‘Squeezed’ and Laid-Off Partners Spur Uptick in Lateral Hiring, Recruiter Says
Recruiters are identifying a reason for an uptick in lateral hiring by law firms: partner survival.
The American Lawyer contacted a half-dozen legal recruiters after receiving close to 40 press releases last week about new partner hires, about double the usual number.
Chicago recruiter Kay Hoppe explained that partners are being “squeezed, warned and literally let go,” making them eager to cut deals. Hoppe sounded a pessimistic note about the impact of the economy on Chicago firms. “I think it’s worse than anybody is admitting,” she said. “I think there’s a lot of anxiety in the hearts of firm leaders if they’re being totally honest.”
Southern California recruiter Michael Patrick told the American Lawyer that four of his last four placements were partners moving from a larger to a smaller firm, although all the firms are among the top 100. Half the recent placements took pay cuts. The upside is that the lawyers can be more flexible and offer their clients lower fees at the new firms.
“People are no longer moving to amplify their comp,” Patrick said. “They’re moving to survive.”
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