Lateral hiring continues to boom, and although it's a crowded market, the appetite to utilize lateral hiring as a means to increase revenue and achieve strategic goals is strong. According to the recent ALM Intelligence-Decipher Lateral Partner Hiring Survey, 9,000 lateral partner moves occurred between 2014 through 2018 in Am Law 200 firms. Another recent survey revealed that nearly all firms surveyed said they would continue to pursue lateral hiring as a growth strategy, with two-thirds noting further that they would also seek to acquire lateral groups.

Burns White is no exception. As a first-generation law firm, our growth and success relies, in part, on lateral recruiting as a central strategy. In the past four plus years, Burns White has grown approximately 5% through lateral partner acquisitions. While we don't presume to have the perfect process, we have learned a few things over the years. History has taught us to focus on strategy, transparency and support.

Is the Hire Strategic?

At first glance, hiring laterally seems like an easy way to add talent or expand a firm's geographic footprint, but it's important for firms to do their due diligence. The decision to hire laterally should result from the identification of a specific need or opportunity, and confirmed either through client discussion and/or market research that includes:

• Defining your business case and developing a realistic candidate profile to help jump start your search
• Engaging clients in this process who can offer recommendations and/or assist with introductions

This exercise will help you to prioritize candidates based on your firm's—and clients'—needs. Listening to our clients and identifying opportunities has driven our search for lateral candidates in specific geographic and practice areas to grow strategically.

Is the Process Transparent?

Trust and credibility are fundamental to any recruiting strategy. Both sides should be clear about expectations to avoid disappointment, shape a positive candidate experience, and contribute to a higher rate of long-term retention.

Having a substantial book of business tends to attract most firms to hire laterally, but beware. At Burns White, we've learned that almost no lateral partner brings everything he or she promises, and the research supports this. A recent survey conducted by ALM Intelligence found that 64% of laterals underperform expectations. Because not all clients are portable, it is important to understand a lateral's client relationships and business development skills prior to the hire, and thoroughly explore the candidate's revenue potential.

Vetting more than a candidate's billables is critical; many lawyers bill a lot of hours. WIP and collection percentages are important, as is having more than a single, significant client. Share your analysis and due diligence findings with the candidate so he or she knows what is being considered throughout the process.

Transparency should include on-going candid discussions. Every firm struggles with what to reveal, and your discussion with each lateral hire will vary depending on the level of the hire and his or her concerns and interests. Discussions may include:

• Decision-making processes from the top down
• Access to data related to billable hours, revenue, profit, budgets, etc.
• Billing practices
• Specific business development and marketing expectations
• A formal evaluation process for laterals and how it is managed
• Any special needs and/or accommodations that will be required for incoming clients

Be honest. Addressing these topics on the front end can alleviate a lot of stress for candidates, as well as clients, who will be joining the firm. For example, a recent lateral hire revealed that a client used to doing business with a smaller firm was concerned about billing practices once the attorney transferred to Burns White. These concerns were addressed to help ensure a smooth transition.

Candid conversations also benefit the firm and can reduce risk. In another example, a lateral hire's business model was inconsistent with the firm's existing practices. By understanding the specific needs of the lateral hire, as well as the attorney's client base, we were able to eliminate confusion before the attorney joined the firm.

Transparent, honest dialogue is vital for all parties when considering a lateral hire. Ask the right questions. Share the right information. It's essential for success.

Is the Culture Supportive of Lateral Hires?

At a firm the size of Burns White, cultural alignment is critical when it comes to successful lateral hiring. Every organization has a unique culture defined by its values, expectations and processes. Oftentimes, this culture has been cultivated over time through careful and deliberate effort. Therefore, it is essential to evaluate a candidate and her needs within the context of an existing culture. Consideration should be given to a potential hire's work style and the size of the firm from which she is coming. These factors should be incorporated into the hiring and onboarding processes to ensure the greatest chance for success with the lowest possible risk to the firm and its stakeholders.

In addition, a plan to integrate the lateral hire across the firm is extremely important to increase long-term success and retention. What can you do to facilitate successful integration? We have found success by:

• Assigning a firm mentor as a primary point of contact to address the new lateral hire's concerns and answer questions
• Marketing him internally to educate existing lawyers about capabilities and synergies
• Marketing him externally to existing and potential clients
• Notifying the lateral hire's existing clients of the move to our firm
• Leveraging local and industry publications to announce new firm hires

Even with the best plan in place, not all lateral hires stay. Burns White gives a lot of thought to our environment, and based on past lateral hires, knows that the transition to a new firm can be hard for some. We have had laterals struggle with billing hygiene, leveraging the talents of other attorneys, and adhering to firm policies. The transition can be difficult, and our onboarding approach is agile to ensure a seamless transition.

Conclusion

Lateral hiring is too important and too expensive to get wrong. Recent estimates suggest the cost of a failed lateral partner can be as much as four times the lawyer's actual compensation; this includes the costs of replacing the lawyer after a departure. Burns White doesn't have a magic formula, but after years of lateral hiring, our firm has found success by focusing on strategic growth, engaging in open communications with lateral candidates and providing a supportive community for those who join the firm.

Jessica L. Gangjee serves as director of recruitment and professional development at Burns White. She leads the firm's talent management initiatives and is also responsible for all aspects of attorney hiring, integration and assimilation as well as the development and implementation of professional development programming.

Jeffrey S. Adler is the chief operating officer, (Eastern Division), of the firm and is responsible for the management of the firm's offices in Philadelphia; Conshohocken, Wilkes-Barre, Cherry Hill, New Jersey; New York, New York and Wilmington, Delaware.