lateral hire stats
The legal market’s sluggish demand growth has driven increased competition for lateral talent to unprecedented levels. While the opportunities for firm growth through the lateral partner markets are large, sky-high acquisition costs and low success rates make lateral hiring a risky endeavor. View printable pdf.
Lateral partnerare high
Many factors contribute to increased lateral partner failure rates. Failed laterals may become apparent immediately, while others may only be realized years later. The steep failure rates indicate that firms are not realizing expected returns on their lateral hire investments.
of laterals leave their new firm within 5 years.
of laterals fail to bring their promised book of business.
of laterals fail to fit in at their new firm.
Cost ofa failed lateral partner is massive
The total cost of a failed lateral is large and growing. Each required replacement lateral forces the firm to expend even more money for recruitment, onboarding and compensation. With each failed lateral, the likelihood of recouping these additional costs lessens.
Lateral partner hires drive
Lateral partner hires represent the single largest source of revenue growth potential for law firms, creating opportunities to offer new services, develop new clients, expand into new markets and add new books of business.