A&O exceeds NQ retention rate expectations
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Allen & Overy (A&O) has come forward as the first magic circle firm to confirm its newly qualified (NQ) retention rates for March 2010.
The law firm has reported a retention rate of 87 per cent after offering jobs to 55 out of the 63 trainees who applied for positions upon qualification. However, if the three trainees that dropped out of the qualification process are included then A&O’s retention rate is a less healthy 83 per cent.
A&O managed to keep on more NQs than first expected after it warned trainee solicitors last year that it would only be keeping on around 70 per cent of its March 2010 qualifiers.
But 83 per cent is a far cry from Spring 2009’s results when A&O boasted a 91 per cent retention rate, with 51 out of 57 trainees being offered newly qualified positions.
Slaughter and May, meanwhile, confirmed an 87.5 per cent retention rate for March 2010 qualifiers, offering 21 out of 24 trainees jobs with the firm. In March 2009 it retained a healthier 96 per cent.
Elsewhere, Herbert Smith has managed a 82 per cent retention rate with 26 out of 32 trainees being offered jobs. This is slightly down on March 2009 when it achieved an 86 per cent retention rate.
The first firm to come forward with its March retention rates was Baker & McKenzie, offering jobs to 93 per cent of its trainees.
The global law firm handed jobs to 14 out of 15 of its March 2010 qualifiers. The result beats the firm’s March 2009 NQ retention rate when it only achieved 80 per cent.
Readers' comments (9)
Anonymous | 8-Jan-2010 3:07 pm
I hardly think 87% is "a far cry from Spring 2009’s results when it boasted a 91 per cent retention rate". 4% is not a "far cry" and the comment is pure hyperbole.
Perhaps more of note is Slaughters' retention rates. Understandably A&O will not be retaining 100% as its core areas have been affected by the downturn, yet Slaughters apparently had one of its best years ever last year. It baffles me why a firm that is consistently doing well feels the need to cut NQ salaries and decrease retention rates.
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Will | 8-Jan-2010 4:33 pm
How is 87 per cent a "far cry" from 91 per cent?
Sounds more like a rounding error to me.
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Failure | 8-Jan-2010 5:07 pm
Anonymous, Slaughters may not be retaining all trainees because those three who didn't get contracts didn't cut the mustards or did perform well enough. It should never be taken for granted that a trainee will automaticall be given a job on qualification no matter where we sit in the economic cycle.
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A&O Trainee | 8-Jan-2010 5:34 pm
"55 out of the 63 trainees who applied". Factor in the 7 trainees who did not apply (four of which were given the hard push and told it would be a waste of time as they had no chance). Suddenly the figure isnt so high.
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Anonymous | 9-Jan-2010 9:51 am
This article is misleading at best. 55 out of 70 trainees means a retention rate of 79% which is pretty rubbish.
But 79% is indeed a far cry from 91% (assuming 91% is an accurate reflection of the retention rate for Spring 2009).
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F Gill | 9-Jan-2010 3:34 pm
Re:Anonymous | 8-Jan-2010 3:07 pm
What a turnip. They cut NQ salaries because they can. Everybody across every market is dropping salaries to keep the profit margins the same as they have always been.
Its solid economics if you ask me
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IHateBPP | 11-Jan-2010 8:45 am
"Allen & Overy (A&O) has come forward as the first magic firm to confirm its newly qualified (NQ) retention rates for March 2010."
I assume that was meant to read 'magic circle'. If not, A and O might be showing off their new business as a magic firm by making eight trainees vanish.
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Dazed and confused | 12-Jan-2010 11:00 am
I think this is promising news for us. I think anyone with a training contract now should be thanking their lucky stars that they have one and will get to qualify. Spare a thought for those who have shelled out thousands and thousands of pounds and are still not qualified lawyers.
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Anonymous | 13-Jan-2010 0:45 am
My girlfriend is at Links and they're hemorrhaging trainees. So far 20 out of an intake of 70 have ben told they're surplus to requirements.
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