There could be more reason for talented lawyers to consider moving over to a mid-tier firm as evidence grows that salary reviews are likely to be more generous than at top-tier international firms. The trend was recently identified by recruiter Robert Half Legal in relation to the US market, where it was found that mid-sized practices are planning to increase salaries by as much as 4.1%, compared to 1-1.3% at top-tier international firms in 2011.

Now the trend appears to have reached Hong Kong as mid-sized and smaller firms expand at a rapid rate. At least three of the major recruiters confirmed to ALB that mid-sized firms have increased their efforts to retain talented lawyers and Ricky Mui, manager of the Hong Kong legal division for Robert Walters, said he has seen a definite increase in firms making lateral hires.

Representatives from the larger US firms with operations in Hong Kong would not confirm whether they are also raising salaries in line with the results of the survey, however one top-tier US firm did state that due to the level of competition arising in the area and with so much new talent arriving, firms would have to make sure they keep their rates competitive.

One boutique Australian firm operating in Hong Kong has confirmed that it increased its salary offering in the hopes of attracting top talent from the bigger international firms. While this has yet to prove successful, the strategy suggests that those types of firms may become more attractive to lawyers who have been frustrated at their progress through one of the larger firms.

There are various reasons why a mid-tier firm could be attractive career prospect. Mui said that medium sized firms are hiring lawyers who have reached a ceiling in their career at an international firm or who are looking for a better work-life balance. Talented lawyers already working at mid-sized firms have also been offered higher salary increments to stop them being tempted to stray when they receive offers from larger firms, according to Mui. “Whereas they would have held back on offering such high increments, these growing mid-tier forms do not want to lose their competitive edge so are deciding to do what is necessary to retain the talent they have,” said Mui.

In areas such as employment and litigation and especially corporate, Mui said that firms are having success because they are able to offer a faster route to partnership and the promise that lawyers won’t be pigeon-holed into a particular type of transaction, as has been happening with Hong Kong IPO listings. “In particular, corporate lawyers who have worked for larger firms tend to be focused on corporate IPO activity without exposure to other areas. Mid-tier firms can offer a broader range of corporate M&A, IPO and general commercial experience which is much more appealing,” said Mui.