Some law firms use 'Moneyball' approach to assess lateral hiring
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More than 20 percent of the nation’s top law firms are turning to statistical tools to evaluate lateral hiring, according to estimates by recruiters and software companies.
The American Lawyer (sub. req.) spoke with experts about how law firms are turning to the type of “Moneyball” analytics that have been used to evaluate baseball players. Statistics are used to decide not only who will be recruited but also how much they will be paid, according to Amanda Brady, global practice leader for law firm management at recruiting firm Major Lindsey & Africa.
The article says these tools are being used:
• A Spotlight Analytics tool by Aderant Holdings tracks 200 performance indicators for timekeepers, allowing firms to analyze whether laterals met expectations for billing, revenue and collections. They data can then be used to create a profile of the most successful hires, and to determine whether a law firm needs more rainmakers or more nonequity partners and associates to handle the workload.
• The 2015 Real Rate Report Snapshot Edition by Wolters Kluwer ELM Solutions aggregates billing data. Firms can use the information to estimate what a partner at a competitor might be billing for legal work.
• Thomson Reuters Peer Monitor, which collects data from 155 large law firms, can identify areas where lateral hires are needed.
