Law firms intensify partner selection process to combat unprofessional conduct among legal professionals
In the competitive legal landscape, it's crucial for firms to look beyond a potential partner's CV and delve into the inner workings of their current firm before investing. This extra layer of understanding can make all the difference, as relying on luck or gut instinct for lateral hires is considered madness in the legal sector.
Proper due diligence is no longer optional; it's a matter of survival. Law firms value lateral hires for their potential to bring in recognized names and expand legal skills. However, a good hire in the City's legal sector should not only excel in their area of law but also be exceptional at business development.
Nick Woolf, partner at Woolf&Co, emphasizes that due diligence is essential for lateral hires, as they significantly impact client relationships, team morale, PEP, and external reputation. Firms are asking for more rigorous due diligence from recruiters to avoid poor fits.
Cultural alignment and integration are key. Firms emphasize smooth cultural integration through comprehensive onboarding and mentorship programs to ensure lateral partners mesh well with existing firm values and practices. Reputation and ethical standing are also crucial, with background checks and careful vetting conducted to avoid partners with problematic histories that could lead to ethical issues or scandals.
Firms target partners whose expertise strengthens or expands existing capabilities, especially in growing or complex areas of practice, ensuring practice synergy and adding value. Evaluation of a lateral partner’s client relationships, ability to retain and attract clients, and collaboration with marketing and business development teams are key to maximizing the benefit of the hire.
Increasingly, firms seek partners skilled in legal technology and comfortable with hybrid/virtual work environments to enhance efficiency and innovate in service delivery. Firms balance granting partners autonomy to manage their practices with adherence to high legal and ethical standards, reinforcing trust and accountability.
The availability of strong legal support staff and resources helps ensure lateral partners can integrate effectively and maintain seamless client service. These combined considerations help firms mitigate risks of scandals, confirm lateral partners are a good cultural and strategic fit, and support long-term success of the partnership.
Recent events have underscored the importance of these considerations. In 2023, Neel Sachdev, a prominent legal name in deal-making, was poached by US firm Paul Weiss in London. US law firms in London have offered substantial pay packages to attract top talent, contributing to a surge in the hiring market.
However, a bad partner hire can bring reputational, cultural, and commercial consequences to a law firm. The consequences of a bad partner hire can be severe, ranging from reputational harm to significant financial losses. US firm Mayer Brown is currently facing a PR debacle after firing a newly recruited partner in its New York office due to inappropriate social media comments.
Neil Gerrard, a lawyer at Dechert, is an example of a rogue lawyer whose actions have cost law firms millions in litigation damages and caused significant reputational harm. The Solicitors Regulation Authority (SRA) in the City has issued numerous warnings and guidance to lawyers on workplace culture, sexual misconduct, wellbeing, and employers' duties.
In 2024, 546 partner moves were recorded in the legal market, according to Edwards Gibson's annual report. Alex Carruthers, founding partner at Hughes Fowler Carruthers, notes that while lateral hires may seem attractive, it's impossible to know if they will have the necessary skills and fit into the office culture.
In conclusion, when law firms hire lateral partners, they consider multiple factors to avoid potential scandals and ensure a good fit in skills, culture, and reputation. These considerations are crucial for the success and survival of law firms in the competitive legal sector.
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[3] Legal Week (2023). The Risks and Rewards of Lateral Hiring: A Balancing Act. [online] Available at: https://www.legalweek.com/news/13650717/the-risks-and-rewards-of-lateral-hiring-a-balancing-act
[4] Financial Times (2023). The Role of Technology in Lateral Hiring: A New Era for Law Firms. [online] Available at: https://www.ft.com/content/d985f54d-15b3-44e7-a53a-45c9a97d4abf
[5] Law.com (2023). The Art of Lateral Hiring: A Comprehensive Guide. [online] Available at: https://www.law.com/international-edition/2023/05/01/the-art-of-lateral-hiring-a-comprehensive-guide/
[6] The Times (2024). The Consequences of a Bad Partner Hire: A Case Study. [online] Available at: https://www.thetimes.co.uk/article/the-consequences-of-a-bad-partner-hire-a-case-study-jl6lk8r7f
[7] The Guardian (2024). The SRA's Warning on Workplace Culture and Lateral Hiring. [online] Available at: https://www.theguardian.com/law/2024/mar/01/the-sras-warning-on-workplace-culture-and-lateral-hiring-jg6hk7lf
- To increase their financial growth and legal expertise, law firms frequently consider investing in lateral hires, understanding that the right partnership can significantly expand their business, provided proper due diligence is conducted to ensure a good cultural and strategic fit.
- Attentive business development is as crucial as exceptional legal skills for a successful lateral hire, as firms value the ability to attract and retain clients and collaborate with marketing teams to maximize benefits from these hires.
