Report this comment to a moderator

Revealed: lateral partner hiring doesn’t work

If only those who seem willing to pay for the dubious advantages to be had from the lateral hire did their homework the activity levels may decline and the success measured in how long partners stay may improve. When factoring in the visible cash costsof a lateral hire (recruitment charges and disbursements) together with the invisible costs of the inevitable disruption, consequential staff departures, frustrated promotions, loss of productivity, increased training, weakened partnership structures and more the net benefits can be little more than smoke and mirrors. The impact on margin for the acquiring firm is frequently negative when taking account of real costs.The only people who benefit may be the 3rd parties involved and the individual partner. The 'new' firm are highly unlikely to see a net economic gain in less than 4 years. What does it say for lawyers' sense of entitlement?

15-Feb-2011

4:04 am