About half of lateral partner moves involve a search firm, according to the 2023 Lateral Partner Satisfaction Survey. Engaging a recruiter isn’t just commonplace, it’s often critical, as search firms have access to networks (and marketplace buzz) that law firms do not.
Recruiters are an investment, typically commanding placement fees in the healthy six figures; an AmLaw 50 lateral partner’s headhunting fee averages $598,400. But given that 64 percent of lateral partners will fail to bring their promised book of business, and that 48 percent of laterals will leave within five years, how can law firms maximize their recruiter ROI?
After screening thousands of lateral partner candidates — a significant number represented by highly professional recruiters and recruiting firms — we have 10 questions you should be asking to help distinguish the best from the rest:
1. What is the hiring rationale? Why are you bringing this specific candidate to our specific firm? Why are we a good fit for their book of business, industry expertise, practice specialty? How will they advance our goals? The right recruiter will have a working knowledge of your firm’s strengths, and even without a copy of your strategic plan, can articulate why this hire makes sense for both sides.
2. How was this candidate sourced? It’s important to understand the basis of the initial contact: Is this truly a strategic candidate who’s looking seriously at firms like yours, or is this a friend-of-a-friend situation where the search firm is tossing out some breadcrumbs and hoping for a bite?
3. What does the book of business look like? Firms must go beyond composite numbers; a “$5 million book” doesn’t provide enough context for a real assessment. Keep in mind that on average, lateral partner candidates claim to port about 57 percent of the clients they list on their lateral partner questionnaires; the actual portability rate is about 35 percent. If that $5 million book is all tied to one client, odds are against it all coming to your firm.
4. Who filled out this Lateral Partner Questionnaire? When we are screening candidates, it is consistently surprising how many LPQs are actually completed by search firms, not the candidates themselves. Not only is this borderline unethical, it often results in inconsistencies between the LPQ and any kind of screening, making due diligence a longer and more cumbersome process.
5. What are the candidate’s strengths and weaknesses? No candidate is perfect, and the right recruiter should be forthright and transparent. Savvy search firms will have some constructive feedback on even senior rainmaker candidates; if your recruiter presents laterals as too good to be true, they probably are.
6. What questions do you have for us? Another red flag: the recruiter who only wants to talk and never wants to listen. Again, you don’t have to give the search firm your strategic plan, but the right recruiter will show genuine curiosity, not just Google research. They will want to know about the strategic fit, practice area and cross-selling potential – not just for this client, but for future connections, too.
7. How do you define “data”? Some search firms are following the Big Data trend and purporting to offer quantitative screening or proprietary analytics. This should be viewed skeptically, and law firms should absolutely ask to see the math. Search firms are not in the business of gathering independent intelligence; far too often this “data” takes the form of surveys or candidate-provided information.
8. How are you incentivized for long-term success? While every search firm is different, it’s common for recruiters to receive their fees shortly after the lateral partner joins. However, it can take a while to onboard the lawyer and even longer to realize there may be issues with client portability, cultural fit or bad behavior. Granting refunds within months isn’t long enough; law firms should ask for consideration periods of at least 18 to 24 months.
9. Where else are you presenting this candidate? As we said, you want to work with search firms that know your business and bring you lateral partners that fit into your strategic plan and culture. If that is truly what they are doing, they will not be shopping candidates all over the market; what makes a great fit at Firm A can make little sense at Firm B.
On a related and crucial note:
10. What’s your timeline? Resist the fire-sale lateral, and run from any search firm that uses strongarm tactics to pressure you into hiring a candidate quickly. Whether it’s an artificial deadline or buzz about the competition, hurried moves don’t allow you to conduct the necessary pre-hire due diligence that keeps out problematic partners. Ask for the timeframe you need for both due diligence and strategic planning, and be prepared to walk away if the recruiter will not honor it.
Even with the very best search firms, we offer two caveats:
- Let your recruiters bring you candidates; use data to strategically grow identified needs. Recruiters play an important role connecting law firms with laterals who want to move; these transactions make the most of search firms’ networks and expertise. However, when it comes to filling a talent pipeline — and sourcing talent for an office, practice or industry team — it’s far more effective to apply a strategic, data-driven approach that takes into account the entire market, such as Decipher’s custom talent playbooks.
- Trust but verify. Your search firms should screen candidates before they introduce you, but this is no substitute for true due diligence. Comprehensive due diligence should incorporate objective intelligence as well as human intelligence, but above all, it should be conducted by an independent resource with no financial tie to the ultimate result. Decipher offers three levels of pre-hire due diligence that protect your firm’s revenue and reputation.
