Be very strategic and deliberate if your firm plans to grow through lateral hiring at the partner level, because you can’t afford to make mistakes! Consider these findings:
- 75% of managing partners expect lateral hiring at the partner level to increase over the next five years, according to a recent LexisNexis/American Lawyer Media survey.
- 28% of them say that lateral hiring has not been a very effective growth strategy for their firms, according to the same survey.
- 40% of lateral hires don’t work out says another study conducted by the Citi Private Bank Firm Group. Smock Consultants says that 75% of laterals don’t work out.
- $600,000 is the estimated direct and indirect expense associated with hiring a lateral partner.
Our advice? Conduct thorough due diligence on the front end to make sure you’re bringing in the right people and, as you do, make sure they’re fully integrated into your firm and its culture. This article dispenses some great guidance.