Honigman experiences high turnover rate as it embarks on expansion plan
Michigan-based Honigman Miller Schwartz and Cohn has seen an exodus of lawyers over the last couple of years as the firm embarks on an ambitious expansion strategy.
On Tuesday, Crain’s Detroit Business reported that 66 attorneys have left the 270-lawyer firm since the beginning of 2015. Crain’s found, of those 66 departures, 30 have come in 2016 alone. To compensate, the firm has welcomed 81 new hires since the start of last year.
According to Crain’s, David Foltyn, CEO of Honigman told them that the turnover was part of a strategic growth plan and that many of the departing attorneys, “didn’t think they fit in” anymore. Foltyn, who said that the departures were both voluntary and involuntary, indicated that the litigation department has been particularly affected by the firm’s strategy. “Turnover is really part of law firm life,” Foltyn told Crain’s. “We’re doing a lot of strategic alignment and development. Some departures were a result of that strategy. There are some people that I wish hadn’t left. There is some turnover that I’m delighted with, quite frankly.”
The firm, which has five offices in Michigan, recently made a move into Chicago by acquiring Schopf & Weiss, a 14-lawyer litigation firm. According to Crain’s, the firm has also tried to expand its intellectual property capabilities by bringing in new hires in that area.
The firm’s expansion plans come at a time when it’s facing increased competition in Michigan. “Jones Day is considered to be a big rival for the [Honigman] firm, and there was a lot of anxiety here when it moved actively into this market and opened an office,” a former Honigman employee told Crain’s. “Because Honigman aspires to be a national firm of that caliber, and people could naturally transition.”
Despite the high turnover, which Foltyn called “unsettling,” the Honigman CEO insists his firm is doing well. “We’re having another great year,” Foltyn told Crain’s. “Our balance sheet is strong, and we continue to recruit incredibly well. We don’t have debt; we don’t borrow. We’re the best place for the best lawyers to build and grow their practice.” Foltyn also claimed that the Chicago office has already paid for itself.
