lateral hire stats.

Lateral hiring/movement is the norm among larger law firms…

• 4,000 annual lateral partner moves between AmLaw200 firms. That’s an average of 20 partners PER FIRM PER YEAR!
• 96% of firms believe that lateral hiring is their most effective growth strategy
• Nearly 1/5 of AmLaw100 partners move EACH year.
• 92% of law firms believe there needs to be greater transparency by the candidate throughout the hiring process

 …but lateral partner success metrics paint a bleak and startling picture.

• 75% of lateral partner hires FAIL
• 90% of laterals have trouble generating business at their new firm
• 33% of laterals won’t produce even half of their stated book of business

The total cost of failed laterals is large and growing:

• The cost of replacing a failed lateral is between 200 and 400% of the lateral’s first year compensation.
• The acquisition cost of EACH lateral hire is between $2.3 and $4.2M
• The largest 400 U.S. law firms lose $9.1 billion every year due to failed laterals.

Malpractice and conflicts issues due to lateral hires are troubling, frequent and expensive:

• 1/3 of AmLaw200 firms encounter client conflict problems.
• More than 35% of firms experience a malpractice issue arising from a lateral partner.
• The average loss (in paid claims) is 8X more for a lateral than for an incumbent partner.