Credit: lchumpitaz/stock.adobe.com Frenzy in the Lateral Market Obscures Hidden Concerns
Even firms that have been net winners in the current war for associate talent have lost alarming numbers of associates to other firms. Clearly, something deeper is occurring that firms must address.
March 07, 2022 at 08:53 AM
10 minute read
The legal market for lateral talent is at a fever pitch. Six figure signing bonuses for mid- to senior-level associates have become commonplace. Veteran observers of the vicissitudes of the legal market believe it is not sustainable. It is fair to ask what will happen when the pace falls back to earth. Layoffs come with a significant risk of reputational damage for law firms. Yet carrying underutilized associates comes at a significant cost to profits.
The balance may be struck by addressing some of the underlying concerns obscured by the current hiring frenzy. It is tempting to conclude that the high level of mobility is solely the result of demand caused by an overheated market. But this fails to account for the other reasons leading to associate mobility—reasons that should pose longer-term concerns for law firms: the dissatisfaction experienced by many associates with the career path their law firms offer. Even firms that have been net winners in the current war for associate talent have lost alarming numbers of associates to other firms. Clearly, something deeper is occurring that firms must address.
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