October 11, 2005
Lateral Hiring of Associates by Law Firms
Laterals at the associate level are a two-edged sword. For the firm being exited, they represent a lost investment. Just at the point that the associate becomes profitable, they move on to greener grass. Hiring a lateral is bringing in to the firm a potential insurgent, at a minimum an interloper. They arrive from a different law firm culture. Their assimilation is a different problem from that of growing your own talent by recruiting directly from law schools.
A NALP Foundation survey looked into the issue of why laterals leave and what may make them stay. NALP is the National Association for Law Placement. You can view the Executive Summary on www.nalpfoundation.org and purchase the survey for $195.00.
Perhaps the most important insight gained from the study is that there is a large segment of the talent pool that is no longer married to the concept of becoming a partner. With the demise of partnership as a goal, this labor pool is more interested in shorter hours and salaried compensation. The primary factors driving associates to make job changes were:
- Professional development
- Practice interests
- Financial incentives
- Workplace environment
- Work/life balance
The study indicates that laterals are generally satisfied with their move to the new law firm and hold an expectation of remaining with their firm.
Mega firm migration to mid-sized and small firms has usually been considered as work/life balance driven. The NALP study appears to debunk that belief. Only 25% of associates said work/life balance was an important factor in their decision to change jobs. The number one reason given was professional development. The average was 75% but those moving out of law firms with more than 500 timekeepers sighted professional development as the reason 84% of the time.
One has to conclude that recruiting firms should place professional development programs and self-development opportunities high on their list of benefits when courting laterals.
Active programs to assimilate laterals into the new firm’s culture, though not addressed in the Executive Summary, are essential for lateral hiring to succeed in a law firm. Without timely and effective assimilation, the introduction of new laterals can be disruptive and divisive at both the professional and staff level. Assimilation starts with the interview process. The lateral should understand that assimilation is expected. Laterals should meet with as many existing associates and partners as practical during the interview process. They should be encouraged to ask about the working environment of the law firm. To effectively communicate with lateral candidates, the firm needs to understand its own culture, common beliefs, performance standards, quality standards and job prerequisites. For example, if your firm makes no exceptions when it comes to reporting billable time on time, the lateral needs to know that before they become a member of the law firm’s team. Nothing is as damaging to your own culture as a lateral who winks at required procedures and standards others have been expected to follow.
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Filed under HR by Tom Collins