How Firms Can Retain Partners Despite the Lateral Hiring Frenzy

Law firm leaders are pouring resources into recruiting laterals from competitors, but they should be placing just as much attention on retaining the partners they already have. Laurie Caplane of Law Vision writes about why it is so important not to lose these top-performing partners as the lateral hiring frenzy intensifies.

Recruiters routinely reach out to a firm’s most accomplished partners. Reputation and client following make them targets regardless of how content they appear.

Firms often wait until a partner is actively weighing an outside offer before responding, then negotiate from a weak position because they didn’t address concerns earlier.

Firms need to pay attention to which partners are facing pressure around staffing, rates, conflicts, or leadership succession. Compensation alone rarely explains a departure, the article notes. Competitors typically pitch a broad platform that emphasizes autonomy and support, and making sure partners can see a path forward in the firm’s long-term plans.

To keep partners happy, firms should fix irritants like slow conflict clearance or inadequate marketing support, and ensure client service stays strong. A rival pitch often hinges on gaps in how clients are being served.

Candid conversations between leadership and partners, and awareness of competitors’ moves, are paramount. Tenure or friendship offer no real protection against departure, Caplane explains.

Treat partner retention as a form of enterprise risk management. Identify which partners carry key-person risk to revenue and client relationships. Monitor market activity among rival firms to anticipate where recruiting pressure is likely to emerge next.

Building retention planning into operations, rather than treating it as a reactive response to lateral hiring threats, is the durable approach.