lateral hire stats.

Lateral hiring/movement is the norm among larger law firms…
  • 3,000 annual lateral partner moves between AmLaw200 firms- an average of 15 partners per firm per year!
  • 96% of firms believe that lateral hiring is their most effective growth strategy
  • Nearly 20% of AmLaw200 partners make some type of professional transition EACH year
  • 92% of law firms believe there needs to be greater candidate transparency 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
  • 48% of lateral partners leave within 5 years
  • Of those laterals who do stay, nearly 50% fail to breakeven within 5 years
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
The need for transparency in the hiring process:
  • 56% of law firms would like more information on a candidates’ personal conduct (social media)
  • 86% of law firms would like more information on a candidates’ professional relationships
  • 92% of law firms would like more information on a candidates’ practice

Do these numbers ring true for your organization?

CONTACT US