Working in a US firm
Moving to a US firm is possibly one of the most exciting career moves that a UK assistant could make. It is also likely to involve one of the toughest career decisions that any assistant could make. Lack of knowledge about what such a move would involve and about the range of different firms that you could possibly move to will only make such a decision even tougher. This guide is designed to give you an introduction to working in a US firm and to answer some of the most commonly asked questions.
Culture
There are a number of myths and misconceptions about what it is like to work at the London office of a US firm. Most of the clichés about US firms being aggressive and unpleasant places to work are precisely that – clichés. That said there are some notable differences when it comes to the working environment.
UK lawyers who have moved to US firms commonly say that the environment is much less hierarchical than in the UK firm they came from. This flatter structure may be a product of the fact that a number of the US firms here are relatively small in size. This smaller office environment should also prompt you to think carefully about how well you will be able to get on with the people you will be working with. Naturally in a smaller office you will have fewer colleagues and so liking and respecting them potentially becomes more important than in a larger firm where it tends to be easier to accommodate a broader range of personality types.
In terms of the work culture, it is common for US lawyers to have a far less specialist approach than their UK counterparts. As a consequence you may well find yourself doing a broader variety of work than you are used to and so a positive attitude and a willingness to ‘have a go’ will serve you well.
Job security
Are the US firms here to stay? A few years ago it was common to see commentary speculating that at the first sign of a down-turn the US firms here in London would pack their bags and go home. So far the doubters have been proved wrong and only a very small minority of US firms in London have not be successful. Even during the recent down-turn the London offices of US firms were no more likely than UK firms to suffer difficulties and close their doors for business.
The range of US firms in London does of course mean that job security can vary from firm to firm. If you are naturally a more risk-averse individual you will probably want to look at the well-established firms with big brand names and an experienced and stable London management team. On the other hand, if you are looking for a more exciting and entrepreneurial environment, you might consider a newer entrant to the market where the risks might be slightly higher but arguably, the rewards, in terms of career advancement opportunities, might be greater. Whatever option suits you, the key requirement is that the firm should have a focused strategy in London and a strong strategic commitment from the States.
Practice areas
So what are all these US firms actually doing here? The majority of them opened their doors with a focus on corporate or finance work. Practice areas they have tended to focus on are corporate finance, capital markets, securitisation, structured finance and project finance. Over the last few years many of these firms have diversified adding practices in litigation/arbitration and property/property finance. There are also a substantial number of US firms here focusing on the technology, life sciences, IP and telecoms sectors.
A more recent development is the rise of the "full service" US firm. Whereas it used to be common for US firms to outsource work which required specialist input, this is now changing as well. Lawyers with experience in tax, employment, employee benefits, pensions and competition are also finding their services in demand from this quarter.
Career development / prospects
It is gradually becoming more common for US firms to make up UK associates to their partnerships. Naturally, in the early stages of development these firms tended to rely on laterally hiring existing partners from UK firms. However, as they have grown organically and assistants they recruited three or four years ago have become eligible for partnership, increasingly they have started to promote from within their ranks. This is a trend that we expect to continue.
Support and training
A common concern that junior lawyers have about moving to a US firm is that they will not receive the same level of training and support that they have become accustomed to in their UK firm. Undeniably, in a smaller office environment the formal support structure is likely to be less well developed. However many assistants who have made the move to a US firm say that the opportunities they have to work with partners, under their direct tutelage, more than compensates for any lack of structured training.
In addition, in the last year, we have seen a dramatic increase in the number of US firms employing professional support lawyers. As these firms reach a certain size it becomes economical for them to have a dedicated support function within the London office, rather than relying on resources from the States. This trend is likely to make a big impact on the level of formal support junior associates enjoy and should go a long way to alleviating any concerns.
Hours
One of the commonly held misconceptions about working at a US firm is that you will be there all hours of the day and night and every weekend. It is true that hours targets (typically between 1800 and 2000 hours a year) are higher than in UK firms but you have to take into account that US firms tend to bill much more aggressively than their UK counterparts. The result is that working the same number of hours in the office as you were used to in a top City firm will result in more actual billed hours in a US firm.
There are also an increasing number of US firms who now operate their London offices in accordance with UK norms, where hours targets are closer to the 1700 hours a year you may be used to. Typically these firms pay what we call "Mid-Atlantic" rates (see the section on Remuneration for more detail) that are lower than the full US rates you could expect to earn in firms that have higher billable targets.
Remuneration
When it comes to remuneration US firms divide broadly between those paying full US rates here and those paying Mid-Atlantic rates. If the exchange rate is particularly favourable, NQs can earn anywhere up to £96,670 plus bonus. Firms paying Mid-Atlantic rates typically offer salaries which are approximately 15% above Magic Circle rates so NQ salaries in these firms start at £75,000. One common feature between both pay structures is that the vast majority of US firms operate a "spot" salary system, i.e. all assistants in each year group are paid the same rate no matter what their practice area. This differs to the more typical UK system where salary bands are the norm.
Also to be factored in is the effect of bonuses on total remuneration. Most US firms pay bonuses to their assistants as long as they achieve their individual billable hours target. The size of the bonus usually increases the more senior you are. Typical bonuses in a boom year can be as high 30% of base salary but clearly tougher business conditions will affect the level of bonus. Some US firms do not specify bonus figures at the beginning of the year, but instead award bonuses on the basis of the firm’s financial performance during the year.
Benefits / holiday entitlement
Traditionally, US firms paying full US rates have not provided much in the way of additional benefits. However, over the last year or so, fierce competition for the best lawyers has meant that firms are increasingly looking to offer the benefits that are important to these candidates. This has meant introducing pension schemes comparable to the City firms, and other benefits including health insurance and life insurance. Holiday entitlement, however, still tends to be capped at 20 days a year at the New York firms paying premium salaries.
Conclusion
US firms remain an extremely attractive proposition for lawyers looking to develop their careers. At Hays Legal we act for a huge range of US firms in London and are uniquely well placed to assist you.
Contact us
If you are attracted by the idea of joining a US firm and would like to have a more detailed discussion about specific firms and what they can offer get in touch with our specialist consultants.
Vivienne Stephen, Business Manager
t: 020 7523 3686
e:vivienne.stephen@hays.com
