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.

Do these numbers ring true for your organization?