Made up?

Spring in the air – and ‘green shoots’ perhaps? While you had to watch your back uttering such ever-so-tentatively hopeful phrases a mere matter of months ago, a slight note of confidence – that elusive beast – suddenly seems to be back in fashion. But, as I’ve said before, a week seems like a long time in business as well as politics these days.

Not that anyone, anywhere, should be getting overexcited. The suggestion in some quarters is not so much that things are getting better as that they are not getting worse quite as quickly as they were. Most notably, commentators have quickly seized on the fact that the output of the UK’s services sector decreased at its slowest rate for eight months in April, with the Chartered Institute of Purchasing and Supply (CIPS)/Markit services PMI activity index rising from 45.5 to 48.7. Analysts had expected it to hit 46.0 at the most.

Of course, this is still below the magic number of 50 that separates contraction from growth, but the statistic is especially significant given that services represent some three-quarters of the UK’s entire economic output. ‘Business expectations’ were consequently taken to their highest level since the previous May – prior to the collapse of Lehman Brothers and the beginning of the recession proper.

These slightly more positive noises were then severely dampened, however, by the Bank of England’s subsequent and unexpected upping of its quantitative easing policy in May. A further £50bn of cash is now set to be ‘printed’ into the economy, reminding us – if that were necessary – that we are still in the grip of a severe, however potentially ‘V-shaped’, downturn.

Law firms’ attempts to negotiate that sharp decrease in business have clearly been dramatic. Redundancies have been widespread, partnerships restructured, salaries frozen, trainees at some have been asked to defer their start dates, other lawyers have been offered sabbaticals, and at least one firm has considered calling on some to work a four-day week for a salary reduction.

All of which somewhat spoils the annual ritual that is the partnership promotions announcement – however green any very small shoots may be. This is the time, traditionally, when firms congratulate themselves on how well they have invested in their lawyers’ careers and skills for the future of those firms. Those chosen for the glory of partnership are held up as the epitome of success in that nurturing process.

At the time of writing, the majority of law firms have decreased the number of lawyers that have been given this bountiful ‘nod’. A handful of exceptions include Eversheds, which has made up 32 partners, almost half in the company commercial practice group, while fellow top-10 firm Lovells has welcomed 19 new partners across a wide range of practices, six based in London.

Meanwhile, litigation City leader Herbert Smith is celebrating the fact that over half of its 13 new partners are women.

This is good news for them naturally – but possibly also encouraging for Leader of the House of Commons Harriet Harman. The long-awaited Equalities Bill – now to be debated in the House of Commons – would effectively permit ‘positive action’ to address workforce gender imbalance where candidates for a post are equally qualified. The law has long struggled with this issue, particularly at senior levels.

But then, I was also recently struck by a study carried out at the University of Warwick in the UK. Following any promotion at all, 1,000 people polled reported a 20 per cent reduction in their number of visits to the doctor.

Taken alongside an average ten per cent increase in mental strain, promotion is actually bad for your health, the research concluded – if not for your wealth!

Richard Brent

Editor

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