Salaries of Montreal Lawyers: A Reality Check

The context of the last few years has undeniably reshaped the landscape of the legal industry in many ways. As law firms grappled with the challenges of remote work and the need for shifts in operational dynamics, they also could not escape the significant labour shortage and the competition for top talent. In response, many legal departments began offering generous packages to attract new talent, which led to discrepancies in compensation received by newcomers in comparison to that of incumbent lawyers with more seniority, causing feelings of frustration and discontent both in-house teams and sometimes in private practices.

As we enter another era of change, the question arises: will the scales of compensation find their balance? It is possible that as the initial urgency of the pandemic subsides, legal departments may recalibrate their compensation platforms to ensure equity and satisfaction across all levels of tenure. However, it is also conceivable that the pandemic has permanently altered expectations, with legal professionals now holding a different perspective on what a career in law entails, valuing flexibility, work-life balance, and a ‘modern’, more robust salary with customized perks (remote, or even international work arrangements, non-partner track trajectories, etc.). It is also conceivable that in some specific areas of law, like in technology and privacy law, the need for talent due to the growth in demand may contribute to a disparity in compensation as compared to other areas. Together with a candidate’s track record for these specialties, hiring managers should take these matters into consideration when putting together attractive offers.

Although salary increases are forecasted to be more limited in 2024 (3.8% for Quebec and Canada) than they were in 2023 (4.4% in Quebec and 4.3% in Canada), according to the Conseil du patronat du Québec (CPQ), this slight diminution is not likely to affect the expectations of candidates, whose salary expectations continue to be way above the rate of inflation and do not reflect the reality of these projections.

The future compensation landscape in a world that has moved past the pandemic is still evolving. Will it return to more traditional norms, or will it continue towards creative, tailored, flexible work arrangements? Legal managers find themselves adapting to new realities, where experience must be balanced with the changing values and expectations of the legal workforce. As it is still a candidate’s market, it is imperative to understand that coming up with successful, workable and profitable modalities for the attraction, motivation and retention of talent means listening to expectations and being prepared to demonstrate flexibility and fairness. Our advice would also be to ensure that human resource teams benchmark realistic and current salaries to achieve their hiring goals. If unable to meet these metrics, it becomes important to consider other valuable benefits as well. Change remains a challenge, but with the industry’s track record of “smart innovation” and creative solutions, the coming year will inevitably reflect a dynamic response.