The Role of Portable Clients in Law Firm Lateral Recruitment

The Role of Portable Clients in Law Firm Lateral Recruitment

With law firm lateral recruitment, the portability of a candidate’s book of business is a pivotal concern for risk management and return on investment (ROI). According to an article by Decipher Investigative Intelligence, law firms aiming to grow through lateral hiring in 2024 should understand how transferable a candidate’s clients are, which can provide essential insights.

Data cited in the article indicates that, on average, candidates claim to port about 57% of their listed clients; however, the reality is closer to 35%. This disparity underscores the importance of thorough due diligence and a keen understanding of client portability trends.

Over recent years, the decline in claimed client portability reflects the increasing competition for lateral hires. The article says that in 2018, candidates boasted a portability rate exceeding 75%, now dwindling to 57%. This 25% drop indicates a tightening market and law firms’ heightened capabilities to identify inflated claims. Such trends suggest that firms should prioritize rigorous evaluations of candidates’ assertions during the recruitment process, as the likelihood of accurately porting clients has diminished.

Furthermore, portability rates fluctuate significantly based on various factors, including geography, practice area, and attorney experience. For instance, client portability is notably high in cities like Boston and Los Angeles, while firms in Washington D.C. should exercise caution, as reported portability is significantly lower there. Additionally, practice areas like Trusts & Estates show higher client loyalty, whereas fields such as Bankruptcy & Restructuring exhibit much less stability in client relationships. Recognizing these nuances can significantly enhance recruitment strategies.

Lastly, attorney experience plays a crucial role in client portability. Candidates with over 40 years of experience report an 80% portability rate, well above the average. In contrast, less experienced lawyers also claim higher-than-average portability rates, highlighting the need for law firms to critically assess the context behind these claims.

By integrating data-driven approaches and validating candidate assertions, firms can mitigate risks and make more informed hiring decisions, ultimately securing a competitive edge in law firm lateral recruitment.