The Surge in Lateral Hiring
The legal industry is experiencing a significant shift as senior partners retire, creating a surge in lateral hiring. This trend, often referred to as the “big retire,” has law firms strategically seeking lateral hires to fill gaps left by departing senior partners.
Firms are particularly interested in candidates with portable books of business, relevant expertise, and stable career paths. A portable book of business is a transferable client base, crucial for a lateral hire’s success, though its value can vary due to differences in hourly rates between firms.
Attorneys, too, see lateral moves as opportunities for growth and better support systems. However, success hinges on aligning expectations between firms and attorneys, ensuring mutual benefits and smooth transitions.
Key Factors for a Successful Lateral Move
While the demand for lateral hires is on the rise, the success of these moves depends on several critical factors from both the firm’s and the attorney’s perspectives.
What Firms Look For
Law firms evaluating lateral candidates prioritize three main criteria:
- Portable Book of Business: A strong, transferable client base is essential. Firms assess whether the attorney’s clients will transition seamlessly and whether the financial terms, such as hourly rates, align with the firm’s structure.
- Experience and Stability: Firms favor candidates with a stable career trajectory and expertise that aligns with the firm’s strategic goals. A history of frequent job changes can raise concerns about long-term commitment.
- Resources and Support: Firms must ensure they can provide the necessary infrastructure, marketing support, and team collaboration to help lateral hires grow their practice and retain clients.
What Attorneys Seek
Attorneys considering a lateral move also have specific expectations:
- Autonomy: Many attorneys value independence in managing their practice or having a voice in firm decisions. Misaligned expectations around autonomy can lead to dissatisfaction.
- Access to Resources: Attorneys expect firms to actively support practice development, whether through hiring associates, expanding networks, or investing in business development initiatives.
- Compensation Alignment: Competitive compensation is crucial, but the structure of rewards, such as credit for origination, also plays a significant role in decision-making.
Preparation is Key
Both firms and attorneys must prepare thoroughly to ensure a successful transition:
- Understanding the Fit: Firms must assess whether the attorney’s values, work style, and long-term goals align with the firm’s culture and strategic direction. Similarly, attorneys should evaluate whether the firm’s values and practices match their career aspirations.
- Clear Expectations: Open and honest communication about goals, resources, and expectations is vital. Miscommunication can lead to mismatches and dissatisfaction down the line.
- Evaluating Stability: Both parties benefit from minimizing risks associated with frequent moves or misaligned expectations. A well-planned transition ensures stability and long-term success.
Final Insights
A successful lateral move requires a careful balance of strategic goals and personal aspirations. Firms must invest in structured processes to attract and integrate lateral hires effectively, while attorneys need to continuously evaluate their career priorities and make decisions aligned with their long-term goals. Both sides must strive for alignment in values, support systems, and expectations to ensure these transitions are truly beneficial.
Conclusion
The surge in lateral hiring is reshaping the legal industry, driven by the retirement of senior partners and the strategic needs of law firms. Both firms and attorneys have opportunities to benefit from these transitions, but success depends on alignment of expectations, values, and goals. A portable book of business, stable career trajectories, and access to resources are critical factors for firms and attorneys alike. By prioritizing preparation, communication, and cultural fit, all parties can navigate this evolving landscape effectively, ensuring long-term success and mutual growth.
Frequently Asked Questions
Why is lateral hiring on the rise in the legal industry?
Lateral hiring is increasing due to the retirement of senior partners, creating gaps that firms need to fill. Additionally, firms are seeking attorneys with portable books of business and specialized expertise to maintain competitiveness.
What do law firms look for in lateral candidates?
Firms prioritize a portable book of business, relevant experience, and career stability. They also assess whether the attorney’s values align with the firm’s culture and strategic goals.
What do attorneys seek when considering a lateral move?
Attorneys look for autonomy, access to resources, and compensation structures that align with their goals. They also evaluate the firm’s support systems and cultural fit.
How can firms ensure successful lateral hires?
Firms should provide clear communication, robust support systems, and a structured integration process. Ensuring alignment in expectations and values is critical for long-term success.
What makes a lateral move successful for attorneys?
Success hinges on aligning personal career goals with the firm’s strategic direction, maintaining open communication, and ensuring access to necessary resources and support.
