A survey conducted by Robert Half Legal found that attorneys are seeking lateral moves for control over their practices as well as their personal lives.
Overall, the survey provided further confirmation to common thought about the legal lateral market. The survey found the top motivators for attorneys to make lateral moves are, unsurprisingly, money as well as work-life balance and professional autonomy. The results suggest to Robert Half directors that small to mid-size firms stand to benefit due to their slightly relaxed requirements in comparison to BigLaw bretheren.
“Small to midsize law firms are attracting [attorneys] by giving them an incentive to profit share down the road,” said Mala Saraogi, director of Robert Half Legal in Denver. “They’re not enforcing the stringent billable hour requirement of a minimum of 1,900 hours a year. They’re making sure they’re providing them with the autonomy to go and get whatever business they can … and get on partnership track. They are making sure of these and the quality of life that comes with the lower billable hour requirement.”
And it still holds true that many attorneys look to BigLaw jobs to get the endorsement from an employer to then get a “ticket to other firms,” she said.
The survey was conducted by legal recruitment and consultant firm Robert Half through its staffing offices across the country. It asked 200 lawyers at law firms with 20 or more attorneys about their primary motivators to make lateral moves as well as about book of business requirements.
Results showed that 36 percent of attorneys said the primary motivator to change jobs is earnings potential down the road. Twenty-nine percent said they would change jobs for better work-life balance, and 13 percent said they would move for more professional autonomy. Other specific motivators were career advancement opportunities or job security.
While factors that give attorneys more control over their personal and professional lives outweigh those opportunities that might move their careers along, Saraogi said attorneys move to smaller firms in order to do it all.
“They’re accomplishing all of the above including getting on partner track quicker with the smaller firms,” she said. “They feel like they can get there because of that autonomy and not worrying about the billable hour requirement. They can focus on business development and bring in more clients that would otherwise get conflicted out or that couldn’t afford a higher billable rate [at a large firm].”
And as money is a major motivator for attorneys looking to move to new law firms, it’s also a key factor for law firms considering laterals. The survey found that most law firms have a minimum portable book of business requirement for senior-level laterals in the $250,000 to $500,000 range.
Midsize and boutique law firms, in particular, have a critical need for experienced associates to help them expand high-demand practice groups,” said Jamy Sullivan, executive director of Robert Half Legal. “Lawyers with extensive practice area expertise who can meet or exceed a firm’s portable business requirements often command above-market salaries.”
According to Saraogi, however, law firms are appearing to be more willing to take on lower books of business in order to add to their own revenue. The national average portable book of business required by law firms is $297,000; Saraogi said the average in Denver is about $200,000.
“I’ve talked to partners at law firms, and they’ll say the more the better, but realistically they don’t want to lose out,” she said. Anecdotally, she said she’s talked with partners from at least three law firms that said they would look for a lower book of business in order to add to their attorney count.
Research conducted by Robert Half Legal for its 2019 salary guide also found average annual starting salaries for senior-level lawyers is around $130,000 in the U.S.
“People from big firms are wanting to get out of the hard-and-fast billable hour requirements,” Saraogi said. “They’re preferring to go to small to midsize firms where they can bring more clients on.”
— Tony Flesor