Business Opportunities

In today's legal marketplace, making a lateral move—whether to a new firm, an in-house role, a public interest group or into government—is increasingly commonplace. We would venture to guess that

the majority of young lawyers make at least one lateral move, if not more, in their first 10 years of practice. The American Lawyer has reported that over 2,000 partners at large law firms are switching firms every year. While this number pertains only to partners at major national firms, it's clear that partners and associates alike are on the move. Whether and when to make a lateral move, however, can be a difficult decision, particularly for young lawyers.

Most often, young lawyers are motivated to make a lateral move because of personal or professional dissatisfaction in their current role, or some combination of both. In some cases, it is pretty clear that a lateral move is likely to resolve that dissatisfaction. If you want to switch from corporate work to litigation (or vice versa) and that opportunity is only available through a lateral move, then a lateral move is probably the right step for you. More often than not, however, it is much less clear whether a lateral move will resolve the personal or professional dissatisfaction a young lawyer is experiencing in their current role. The grass may not be greener on the other side.

In such situations, it is essential for a young lawyer to take stock of not just the dissatisfaction they are experiencing, but the root causes of professional discontent or restlessness. If you are investigating a lateral move to achieve greater work-life balance, what does that look like to you? If your work-life expectations are not compatible with billing 2,000-plus hours per year (and that is no crime), making a switch from one law firm to another might not be the right answer, even if it gives you a reprieve from your current workload. Likewise, if you are thinking of a lateral move to get more substantive experience or client-facing work, thoughtfully consider what comes along with those responsibilities, such as client requests in the evenings and on weekends and the stress associated with being the lead lawyer on a matter, particularly early in your career.

These examples are not meant to discourage making a lateral move for either of those very legitimate reasons. Instead, they are intended only to point out that the first step to a successful lateral move is taking the time to think introspectively and consider what is causing your current dissatisfaction and whether a lateral move will eliminate its causes, not just in the short term but also over the long term. The grass almost always looks greener from your office window while you're working on a Saturday for the third weekend in a row, but a lateral move can quickly lead to disappointment if young lawyers are not thinking clearly.

While there are many reasons a lawyer may want to leave their current firm, one common problem is that associates can get squeezed between their firm's rate structure and their clients' hesitance to pay higher fees. A young associate at a larger firm might not feel challenged enough in their current environment. A partner whose ideas aren't being received at their present firm may long for a firm where their opinion is more highly valued. Attorneys will often look to make a lateral move due to significant structural changes. While they once felt they were on the fast track to partner, they believe that opportunity is no longer available to them.

A lateral move is not a catch-all solution to every issue, but it can be a step in the right direction for many young attorneys. The associate whose firm's high fees are dampening his relationship with his clients may be a desirable candidate for a firm with less aggressive billing practices—or a smaller firm with the ability to charge lower rates. The young attorney who is not challenged at her large firm might opt for a pay cut at a smaller firm and be rewarded with more hands-on time with her clients. An attorney with a modest book of business who feels stuck at their current firm might find they are a lucrative option for a firm across town. It's important to consider one's reasons for a lateral move, however, as a potential employer will not graciously accept every idea.

One red flag for employers is an associate moving firms because they're not getting enough work, despite working in a busy practice group. Employers may view this as a sign that your work is not of good quality, you're not proactive enough, or that your firm's partners do not like you. While relocation to be closer to one's family is a perfectly acceptable reason for a lateral move, many firms would spot red flags in an attorney looking to relocate for a change of scenery or for "better weather." Both of these reasons raise suspicions that one might not be a stable employee.

Young attorneys should be wary of making several lateral moves in a short period of time. Young attorneys at a large firm could be conflating short-term discomfort with career stagnation and may want to re-examine their long-term options before jumping ship. The time of year may also affect the success of one's lateral move. Researchers have observed a 15-point drop between the five-year retention rates of lateral moves made in the first half of the year and moves made in the fourth quarter. Another surprising figure regarding lateral moves is that the success of the move is directly affected by the new firm's profits per partner. Studies show that the lowest retention rates of lateral movers happen when the partner moves to a firm that is 20 or more places lower in profit rankings than their previous firm. Higher long-term retention rates occur when a partner climbs to a new firm that is 40 or more spots higher.

Despite these concerns, a lateral move may be a good idea, especially at the mid-to-senior associate levels. An ­associate may recognize after one to two years of practice that, due to the existing legal department structure or the partners for whom they work, they will be unable to devote a large portion of their time to the area of law that is their passion or in which they would like to develop an expertise. This could occur because their firm is invested in certain types of cases and clients. It may make sense for the associate to speak with a recruiter to understand which firms in their market may have recently invested in a lateral partner specializing in the area of the law of interest to the associate, or the recruiter may know whether another law firm partner has a large book of business in a particular specialty. For the associate to specialize during crucial midlevel years, the associate should consider a lateral move before they become labeled as an attorney with another expertise. It is difficult to carve out a new specialty and sell that specialty to clients and other law firms when an attorney's first few years of practice have not been devoted to it.

There are numerous reasons why a lateral move may be prudent for an associate. An associate may have a satisfactory experience practicing law at a particular firm but realize that the partner whom they support does not have political goodwill at the firm or does not get along with the firm's leadership and other partners. That dynamic could harm the associate's career, so the best option may be to leave the firm. If an associate has expertise in a specialty area, and a law firm seeks to enhance its practice in that area, an associate at the senior associate level may have the opportunity to take on a leadership role and secure support for partnership at a firm even after working at that firm for a short period of time.

A lateral move can be a difference maker in a young attorney's career. It can mean more hands-on time with clients, better compensation and a more direct path to becoming a partner. Considering one's reasons for leaving is essential, as moving too often can make an attorney appear unstable in the eyes of a firm. A young attorney may want to speak with a recruiter or career coach with experience in the legal field to discuss the root of their dissatisfaction, options in the market and busy practice areas. Also, young attorneys should consider seeking out the advice of trusted, experienced mentors in the field to discuss potential career moves. Partners looking to make lateral moves should consider the timing of their move, and the profit ranking of the firm they are seeking to join. Whether you are a first-year attorney or a partner in your 50s, a lateral move could be the right option for you to advance your career, but it deserves careful consideration. Like with many aspects of life, timing is everything.

The views expressed here are personal to the authors and do not represent the opinions of their employers.