge standard fees higher than ours but also very often are prepared to be haggled downwards to get to more competitive levels.

Over the years I’ve been in business I’ve started to learn, although it has taken me a long time, that if you have a fee that you charge, having carefully worked out the profit margins, costs of running the business etc then that will be the price. We do not negotiate for the sake of it (although we are always very supportive of legal aid firms).

I can see the senior partner’s point in this case because he is calling a recruitment consultant with the intention of offering them a long-lasting relationship in return for a reduced fee, but the reality of specialist legal recruitment is very often smaller sized clients (and most of ours are) will only use us once over a period of time. It is therefore it is unlikely that any reduction in our fee in most cases will benefit us in return for a higher number of vacancies. Particularly at the moment when we have plenty of vacancies in all areas of law but no candidates to fill them because of the effects of the pandemic.

Are Recruiters Like Estate Agents?

I suppose an analogy is where you look to sell a house through an estate agent. If there are 30 estate agents all offering exactly the same service without any difference at all and all with the same access to potential purchasers, then there would be no logic in going for the most expensive estate agent.

The estate agents on the market will be prepared to haggle on their fees because they are desperate or keen to get the business if they can see a benefit of selling the house. However this is rarely the case and there is of course a substantial difference between different estate agents. The estate agents with a national presence and a well established database and strong reputation will be able to command more of a fee than an estate agent just started out.

The same applies in the recruitment world – there are plenty of recruitment agencies out there, most of whom have access to various job boards, but most of whom do not have their own databases of candidates stretching back many years. Of course there are the well established agencies like Michael Page, Badenoch & Clark, the Sellick Partnership and G2 Legal, there are also lots of smaller ones who do not have the established database & reputation and are simply taking vacancies and posting them across job boards to see if they can attract any new applicants.

Database Access

We provide a specific service with access to our database of over 12,000 solicitors who have registered with us over the last 20 years. Whilst we also have access to job boards, including the Law Society Gazette and Reed, we don’t make most of our placements from this. The vast majority of our placements come from our candidate database from lawyers who have been registered with us for a number of years, as well as new candidates finding our websites and registering with us, or looking at specific jobs on our website. The same will apply to those of our competitors who have been around for quite a long time as well.

Bear this in mind when discussing fees with agencies – very often a discussion about fees is probably not the best way to start your relationship with a recruitment consultant, but instead to simply ask them to send you CVs. You may find that the agency who want to offer you a 'too good to be true' deal of 10% fees or similar will be more than happy to do so because they know the chance of actually finding a candidate using their limited database is going to be extremely low.. See what the recruitment agents have for you before you rule any out in terms of price – it doesn’t necessarily mean that a low fee charging recruitment agency is going to do a better job for you than a higher paid one.

 Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Licensed Conveyancers, Legal Cashiers, Fee Earners, Support Staff, Managers and Paralegals. Visit our Website to search our Vacancy Database.

Tuesday, May 18, 2021

Charity Donations May 2021 by the Ten Percent Group of Websites

 

The trustees of the Ten Percent Foundation finally met yesterday after a lengthy delay and made the decision to make the following donations:

Cure Parkinsons Trust, London - £500
Reprieve, London - £500
Unlock, London - £500
Stamma, London - £500
Flying High Trampoline Club, Denbigh - £2,000
STAND, North Wales - £1,000
The First Step, Merseyside - £2,500
Argoed Sports Association, Mold - £3,000
Dreams & Wishes, South Wales - £300
Walthamstow Toy Library, London - £300
Mencap Liverpool - £225
Calon Riding for the Disabled, North Wales - £500.

Full article on our donations to follow next month.

Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Licensed Conveyancers, Legal Cashiers, Fee Earners, Support Staff, Managers and Paralegals. Visit our Website to search our Vacancy Database.

Legal Recruitment News May 2021

Welcome to the May 2021 edition of Legal Recruitment News. It includes our legal job market report, locum hourly rates, careers advice, selling a law firm, working as a locum via PAYE, getting into commercial law after a high street training contract and suggested interview answers.

https://www.jonathanfagan.co.uk/legal-recruitment-news-may-2021/

 

Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Licensed Conveyancers, Legal Cashiers, Fee Earners, Support Staff, Managers and Paralegals. Visit our Website to search our Vacancy Database.

Saturday, April 10, 2021

Legal Recruitment News April 2021

 Legal Recruitment News from the Ten Percent Group. 

http://www.legal-recruitment.co.uk/legal-recruitment-news-april-2021/

Legal Recruitment News April 2021 from Ten Percent Group of websites including the Legal Job Market Update, locum solicitor hourly rates, articles on booking locums for more than one field of law, interview practice questions, law firm valuations, IR35 and more.

 Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Licensed Conveyancers, Legal Cashiers, Fee Earners, Support Staff, Managers and Paralegals. Visit our Website to search our Vacancy Database.

Thursday, March 11, 2021

Legal Recruitment News March 2021

 https://www.ten-percent.co.uk/legal-recruitment-news-march-2021/

Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Licensed Conveyancers, Legal Cashiers, Fee Earners, Support Staff, Managers and Paralegals. Visit our Website to search our Vacancy Database.

IR35 - Something to Worry About?

 

No, if you are a small business hiring locums - see the definition below. Please note that this article is not intended as tax or legal advice to be relied on - simply our thoughts.

IR35, for those not in the industry, is a tax rule related to 'off-payroll working' and is all about levelling up tax contributions so that self-employed workers in theory pay the same as employed workers. It is therefore relevant to locums working in law firms and in house legal departments.

A change is coming in from April 2021 - from the 6th April the clients/fee payers will be responsible for managing IR35.

Firms will be required to state whether a role is 'outside of IR35', which will mean that the assignment in their opinion falls into the definition of self-employed work and will be paid gross/in full, or 'inside IR35', which means that it is caught by the legislation and hence net of tax and national insurance.

If a role is 'inside IR35' then it means that the hirer has decided that the worker is not truly self-employed and therefore will have to have NI and PAYE tax deducted from any payments made.

The rule has been applied to the public sector for some time and has caused a few nightmares for contractors, pushed up prices and made it harder to find temporary workers willing to shoulder the extra tax burdens that are passed onto them as a result of the legislation. This is particularly the case where hirers have applied IR35 rules on a blanket basis, mainly to avoid any future issues with HMRC and pass the burden of any unpaid tax onto the introducing agency or the contractor.

However... the main point if anyone talks about IR35 (and we are hearing the term used a lot by some locums!) is that it does not apply to smaller sized companies and hence does not become an issue.

A company is classed as a small company if it meets two of the following three conditions:

An annual turnover of less than £10.2 million, a balance sheet total of less than £5.1 million and fewer than 50 employees.

This applies to most law firms in most sectors and hence the IR35 rules will not usually apply. In these cases the contractor remains responsible for determining their own tax position.

Blanket Assessments

We have come across local authorities and larger companies who will simply state that all their assignments are going to be inside IR35, regardless of actual status of the contractors in question. This has caused issues. The REC (the recruitment industry trade body) has produced the following list of reasons why this is a very bad idea. I am not sure some of them are particularly good arguments, but here it is..

The regulations require you to assess contractors on a case-by-case basis. So, if you’re assessing everyone the same without looking at people as individuals and how they provide their service, that’s not right.

Contractor relations affected. Contractors are rightly concerned about their tax liabilities if you’re just making a blanket decision without considering what they actually do, or have done in the past. For example, contractors who have worked without supervision and have autonomy being classified as same as those who have worked under the direct supervision of the client. It would be understandable for contractors to feel undervalued and at risk.

Future litigation. Contractors will be able to take clients and agencies to court to claim back costs of wrongly working inside IR35. So not looking at contractors individually could have a big financial consequence later on.

Complex supply chain. If you’re forcing your contractors to go PAYE, they may go through different routes to achieve that – direct employment or using a so-called umbrella company or even a sole trader. That will make your supply chain more complex and compliance more difficult to establish.

Additional benefits. There are regulatory changes that come with moving people to PAYE as they will have more legal entitlements. For example, you’ll need to think through the Agency Workers Regulations and treating staff equally with your own employees on pay, hours and holidays.

The CEO of the REC finished his article with the following quote:

"There’s a moral to this story. Just because the government hasn’t thought through IR35 properly doesn’t mean you should follow their example."

Here's hoping that the legislation never applies to smaller businesses!

Links:

https://www.gov.uk/guidance/private-sector-off-payroll-working-for-clients
https://www.rec.uk.com/recruiters/legal/ir35
https://www.paystream.co.uk/helphub/ir35/articles/ir35-mythbuster-3-the-small-company-exemption/

 

Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Licensed Conveyancers, Legal Cashiers, Fee Earners, Support Staff, Managers and Paralegals. Visit our Website to search our Vacancy Database.

Wednesday, March 10, 2021

Podcast Talk by Jonathan Fagan - High Street vs Commercial, Nepotism in Law, Criminal Law - Avoid like the plague?, Problems getting Training Contracts

Jonathan Fagan, MD of Ten Percent Legal Recruitment, gave a talk to the 93 Percent Club in Guildford on Monday 8th March 2021. In case you missed it - here is a full recording. 

 https://anchor.fm/jonathan-fagan/episodes/Jonathan-Fagan-Talk-to-the-Guildford-93PercentClub-es6634

Legal Career Advice from Ten Percent Recruitment Agency London:

 Event Details:

·         Speaker – Jonathan Fagan – Director at Ten Percent Legal.

·         Date – 8th of March 2021 at 6pm.

·         Platform for Event – Zoom.

About the Recruitment Agency:

·         Small, specialist online Legal Recruitment consultancy, established in April 2000 by two of the current directors – Jonathan and Claire Fagan.

·         Over 10,000 solicitors registered with the agency and work with hundreds of law firms across the UK.

·         If you want any more advice or information with legal issues not discussed at the event can follow this link to their page https://www.ten-percent.co.uk/articles/     

 

Introduction to Jonathan:

·         From a state school background and is a non-practising solicitor.

 

Topics Discussed:

·         Problems getting training contracts – 2:2 degrees, poor A levels, no work experience of overseas qualifications.

·         High Street v Commercial Law – what is the difference?

·         Is there nepotism in the legal profession and how can I use my own connections?

·         The lowdown on criminal law – avoid like the plague?

 

Structure of the Event:

·         18:00 – Start.

·         18:00-18:10 – Jonathan’s introduction and his route into law.

·         18:10-18:25 – Problems getting training contracts -2:2 degrees, poor A levels, no work experience, or overseas qualifications.

·         18:25-18:40 – High Street v Commercial Law – what is the difference?

·         18:40-18:55 – Is there nepotism in the legal profession and how can I use my own connections?

·         18:55-19:10 – The lowdown on criminal law – avoid like the plague?

·         19:10-19:30 – Short Q and A Session.

·         19:30 – End of the Event.

 

Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Licensed Conveyancers, Legal Cashiers, Fee Earners, Support Staff, Managers and Paralegals. Visit our Website to search our Vacancy Database.

Monday, February 08, 2021

Legal Recruitment News February 2021

Click the link below for the Legal Recruitment News - our monthly newsletter (now 13 years old!) from the Ten Percent Group of recruitment websites. 

https://www.ten-percent.co.uk/legal-recruitment-news-february-2021/

Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Fee Earners, Support Staff, Managers and Paralegals. Visit our Website to search our Vacancy Database. Our Legal Careers Shop has eBooks on CV Writing for Lawyers, Legal Job Interview Guide, Interview Answers for Lawyers, NQ Career Guide, Guide to Finding Work Experience or a Training Contract and the Entrants Guide to the Legal Profession.

Charity Donations 2021 - Suggestions Welcome

Our charity bank account currently has over £24,000 in it, which means that it is that time in the year again when the trustees of the Ten Percent Foundation meet to discuss our donation of 10% of the annual profits of the Ten Percent Group of websites, which include Ten Percent Legal, Ten Percent Financial, Jonathan Fagan Law Firm Sales, TP Transcription and Chancery Lane.

We avoid charities with top heavy staffing & admin costs and welcome any suggestions from clients, candidates and general readers of our newsletters. We particularly like small charities with limited funds. Examples of donations made over the past 20 years can be found on our website at [www.tenpercentfoundation.org](http://www.tenpercentfoundation.org). To suggest a charity please email Jonathan Fagan at cv@ten-percent.co.uk. We consider all requests very carefully. 

Jonathan Fagan is Managing Director of Ten-Percent Legal Recruitment and a non-practising Solicitor. Ten-Percent Legal Recruitment provides online Legal Recruitment for Solicitors, Legal Executives, Fee Earners, Support Staff, Managers and Paralegals.