March 27, 2006
Practice Interest; the other major reason for lateral moves of attorneys
Previous posts have already identified that disappointment in self-development tops the list of reasons for lateral moves. But there are other important motives.
The second strongest reason for lateral moves is the practice interest of the attorney. This reason is probably supported by financial interest. At risk are the attorneys who are rising stars in a particular practice area. These attorneys are the major force behind a growing practice area. They are the reason clients are joining and staying with their current firm. They often feel that, given the business they are generating and are responsible for, they are not receiving the appropriate recognition or compensation.
These practice area stars, both current partners and senior associates, are likely targets for the firm that is strategically interested in entering or expanding the area. They are the same attorneys that are most likely to walk out of their existing firm’s door with a good measure to the business.
They are an opportunity for other firms and their potential loss is a risk to their current firm. They are an example of the need for managing partners and the senior leaders of the firm to engage in active evaluation and communication with their partners. This includes assessing their satisfaction and dissatisfactions with their place in the firm. It means having fair compensation systems and appropriate recognition and compensation for those responsible for generating business and maintaining client relationships. It also illustrates the risk of having a “one attorney/one client relationship”. Many firms double up—having a partner other than the responsible attorney meet regularly with the client for feedback. Doing so demonstrates through action the depth of the organizational strength provided by the law firm.
Of course, from the recruiting firm’s standpoint, the mission is to take advantage of the exiting law firm’s failure to exercise best practices in retaining its star performers. A major concern of the recruiting firm should be the issue of possible dilution of existing partners’ earnings. Will the addition of the lateral be a positive contribution to the firm rather than dilute the interest of existing firm members? Make sure that the book of business expected to follow the lateral is not overestimated. Make sure that the candidate fully understands and accepts as fair the new compensation system of his new home firm. No matter how good this addition looks, the firm should not forgo its customary selection procedure and due diligence steps. If it is too good to be true, it usually is.
Morepartnerincome.com is sponsored by Juris, Inc. For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com.
Related posts
Filed under HR by Tom Collins