Retaining a lateral partner after they’ve announced their departure can be a daunting task for many law firms. Preventing such exits requires a proactive approach, fostering a “sticky firm” culture that encourages staff to remain in the long term. As the ease of switching firms increases in today’s competitive legal landscape, law firms must reassess traditional methods used for talent attraction and retention.
Ensuring optimal communication is the first step toward successful talent retention. In fact, according to a 2021 study from McKinsey, employees tend to leave organizations when they feel that managers don’t care about them. As part of an effective retention strategy, firms should conduct comprehensive 360 reviews for lateral partners to identify areas of success and those needing improvement. These should be performed every 90 days during the first year, followed by quarterly reviews in the second year, and then bi-annual reviews.
Creating a sense of community within the firm is equally pivotal. Law firms can address these issues by investing in not only the professional development of their legal talent but also by developing an organizational culture that emphasizes meaning and purpose. Initiatives like mentorship programs can greatly contribute to the satisfaction, integration, and retention of lateral lawyers. Equally important is access to business development professionals who can help lateral attorneys quickly build their network and establish themselves as part of the firm.
According to the Major, Lindsey & Africa 2023 Lateral Partner Satisfaction Survey, a law firm’s perceived ability to support lateral practices is a significant factor in a partner’s decision to stay with a particular firm.
Moreover, supporting employees during significant life events, like the birth or adoption of a child, demonstrates a firm’s commitment to work-life balance. A MetLife annual employee benefit trends study showed that 74% of millennials, the largest workforce cohort, would like access to paid and unpaid leave benefits. Offering paid parental leave is one potential solution, with the benefits also trickling down to the overall productivity of the firm.
According to the American Bar Association the top three reasons that female attorneys leave firms are caretaking commitments, work stress, and an emphasis on marketing.
Historically, law firms relied on their brand reputation to ensure attorney satisfaction. However, in the current competitive landscape, understanding why attorneys stay or leave is essential for crafting robust lateral retention programs.
The above insights serve as a guide for law firms dealing with talent retention concerns and aims to shed light on the keys to successful lateral partner retention. This overview is fundamentally based on the legal expertise of Brian Carrozza, Courtney Hudson, and Megan Senese. For further reading on this topic, please refer to the full Bloomberg Law article.