Recruitment
Rundown
Placement professionals from around the country highlight top trends, challenges and opportunities for hiring in 2023.
Alisa Levin
01
01
Greene-Levin-Snyder Legal Search Group
Clay Costner
02
02
LHH Recruitment Solutions
Dan Binstock, Nancy Palermo,
Matt Schwartz
03
03
Garrison & Sisson
Katherine Loanzon
04
04
Kinney Recruiting
Suzanne Kane
05
05
Macrae
Joseph E. Ankus
06
06
Ankus Consulting
Alisa Levin
Greene-Levin-Snyder Legal Search Group
“The bar for corporate associates is considerably higher. Even law firms with listings are delaying interviews. The appetite for litigation and employment law associates, on the other hand, is steadily increasing.”
By ALM Staff
ink drop/Adobe Stock
Empire Search Partners
09
09
Natasha Innocenti
Macrae
08
08
Lauren Drake
MLA
07
07
John Cashman
Alevistar
11
11
Brian Levison
Marsden
10
10
David Nicol
“Litigation practice areas and other transactional practice areas such as data privacy and L&E are driving more demand now. It also seems that smaller/midsize firms are hiring at a faster pace, perhaps because their client base is more resilient or maybe because they are still catching up in hiring talent that was lost to larger, higher-paying firms.”
LHH Recruitment Solutions
Clay Costner
Current Appetite for Associate Hires
Generally associate demand has slowed but not stopped. Corporate-side talent is less in demand than litigation talent. Here’s what recruiters around the country said:
“The credential bar is now rising a bit more when compared to the last two years. Another recent change we have witnessed is a narrower field of potential lateral associates. Many associates changed law firms in the last two years and are not ready to make another move; therefore, the pool of talent to recruit from is smaller than normal.”
Garrison & Sisson
L to R: Dan Binstock, Nancy Palermo, Matt Schwartz
Design by Hyeon Jin Kim/ALM
“There is a constant need for midlevel and senior associates, but appetite for juniors has decreased a lot since last year.”
Kinney Recruiting
Katherine Loanzon
“We see a growing need for partners with very specific practices like L&E, finance and antitrust. In some cases, firms have been more flexible with the portable business threshold since we see them valuing experience more than the actual book value.”
Kinney Recruiting
Katherine Loanzon
“The demand for lateral partners remains very high,” with a few nuances. “We are starting to see certain partners who joined firms during the pandemic—when virtual interviews were the extent of the meetings—contemplating whether the lack of in-person meetings prevented them from learning some important aspects of a firm’s culture. Likewise, we are now seeing firms requiring more in-person partner interviews because virtual interviews didn’t pick up on certain nuanced warning signs that would have likely emerged during in-person meetings.”
Garrison & Sisson
L to R: Dan Binstock, Nancy Palermo, Matt Schwartz
“Firms are not as open as in recent years to take a risk or make many investment hires. They are willing to take advantage of the less busy time to fill long-term needs that have been challenging to fill in recent years, such as capital markets or M&A, even if those lateral partners are not as profitable in the first year. Technology clients may be doing less deals at the moment, but it’s not disappearing and it will be back, so firms would be wise to recruit that talent in this market when they may be more competitive than in recent boom years.”
Macrae
Suzanne Kane
Current Appetite for Partner Hires
Generally, partners are still very much in demand, though there may be more scrutiny over books of business and a need for larger books. But there are certain practice areas where books of business aren’t the number one priority. Here’s what the recruiters had to say:
Greatest Hiring Challenges in 2023
“Intense competition at the top of the market for fewer candidates who make the cut, fee pressure, cultural hits taken when laterals are brought on and ‘spoiled’ during tighter times will impact retention.”
MLA
John Cashman
“Matching the rising compensation demands to client pressure to lower fees. This will grind away at the profits per equity partner and breed some resentment since “something’s gotta give” in terms of being able to balance revenue, costs and profitability.”
Ankus Consulting
Joseph E. Ankus
“Firms will find it difficult to find midlevel associates with rigorous training, because so many were remote during the pandemic. Even if firms find well-trained midlevels, many of the newest midlevels feel entitled to remote work, thinking the last two years, which is all they know, is the new ‘normal.’ And with some layoffs already occurring, associates at many firms are increasingly ‘gun shy’ about moving unless they believe their firm is struggling. It will be a challenge to attract the most sought-after partners unless firms are very profitable and willing to invest in talent acquisition. Counteroffers by firms to hold on to their talent are more common.”
Greene-Levin-Snyder Legal Search Group
Alisa Levin
“Developing that lasting cohesion among team members and connection to the firms’ culture/objectives as a whole has been difficult. We saw many unsuccessful hires in 2022 that left quickly for other opportunities or returned to their old employer. Firms will need to invest in creative new ways to develop that comradery and sense of belonging for new hires.”
LHH Recruitment Solutions
Clay Costner
“It will be particularly tricky for law firms to find the right balance in staffing. There’s huge tension in this regard right now. We have a highly active political administration in terms of enacting new regulations and enforcing existing ones—activity that generates the need for legal services. We also have law firms looking to trim costs with mostly associate layoffs, and tech companies doing so as well at a much larger scale, including in their legal departments. On the one hand, you don’t want to be overstaffed. On the other hand, you need to be appropriately staffed when these companies come to you for help—and they will need help. Law firms will need to be very strategic about where to add new talent and how to manage existing talent.”
Macrae
Lauren Drake
“One thing that keeps law firm leaders up at night is how to reorder partner compensation after three years of unprecedented growth. No partner wants to be taken down in compensation, but sometimes that needs to happen. Doing so without breaking glass is very tough.”
Empire Search Partners
Natasha Innocenti
Greatest Hiring Opportunities in 2023
“Firms will have some capacity to be a bit more deliberate in their process.”
LHH Recruitment Solutions
Clay Costner
Firms “can use layoffs and discontent at competitor firms to pick up associates in the current market. Similarly, firms that are in solid financial health and strong in particular sectors can pick up partners from firms that are struggling in the current environment and may be weaker in those specific sectors.”
Marsden
David Nicol
“More partners are going to become concerned about their firm’s performance and wonder if there’s a safer place to re-house their practice. A slowdown in the economy can be a once-in-a-decade opportunity for certain firms to attract a subset of partners.”
Garrison & Sisson
L to R: Dan Binstock, Nancy Palermo, Matt Schwartz
“Firms with the cash and the process to complete mergers or add substantial groups will win the talent race. Firms that know what they are good at, what they want to add to that list and what they are not interested in adding will also be way ahead.”
MLA
John Cashman
“Technology clients may be slower than usual for a moment, for example, but that’s not a sector that is going away. Firms should take this time to pursue those partners now while they have an opportunity.”
Macrae
Suzanne Kane
“In any economic downturn, it becomes harder for firms to hire from government and in-house. However, companies expect their law firms to be experts in technology, and in enforcement, to know the players at DOJ. Smart firms with resources will continue to hire from in-house and government.”
Empire Search Partners
Natasha Innocenti
Predictions
“Right now, it’s clearly a ‘candidate market.’ At some point, the scales will shift a bit more to the client side, but I think we are a long way from ‘08/’09 where it was clearly a ‘client market,’ and firms could pick and choose who they wanted very easily.”
Alevistar
Clay Costner
“The process will be slower for partner moves as in-person meetings become more common and travel is once again expected. Firms will also be more deliberate about ensuring that the business case for any move is strong.”
Greene-Levin-Snyder Legal Search Group
Alisa Levin
“Two words. Merger Mania.”
Macrae
Suzanne Kane
“The lateral market still seems pretty steady, and firms are returning to being more selective of talent and making sure the candidate has the right experience and fit.”
Kinney Recruiting
Katherine Loanzon
What's HoT... What's Not...
Hottest Practice Areas in 2023
- Regulatory/Compliance
- Litigation
- Labor & Employment
- IP (Litigation and Prosecution)
- Restructuring/Bankruptcy
- Funds/Asset Management
- Data Privacy/Cybersecurity
- Antitrust
- Energy
- Project Finance
- Private Equity/Corporate
- International Trade
- Warmer Climates
- Lower Cost-of-Living Climates
- Secondary Markets
- Florida
- Charlotte
- Raleigh
- New York
- Washington, D.C.
- Texas
- California
- Seattle
- West Coast
Hottest Geographic Locales
- Emerging Company/Venture Capital
- Private Equity
- Real Estate
- Capital Markets
- Finance
- M&A
Slowing Practices
- Midsize Firms: Recruiters overwhelmingly selected midsize and boutique firms as those that would grow the most. They’ll get talent they couldn’t during the talent wars, they face less of a demand dip, and clients are moving their work around. “If the economy continues to slow as predicted, we anticipate more partner hiring in midsize firms and boutiques,” say Dan Binstock, Nancy Palermo and Matt Schwartz of Garrison & Sisson. “In certain practice areas, rate flexibility will return to top of mind and midsize firms and boutiques will benefit. We also anticipate more spin-off firms where self-contained practice groups open their own boutiques.”
- Big Law: Large law firms are still very much in hiring mode, too.
Who’s Hiring
- Midlevels: While junior hiring is down significantly, third- to seventh-years are in high demand. “Unlike the junior associates who have had little, if any, in-office training, the current mid- to senior associates are valuable,” says Alisa Levin of Greene-Levin-Snyder Legal Search Group. “These associates had the personal training prior to COVID-19 and during COVID-19 worked independently, leading or playing significant roles on an unusually high number of deals through the busy last two years.
- Partners With Books: They never go out of style. But recruiters say scrutiny over the longevity and portability of books is getting more intense, and firms are looking for larger books of business.
Most In-Demand Lawyers
“Less associates are willing to work 2,400 hours year after year since they realize the changes of partnership are murky at best,” say Dan Binstock, Nancy Palermo and Matt Schwartz.
- Flexibility, Work-Life Balance
- Training/Skills Development
- Mentorship
- Market Compensation
- Better People to Work With
(re: Training, Temperament,
Communication)
- Better Odds for Making Partner
- Busy Practice Area
Top Things Lateral Associates Want
“I am seeing an uptick in partner candidates asking more questions about firm stability, both in terms of financial health, and the strength of the leadership,” says Suzanne Kane of Macrae. “Candidates don’t want to hear about the record-breaking last two years, they want to hear about the budget expectations and plans for the year ahead when the numbers inevitably drop.”
- Increased Compensation
- Collaborative Culture
- Resources for Their Practice Area
- Investment in Their Practice Area
- Opportunities to Cross-Sell
- Financial Stability of Their Firm
- Fewer Conflict Barriers
- Autonomy
- Management Supportive of Their
Practice
- Strong Financial Management
Top Things Lateral Partners Want
- “When incentives are still offered, firms are extending lock up and claw back periods.” says Alisa Levin, adding signing bonuses are mainly for candidates with multiple offers or to make candidates whole for lost bonuses the further we go into the year.
- “For partners, we are still seeing aggressive bonuses and guarantees (averaging stub year plus one) but the bonuses are softening for candidates who are outside the bullseye,” say Dan Binstock, Nancy Palermo and Matt Schwartz, adding that partner guarantees are much more closely vetted.
- “At the partner level, we are seeing guarantee periods in line with what we were seeing before the lateral boom of 2021 and 2022 (e.g., one-or two-year guarantees),” says Scott Yaccarino of Empire Search Partners.
Signing Bonuses & Guarantees: In or Out?
- “Most people tend to think guarantees and signing bonuses happen most in bullish market times,” notes Suzanne Kane. “The reality is that they are most important during times of uncertainty. Signing bonuses are a tool used by firms during talent wars as an advantage over other offers without having the permanent element of additional partners shares/points/units. Guarantees will become more common requests now that firms are in a time when estimated value of partnership shares is not fully reliable. Lateral partners need to know that the firm they are going to will share the risk of the move during these uncertain times.”
- “There is very little appetite on the firm’s side to pay signing bonuses to lateral associates, though guaranteed year-end bonuses continue to be an important recruiting tool,” says Scott Yaccarino.
Recruiters who contributed to this piece: Alisa Levin, Greene-Levin-Snyder Legal Search Group; Brian Levison, Alevistar Legal Search; Clay Costner, LHH Recruitment Solutions; Dan Binstock, Nancy Palermo and Matt Schwartz, Garrison & Sisson; Joseph E. Ankus, Ankus Consulting; David Nicol, Marsden; Doug Horn and Alyssa Lerner, Palmer Kent Associates; John Cashman, Major, Lindsey & Africa; Suzanne Kane, Lauren Drake and Jon Truster, Macrae; Katherine Loanzon, Kinney Recruiting; Kay Hoppe, Credential; Natasha Innocenti and Scott Yaccarino, Empire Search Partners; Susan Mendelsohn, Mendelsohn Legal.
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