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Law firms are cutting back on summer associate hires, while boosting lateral partner recruitment to expand transactional services and capitalize on an economic rebound.
Law firms grapple with strategic decisions that impact their growth, stability, and client service. Two recent trends have caught the attention of legal professionals: a slowdown in summer associate recruitment and an increase in lateral partner hiring. Let’s delve into these developments and explore their implications.
The Summer Associate Conundrum
BigLaw firms are navigating a challenging recruitment cycle for summer associates. According to the National Association for Law Placement (NALP), this year’s recruiting program has been the most underwhelming since the Great Recession. Here are the key takeaways:
Offer Rates Decline: Offer rates for BigLaw summer programs dropped by 19% compared to the previous year.
Callback Interviews: Only 46% of callback interviews resulted in offers for summer 2024 positions, marking the lowest offer rate since 2012.
Acceptance Rate: Desperation was palpable, leading to an acceptance rate of 47%, the highest ever recorded by NALP.
Concerns and Client Demand
Nikia L. Gray, NALP’s executive director, highlights growing concerns among firms. If client demand doesn’t increase to match new talent absorption, firms may continue to carry excess capacity through 2024. Law students face uncertainty as they navigate a competitive market.
Lateral Partner Hiring: Anticipating a Rebound
AmLaw 50 firms are taking a different approach. As the economy rebounds, these firms are ramping up lateral partner hiring.
Transactional Focus: With an eye on transactional work, firms seek seasoned partners to bolster their capabilities.
Strategic Moves: Lateral hires bring expertise, client relationships, and immediate revenue potential.
Risk Management: Firms anticipate a surge in M&A, capital markets, and finance work. Lateral partners mitigate risk by diversifying practice areas.
AmLaw 50 Firms have increased lateral partner hiring by nearly 20% for the first two months of 2024 when compared to the same period in 2022 and 2023, according to research by international search firm Macrae.
While summer associate recruitment faces challenges, lateral partner hiring signals optimism. As the hiring trends change, it's always best to keep abreast of available jobs that interest you. Make sure you update your job preferences and check out the latest legal jobs here.
