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Law firms are continuing to scale back on lateral hiring of lawyers for the second year in a row, following the intense talent competition witnessed in 2021, as reported by the National Association for Law Placement (NALP).
Diminished Lateral Hiring Trend
According to a recent press release from the NALP along with insights from an article in the NALP Bulletin, lateral hiring by law firms experienced a substantial 35% decline in 2023, following an 11.5% decrease the previous year.
Figures and Statistics
The median number of lawyers hired plummeted to 4.0 in 2023, with an average of 9.3 per office or firm, marking the lowest figures recorded since 2010.
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Remote Work Dynamics
As the legal market stabilized, there was a noticeable decrease in the allowance of lateral hires to work remotely outside of firms’ primary geographic regions. The percentage of lateral partners permitted to work remotely dwindled to 12%, down from 16.1% in 2022, while for associates, the figure dropped to 13.6%, down from 19.3% in the previous year.
Associate vs. Partner Trends
The decline in lateral hiring is more pronounced for associates than partners. Associate lateral hiring witnessed a substantial drop of nearly 43% in 2023, following a 20% decline in 2022. This decline was particularly notable in firms boasting over 1,000 lawyers, where associate lateral hiring decreased by 51%.
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Conversely, partner lateral hiring only saw a 10% decrease in 2023, following a modest increase of 5.5% in the previous year. However, the decline was notable in firms with 501 to 700 lawyers and those exceeding 1,000 lawyers, where lateral hiring decreased by 19.1% and 19.9%, respectively.
NALP Analysis and Insights
The NALP analysis, derived from over 4,400 lateral hires at 479 firms and offices, provided critical insights. While firms were encouraged to report hiring based on individual offices, some data encompassed firmwide hiring.
Nikia Gray, the executive director of the NALP, highlighted additional research indicating a decline in offers for summer associate programs. Gray emphasized that these trends strongly suggest firms are projecting lower client demand over the upcoming years, prompting a strategic realignment of their talent growth strategies.
Through these insights, it becomes apparent that the legal landscape is witnessing a significant shift in lateral hiring practices, reflecting broader changes in the legal industry’s dynamics and client demands.
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