Exclusive: Firm stresses final figures still to be finalised
Bryan Cave Leighton Paisner (BCLP) looks set to record an uncharacteristically low spring trainee retention rate.
Legal Cheek understands the firm’s spring 2024 score was feared to be as low as 21% (3 out of 14) at one stage, but is now more likely to be 36% (5 out of 14) — or higher — as the firm opens opportunities for additional newly qualified (NQ) roles.
Those to secure NQ roles so far will qualify into the firm’s real estate finance and mergers and acquisitions teams.
A firm spokesperson stressed the process is still ongoing and the exact number of positions and offers has yet to be finalised. They also said the firm hoped to extend further offers and will continue to support its qualifiers throughout their last seat.
Historically, BCLP is a relatively solid performer when it comes to retention rates. The firm chalked up a spring 2022 score of 72% with 13 of its 18 trainees staying put on that occasion, while in spring 2021 the firm kept 14 out of 16, or 88%.
The Legal Cheek Firms Most List 2024 shows the firm recruits around 35 trainees each year, split across two intakes.
Commenting on the forthcoming spring score, the firm spokesperson told Legal Cheek:
“Our focus is to provide all our trainees with the assistance and the support they need to succeed in their legal careers. The number of NQ positions we offer varies from year to year, subject to the needs of the business and market conditions. This year, the number of offered seats is unfortunately lower than the number of trainees. To mitigate this, we have implemented several layers of support to the qualifying intake. We have offered early access to outplacement support, one-to-one interviewing assessments, coaching through our learning & development team, and introductions to our recommended recruitment agencies, as well as ongoing wellbeing support.”
They added: “Our qualification process remains in progress as we work to find as many roles as possible for our people. While the exact number of positions and offers has not been finalised, we do expect a notably lower retention rate than we’ve seen historically at this point in time, under 40%. Looking ahead, we hope to extend further offers and will continue to support our qualifiers throughout their last seat and beyond.”
News of the impending score comes in the same month that newly-published accounts revealed that the firm’s UK arm saw its profit before tax fall from £78 million to £29 million. The figures — which cover the year to 31 December 2022 — also show revenue dropped by 11% to £204 million.
The firm attributed much of the revenue loss to its withdrawal from Russia in April 2022, as well as wage inflation and firm investments.
“Globally, in 2022 we delivered a resilient performance thanks to the balance of our global platform, strong sector mandates along with our strength in litigation, and strategic counsel for long-time clients,” a firm spokesperson said. “Excluding the closure of Moscow and adjusting revenue on a constant currency basis, BCLP’s business grew by 2% in 2022 and the firm had its second-best year for profitability.”
The commercial real estate sector — one of BCLP’s key specialisms — has come under particular pressure as a result of the current economic headwinds.
Last week it emerged that City outfit Fladgate had asked associates with its real estate team to work a four day week for four days’ pay. It has been reported that lawyers have until 22 December to confirm whether they will accept the new set-up. Fladgate has been approached for comment.
Last month, meanwhile, Legal Cheek reported Trowers & Hamlins had launched a second redundancy consultation within its UK real estate team amid what it described as a “continued slowdown in market conditions”.
Update: Tuesday, 27 February
BCLP has confirmed its spring 2024 retention is currently 29% (4 out of 14). In an update to the firm’s earlier statement, a spokesperson said: “In these exceptional circumstances, our priority is assisting the remaining trainees to land roles, and we have ramped up our outplacement support efforts. All individuals are currently in interview processes, with most trainees not being retained having already received offers from other firms.”