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.