Laurence
Simons

EMEA Legal Department
Benchmarking Survey
2013

In association with:
Contents
Executive summary

3

Key findings

5

Introduction & profile of respondents

6

Profile of companies

7

Revenue...
Executive
summary

The ACC & Laurence Simons EMEA Legal
Department Survey 2013 builds on previous
research, confirming est...
Department Structures  Responsibility

23%

The majority of legal departments
continue to be structured along a
mix of bus...
Key Findings
Introduction
 profile of
respondents

In spring 2013, Laurence Simons and the Association of Corporate
Counsel (ACC) once ...
Profile of
companies
COMPANY’S GLOBAL HQ

12%
United
Kingdom

21%

North America

2%

58%

Russia / CIS

Europe

1%
Middle...
€1,116,803,510

Revenue
 legal spend

Average actual / estimated EMEA
revenues of the company in 2012

12
Average EMEA dep...
Reporting lines
 team size

Legal departments continue to play the key
role not only in managing legal risk, but also
in m...
TO WHOM DOES THE HEAD OF
THE REGULATORY / COMPLIANCE
DEPARTMENT REPORT TO?
63%
General Counsel /
Top Legal Officer

IS THE...
Department structures
 responsibilities

Respondents report a variety
of methodologies in how EMEA
legal departments are s...
Internal  external
work split

When it comes to the main types of work
legal departments are focused on, this
year’s findi...
WHICH AREAS OF LAW DO YOU MAINLY
COVER INTERNALLY?

WHICH AREAS OF LAW DO YOU TEND TO
SEND TO LAW FIRM(S)?

24%

Banking /...
DO YOU USE ANY LEGAL PROCESS
OUTSOURCING FIRMS OR OTHER
ALTERNATIVE PROVIDERS?
5%

Other

18%
Yes

77%
No

because of a re...
Mission critical

In an uncertain economic and business environment, where
we continue to see significant regulatory chang...
WHICH AREAS OF LAW WERE
MISSION CRITICAL IN 2012?

WHICH AREAS OF LAW DO YOU ENVISAGE
TO BE MISSION CRITICAL IN 2013?

14%...
Challenges

When it comes to the most important professional challenges
facing in-house lawyers, pressure to do more with ...
Team building
 recruitment

The trend toward legal departments taking
on more work, and reducing the flow to
external advi...
But there is a sense that
tighter management over legal
departments is having an
impact on staff — exactly half of
respond...
Laurence Simons
Founded in 1988, Laurence
Simons is a specialist
international legal recruitment
consultancy. Our clearly
...
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EMEA Legal Benchmarking Survey by Laurence Simons

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This survey by laurence simons reveals the trends and patterns in legal departmennts across the world.

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EMEA Legal Benchmarking Survey by Laurence Simons

  1. 1. Laurence Simons EMEA Legal Department Benchmarking Survey 2013 In association with:
  2. 2. Contents Executive summary 3 Key findings 5 Introduction & profile of respondents 6 Profile of companies 7 Revenue & legal spend 8 Reporting lines & team size 9 Department structures & responsibility 11 Internal & external work split 12 Mission critical 15 Challenges 17 Team-building & recruitment 18 Thank You To all who contributed this year. We hope you find this document useful. As always we are very interested to hear your feedback and suggestions for future editions.
  3. 3. Executive summary The ACC & Laurence Simons EMEA Legal Department Survey 2013 builds on previous research, confirming established trends and revealing new ones. As the economic downturn continues to bite across Europe and company executives, including general counsel and heads of legal, look to respond accordingly. This is having a clear impact on the way legal departments are managing their workloads, budgets and are being staffed. In particular, company executives, are on the whole looking to respond to increasing pressures of cost containment — to continue to do more with less. Compliance Most respondent companies now have dedicated compliance / regulatory functions (67%), or see the requirement to create one. Nonetheless it is to the EMEA head of legal / general counsel to which most such functions continue to report (63%). Profile of Companies Revenue & Legal Spend T he 2013 Survey draws on the responses of 182 legal departments, a 60% increase from the number received last year (114). 12% 58% 21% T he majority of respondent organisations are headquartered in Europe (58%) with the United Kingdom representing (12%) and with the next best represented region being North America (21%). The average EMEA revenue of respondents is The average internal spend among all respondents is The median internal spend among all respondents is €1,117bn €17m €800,000 while average global revenues stand at €2,346bn. with the average external spend being €15,4m; significantly up from last year’s data. with the median external spend being €500,000. Of the business sectors represented by respondents, the most prominent are: 25% T echnology Telecoms 18% The majority of respondents expect internal legal spend to stay the same (46%) or increase (30%). T he majority of respondents expect legal department external spend to stay the same (46%) or fall (36%). M anufacturing Engineering 10% Energy Utilities 9% FMCG Retail 30% 46% 36% 8% Banking Finance Laurence Simons Association of Corporate Counsel | EMEA Legal Department Benchmarking Survey 2013 3
  4. 4. Department Structures Responsibility 23% The majority of legal departments continue to be structured along a mix of business line, geography and area of law. Law firms continue to dominate legal departments’ external spend, but LPOs and alternative providers are utilised by just over twice as many respondents (23%) as in the 2012 EMEA survey results. Internal External Work Split The major areas of work legal departments are currently focused on are: • company and commercial, • bribery / corruption / compliance, • intellectual property, • regulatory, and • competition / antitrust. Albeit the majority of respondents have seen a decrease in internal emphasis across all such areas except regulatory — which is seeing a growing focus, as are more areas involving finance and tax. L ess internal focus is being placed on areas such as: • competition / antitrust, • e-commerce, and IT • abour and employee benefits. l The major areas of law being sent externally to law firms continues to be: • dispute resolution, • abour and employee benefits, l • intellectual property, and • tax. Many of these areas are also being outsourced more frequently than in previous years. Mission Critical Those areas of law which are being sent out to law firms less include: • competition / antitrust, • banking and finance, • capital markets, • eal estate r and environmental, and • ribery / corruption / b compliance. 4 Dispute resolution and regulatory have risen in significance over the past year, and most areas considered mission critical through 2013 are seeing a greater focus on in-house capability. There is a trend toward legal departments taking on more work and reducing the flow to external advisers, which is also apparent in the way they are being staffed with an evident recent upturn in recruitment. Challenges O perational issues most keep in-house lawyers awake at night — dominated by the need to do more with less and contain legal costs. Next come concerns over the blurring of the responsibilities The leading mission-critical areas of law for legal departments over 2012 were considered to be: • company and commercial, • competition and antitrust, • intellectual property, and • bribery / corruption / compliance. of legal departments and managing regulatory change, and compliance and reporting obligations — well ahead of personal development and job satisfaction. Around 49% of respondents predict legal departments to stay the same size, 40% expect an increase and only 10% foresee a decrease in headcount.
  5. 5. Key Findings
  6. 6. Introduction profile of respondents In spring 2013, Laurence Simons and the Association of Corporate Counsel (ACC) once again invited law departments to complete the EMEA Legal Department Survey, to learn more about their teams, and the business challenges facing them in Europe, the Middle East and Africa (EMEA). The findings of this year’s survey build on those of last year and of previous years, confirming established trends and revealing new ones. As the economic downturn continues to bite across Europe particularly, company executives including general counsel, are on the whole looking to respond to increasing pressures of cost containment — to continue to do more with less. This year, we received responses from 182 legal departments, significantly up from the number received last year (114), and which were drawn from the range of business sectors. The most prominent being: • Technology Telecoms (25%), • Manufacturing Engineering (18%), • Other (18%), • Energy Utilities (10%), • FMCG Retail (9%), and • Banking Finance (8%). Such a breakdown differs marginally from the 2012 survey, where manufacturing companies were most prominent (23%), followed by TMT (21%), Life Sciences (16%) and Commercial (11%). The companies represented were drawn from across the globe, albeit the majority (58%) were headquartered in Europe — United Kingdom companies representing 12% of total respondents — with the remainder from North America (21%), Asia-Pacific (5%), Russia / CIS (2%), Africa (1%) and the Middle East (1%). This year, general counsel again accounted for the largest body (51%) completing the survey, followed by deputy / regional general counsel (19%) and legal counsel (18%). Of the remaining 12%, the largest single body of respondents were heads of regulatory affairs, or chief compliance officers. In this report, we have used medians as well as means (the more common form of average). The median is the mid point of a set of values and is a more useful indicator when a few outliers would otherwise skew the average, as with the fully loaded hourly rate for example. RESPONDENT JOB TITLE 12% Other 18% Legal counsel 19% Deputy / regional GC 6 51% General counsel / CLO / legal director
  7. 7. Profile of companies COMPANY’S GLOBAL HQ 12% United Kingdom 21% North America 2% 58% Russia / CIS Europe 1% Middle East 5% 1% Asia Pacific Africa COMPANY’S INDUSTRY SECTOR* 5% 7% 1% Aerospace Defence Leisure Hospitality 8% Professional Business Services 7% Banking Finance 3% Life Sciences Healthcare 7% Property Real Estate 4% Chemicals Minerals 10% Energy Utilities 3% Logistics Public Sector / Government 18% Manufacturing Engineering 9% FMCG Retail 18% 3% Media, Sports Entertainment 3% 2% Insurance Pensions 25% Technology Telecoms Planes, Trains Automobiles Other 0% Charities *Respondents could select all options that applied. Laurence Simons Association of Corporate Counsel | EMEA Legal Department Benchmarking Survey 2013 7
  8. 8. €1,116,803,510 Revenue legal spend Average actual / estimated EMEA revenues of the company in 2012 12 Average EMEA department size (practising lawyers) €93,066,959 Average revenue per lawyer This year’s survey reaches much deeper than previous years, drawing in more companies with a greater international reach. The average EMEA revenue of respondents is €1,117bn while average global revenues stand at €2,347bn. As regards to how this translates into legal spend — the average internal spend among all respondents stands at around €17m, with the average external spend at €15.4m; the latter including money spent on law firms, vendors, expert witnesses, investigators and consultants, but not patent and trademark fees. But while this year’s figures may contrast with those of last year (€3.8m internal spend versus €5.8m), respondents anecdotally report strong and continuing budgetary pressures. “I have the somewhat rare good fortune to be growing my team at the moment; but nonetheless, the pressures of cost containment, proper management of outside counsel, and internal professional development and career progression are real for me and my team too,” says one general counsel. When looked at more closely, the median internal spend among all respondents is perhaps inevitably different from the headline average, at €800,000 (however significantly down from last year’s median of €1.5m); with this year’s median external spend being €500,000 — in line with last year’s external median figure of €482,680, but also well down on 2008’s median of €553,000. Significant however, in both average and median measures, is that internal spend exceeds external spend. There is clearly greater importance being placed on ensuring budgetary certainty within legal departments – bringing more work in-house provides clearer cost control than estimating external lawyers’ fees. But even this may be changing. Pressure is also reflected in how respondents view the likelihood of budgetary changes over the coming year. Less than half of respondents believe that their internal or external spends will stay the same (46%). But more respondents expect their external budgets to fall (36%) than rise (18%). Exactly 30% of respondents predict an increase in internal spend, compared to around a quarter (24%) who predict a decrease. A quote from one respondent perhaps best demonstrates the rationale behind the data: Average actual / estimated worldwide revenue of the company in 2012 “Our organisation has been restructured and the scale reduced — we are more focussed on fewer areas, enabling us to keep costs low. We are unlikely to expand.” The median fully loaded hourly rate of €223 (based on an assumption of 1,800 hours worked by each lawyer per annum) is up a little from 2012 when it stood at €204. This could just be a factor of the change in the respondent pool rather than a clear sign that salaries are rising or that companies are letting overheads creep up a little again. 53 Average worldwide department size (practising lawyers) €44,273,646 Average worldwide revenue per lawyer €800,000 Median actual / estimated total internal legal spend in € for 2012 €500,000 Median actual / estimated total external legal spend in € during 2012 €223 Median fully loaded hourly rate per lawyer IS YOUR 2012 EXTERNAL LEGAL SPEND BUDGETED TO INCREASE OR DECREASE IN 2013? 18% Increase 46% Stay the same 36% Decrease IS YOUR INTERNAL LEGAL SPEND BUDGETED TO INCREASE OR DECREASE IN 2013? 30% Increase 8 €2,346,503,244 46% Stay the same 24% Decrease
  9. 9. Reporting lines team size Legal departments continue to play the key role not only in managing legal risk, but also in managing compliance and regulatory issues, this year’s survey confirms. Law may be the core responsibility, but the remit of legal departments, and particularly general counsel, increasingly extends much further. Virtually all respondents (99%) report a solid reporting line from the EMEA general counsel, albeit to different tiers or management. A third (33%) say they report directly to the group general counsel, with slightly fewer reporting direct to the president / chief executive officer (CEO), and with 17% reporting to the chief financial officer (CFO). Two-thirds of respondents (64%) this year also state that there is a dotted reporting line from the EMEA GC — with the CEO (32%), Group GC (23%) and CFO (9%) most frequently named as secondary point of reference. The perception of the GC as an independent leadership role is confirmed by the number of respondents who state that they do not have a seat on their company’s board (61%) — this year’s findings reflecting, however, an increase in board membership when compared to last year, when only 25% of respondents reported they had a seat. Legal teams seem also to be getting larger. The average size of legal departments with lawyers reporting directly or indirectly to the EMEA general counsel / head of legal, according to respondents, is 12 (up from 10.5 in 2012) albeit with a range of responses varying between zero and 150 (again contrasting with a range extending from zero to 120 last year). This is in contrast to an average of 53 practising lawyers in respondent organisations’ legal departments worldwide (again up from last year’s 39), with a range of responses from one to 600 (compared to one to 212). Interestingly, legal departments’ appetite for secondees from law firms or legal staffing agencies has changed from previous years, perhaps unsurprising given general counsel’s evident budgetary pressures — 38% of departments now state that over the past year they have used such extra external resource, up 13 percentage points from last year’s 25%, the equivalent of a 52% increase Regulatory compliance The majority of respondents (67%) report that the legal department has a dedicated compliance / regulatory function. With a notable minority (2%) stating that although no such function currently exists, there is a requirement for one. It is, however, to the general counsel / head of legal that the majority of heads of regulatory / compliance nonetheless report (63%), with the CEO / president next most frequently mentioned (21%). TO WHOM DOES THE GENERAL COUNSEL (THE TOP LEGAL OFFICER) IN EMEA REPORT? 33% 23% CLO CLO 32% 29% CEO CEO 17% 9% CFO CFO 21% 36% Other Other SOLID LINE DOTTED LINE Laurence Simons Association of Corporate Counsel | EMEA Legal Department Benchmarking Survey 2013 9
  10. 10. TO WHOM DOES THE HEAD OF THE REGULATORY / COMPLIANCE DEPARTMENT REPORT TO? 63% General Counsel / Top Legal Officer IS THE EMEA GENERAL COUNSEL A MEMBER OF THE EMEA BOARD OF DIRECTORS? 21% 7% CEO / President 9% Other C-level executive Other HOW MANY PRACTISING LAWYERS IN EMEA REPORT DIRECTLY OR INDIRECTLY TO THE HEAD OF LEGAL FOR EMEA? 39% 61% 0 lawyers DO YOU HAVE A DEDICATED COMPLIANCE / REGULATORY FUNCTION WITHIN YOUR BUSINESS? 67% Yes Minimum 12 lawyers Average 150 lawyers Maximum HOW MANY PRACTISING LAWYERS ARE THERE IN TOTAL WORLDWIDE? 26% No 2% No, however there is a requirement for one 5% Other* 1 lawyer Minimum 53 lawyers Average 600 lawyers Maximum *Respondents that indicated ‘Other’ included organisations that do not have a dedicated compliance function as the regulatory responsibility is shared either amongst those in other departments such as finance, or is handled by the legal department. 10
  11. 11. Department structures responsibilities Respondents report a variety of methodologies in how EMEA legal departments are structured. Geography (17%), area of law (13%) and business line (11%) remain significant, albeit with significantly more respondents this year utilising area of law when compared to the previous year’s findings (3%), and slightly more preferring geography (14% in 2012). Business line has seen a minor drop in preference (down from 12%). The findings this year reinforce the previous year’s analysis that a larger number of legal departments utilise a combination of factors — significant, however, is the finding that HOW IS YOUR LEGAL TEAM STRUCTURED? fewer departments are using a dual-approach of business line and geography (12% compared with last year’s (25%); but as with last year, an equal number of departments (5%) utilise a mix of geography and area of law, or business line and area of law — albeit down from 9%. It remains the case that the majority of respondents continue to prefer to adopt a combination of all three options — area of law, business line and geography — and that more legal departments are adopting such a structure (up to 37% from 28%). 13% AREA OF LAW 5% 11% BUSINESS LINE 5% 37% 17% GEOGRAPHY 12% DID YOU HAVE ANY SECONDEES FROM LAW FIRMS OR LEGAL STAFFING AGENCIES DURING 2012? 38% 62% Laurence Simons Association of Corporate Counsel | EMEA Legal Department Benchmarking Survey 2013 11
  12. 12. Internal external work split When it comes to the main types of work legal departments are focused on, this year’s findings reinforce those of last year’s report — although there is an apparent growing focus on bringing more financial and regulatory issues in-house. Company and commercial continues to dominate, with the vast majority of departments managing such issues internally where they can (86%) — albeit this is down on last year’s 94%. Next in importance come bribery / corruption / compliance (64%), intellectual property (55%) and regulatory issues (51%) — reflecting perhaps the continuing implementation of new legislation and regulation notably across Europe, including new banking and capital adequacy requirements, as well as the rising application of extra-territorial laws, such as the US Foreign Corrupt Practices Act and UK Bribery Act. That just over half of all respondent legal departments now manage regulatory issues in-house reflects an increase on last year (31% in 2012), a trend that is matched across the financial arena — with greater 12 focus also now being placed by departments on insurance and reinsurance (up to 30% from 14%), banking and finance (24% from 14%), restructuring and insolvency (17% from 11%), tax (17% from 8%), and capital markets (12% from 5%). Those areas of emphasis that are down on 2012 include however, bribery / corruption / compliance — perhaps reflecting the growth also in dedicated departments — competition / antitrust (50% this year, down from 66%), dispute resolution (40%, down from 55%), IT e-commerce (46%, down from 60%), and labour and employee benefits (41%, down from 63%). The drop in the volume of such work being managed internally may, however, be partly explained by an increase in such matters being sent more routinely to external counsel, perhaps
  13. 13. WHICH AREAS OF LAW DO YOU MAINLY COVER INTERNALLY? WHICH AREAS OF LAW DO YOU TEND TO SEND TO LAW FIRM(S)? 24% Banking / Finance 64% Bribery / Corruption / Compliance 12% Capital Markets 22% 86% Company Commercial 17% 50% Competition / Anti-Trust 32% 40% Dispute Resolution 65% 17% Insolvency Restructuring 15% 30% Insurance Reinsurance 55% Intellectual Property 34% 46% IT e-commerce 10% 41% Labour Employee Benefits 41% 33% Real Estate Environmental 21% 51% Regulatory 19% 17% Tax 33% 10% Other 11% Laurence Simons Association of Corporate Counsel | EMEA Legal Department Benchmarking Survey 2013 28% 8% 4% 13
  14. 14. DO YOU USE ANY LEGAL PROCESS OUTSOURCING FIRMS OR OTHER ALTERNATIVE PROVIDERS? 5% Other 18% Yes 77% No because of a reduction in the work type itself. Five years on from the onset of the economic downturn and many businesses have now completed major restructurings, divestment and redundancies, to better cope with reduced demand or a geographic refocus. Of those areas of work most routinely outsourced to law firms, dispute resolution remains dominant (65%, although down from 70% last year), followed by labour and employee benefits (up to 41% from 33%), intellectual property (up to 34% compared to 28%), and tax (also up, to 33% from 30%). Also being more routinely outsourced is 14 restructuring and insolvency advice (up to 15% from 8%), regulatory matters (up to 19% from 8%) and IT and e-commerce (now 10% from 6%). Areas in which there has been a notable drop in the volume of work being sent out include competition / antitrust (at 32%, down from 37%), banking and finance (down to 34% from 36%), capital markets (down to 22% from 25%), real estate and environmental (down to 21% from 30%), bribery / corruption / compliance (down to 8% from 12.5%), and insurance and reinsurance (down to 4% from 8%). LPO oh so steadily Respondents state that law firms continue to manage most departments’ external legal needs — accounting for 77%, by volume, of the work done. Nonetheless, there is a growing tendency towards the use of legal process outsourcers (LPOs) and other alternative providers. This year, just under a fifth of all respondents (18%) stated that they have utilised the services of an LPO over the past year, with a minority (5%) stating that they have used other types of providers. Clearly General Counsels’ desire to get the best value for money is being reflected in the types of external resource they are calling on, and while law firms still dominate, they are losing market share. Last year’s report revealed that only 11% of respondents had used an LPO or other alternative provider.
  15. 15. Mission critical In an uncertain economic and business environment, where we continue to see significant regulatory change and scrutiny, risk management clearly remains a core mantra of many legal departments. Company and commercial (43% of respondents), dispute resolution (28%), regulatory (26%), competition and antitrust (23%), intellectual property (22%), and bribery / corruption / compliance (21%), are the issues most frequently cited as mission critical for legal departments over the past year. And this year’s findings continue the trend of previous years. All the areas highlighted were also raised as areas of concern by respondents in 2011 — albeit dispute resolution and regulatory have emerged anew on general counsel’s radar. Looking forward through 2013, it is company and commercial (cited by 44% of respondents), regulatory (28%), dispute resolution (26%), and bribery / corruption/ compliance and intellectual property (both 24%) that continue to dominate legal department concerns. Following on is competition and antitrust (23%) and IT/ecommerce (18%) – both areas in which legal departments are also choosing to place greater in-house focus (see Internal and external work split) – alongside tax (16%), labour and employee benefits (15%) and banking/ finance (12%). The latter areas notable for the different emphasis legal departments place on them, with more looking to outsource such work. DO YOU ENVISAGE THE MISSION CRITICAL AREAS CHANGING IN 2013? 15% 85% Laurence Simons Association of Corporate Counsel | EMEA Legal Department Benchmarking Survey 2013 15
  16. 16. WHICH AREAS OF LAW WERE MISSION CRITICAL IN 2012? WHICH AREAS OF LAW DO YOU ENVISAGE TO BE MISSION CRITICAL IN 2013? 14% Banking / Finance 12% 21% Bribery / Corruption / Compliance 24% 10% Capital Markets 43% Company Commercial 44% 23% Competition / Anti-Trust 23% 28% Dispute Resolution 26% 8% 6% Insolvency Restructuring 8% 3% Insurance Reinsurance 2% 22% Intellectual Property 24% 19% IT e-commerce 18% 16% Labour Employee Benefits 15% 6% Real Estate Environmental 6% 26% Regulatory 28% 16% Tax 16% 6% 16 Other 5%
  17. 17. Challenges When it comes to the most important professional challenges facing in-house lawyers, pressure to do more with less budget and staff is what keeps most company lawyers awake; followed closely by the challenge of containing legal costs, cited by over half of all respondents (56%). WHAT PROFESSIONAL CHALLENGES ARE MOST IMPORTANT TO YOU? 21% 19% Career mobility and job satisfaction Information Privacy 46% 56% Containing legal costs Keeping up with increasing /  changing regulation / standards 37% Coordinating global compliance / operations 16% Outside counsel retention and management 28% 60% Corporate governance initiatives / standards Pressure to do more with less budget and  / or staff 14% 24% Corporate records  / e-mail management Protection of Intellectual Property or related disputes 18% 22% Data breaches and protection Safeguarding the company’s reputation / brands 21% 20% Ensuring an ethical corporate culture 36% Establishing effective compliance and reporting programs Technology developments 4% Operational demands are next high up on legal departments’ agendas — keeping up with increasing / changing regulations and standards is cited by 46% of respondents, while coordinating global compliance operations (37%), and establishing effective compliance and reporting programs (36%) come next. At the same time as legal departments are facing acute budgetary issues, the demand for greater risk management and managing behavioural issues is taking on ever-greater emphasis for the business as a whole. Indeed, more ephemeral — less hard law — issues have a growing importance. Safeguarding the company’s reputation / brand is cited by 22% of respondents, while ensuring an ethical corporate culture is cited by 21%; equal to individual concern over career mobility and job satisfaction, and ahead of human relations and employment issues (19%). The blurring of where legal department responsibility both starts and stops continues to be perhaps the most significant emerging operational trend and management headache. Whistleblower issues 19% 7% Human relations employment issues Other Laurence Simons Association of Corporate Counsel | EMEA Legal Department Benchmarking Survey 2013 17
  18. 18. Team building recruitment The trend toward legal departments taking on more work, and reducing the flow to external advisers, is also apparent in the way they are being staffed. Just under half of all respondents (49%) predict their departments will stay the same size over the coming two years — assuming no major mergers or spin-offs — reflecting a slight upturn on last year’s prediction (45%) of a continuation of the status quo. Almost a quarter of respondents (24%) have recruited externally in both Q1 of 2013 and Q4 of 2012, up from the 10% who had made hires in Q3 2012. The general recruitment trend continues to be one of an overall increase in hiring stretching back to Q3 2011. Notwithstanding this, 40% of respondents believe their department will grow with only 10% predicting the opposite, a decrease in size (compared to the 27% who last year predicted a fall in lawyer numbers). Nonetheless, an almost equal number (48%) reported that they had not lost a single staff member over the past 12 months, with 25% stating they had lost 1% —10% of total numbers. ASSUMING NO MAJOR MERGER OR SPIN-OFF, HOW DO YOU ENVISAGE YOUR LEGAL DEPARTMENT DEVELOPING IN TERMS OF SIZE OVER THE NEXT TWO YEARS?* 40% Increase 49% Stay the same 10% Decrease *The above graph totals 99% due to the rounding off of the figures. 18
  19. 19. But there is a sense that tighter management over legal departments is having an impact on staff — exactly half of respondents stated that the most common reason team members gave for leaving the business was career progression. Either new opportunities are opening up elsewhere, or doors are being closed, at home. Salary issues accounted for 13% of departures, while an almost equal number (12%) cited redundancy as the reason. Restructurings are continuing, but the number of staff numbers being laid-off is significantly down on last year’s 22% of respondents who cited it. Of the 20% of respondents who gave “other” as the reason, the recurring trends were of maternity leave, termination of employment for low performance, or employees leaving due to increased workloads and low salary levels. WHAT HAVE YOU FOUND TO BE THE MOST COMMON REASON FOR PEOPLE LEAVING THE BUSINESS? 50% Career progression 13% Salary 12% Redundancy 3% Retirement 2% Join competitor 20% Other WHEN DID YOU LAST RECRUIT EXTERNALLY?* 22% 2% 1% Q1 2011 Q2 2011 Q3 2011 4% 8% Q4 2011 Q1 2012 7% 10% 24% 24% Q2 2012 Q3 2012 Q4 2012 Q1 2013 *The above graph totals 102% due to the rounding off of the figures. Laurence Simons Association of Corporate Counsel | EMEA Legal Department Benchmarking Survey 2013 19
  20. 20. Laurence Simons Founded in 1988, Laurence Simons is a specialist international legal recruitment consultancy. Our clearly stated vision is: ‘To be the world’s leading company in legal recruitment by quality of service, market reputation, calibre of employees and global coverage’. Operating across Europe, Russia, the Middle East, Asia, North America and Latin America, Laurence Simons truly is an international recruiter. Our network of offices is unique in the field of legal recruitment and we have been pioneering in serving new markets, in particular across Europe and Latin America, the Middle East, Russia and India. For more information, visit www.laurencesimons.com The Association of Corporate Counsel The Association of Corporate Counsel (ACC) is a global bar association that promotes the common professional and business interests of inhouse lawyers who work for corporations, associations and other private sector organisations through information, education, networking opportunities and advocacy initiatives. With more than 30,000 members in more than 75 countries, employed by over 10,000 organisations, ACC connects its members to the people and resources necessary for both personal and professional growth. By in-house counsel for in-house counsel ® For more information, visit www.acc.com In association with:

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