Lateral Associate Turnover – Expensive
Law firms constantly seek new talent to maintain their success. The lateral recruitment process can be costly, often requiring significant resources and expenses.
However, it’s important to get it right.
According to laterallink.com, a 2017 NALP Update on Associate Attrition pegged the cost of replacing an associate between $200,000 and $500,000. The cost is significant but the impact on client relations cannot be underestimated either.
Some of the costs associated with an associate departure may include:
Search Costs:
When an associate leaves a firm, the firm, in an effort to find a replacement, will take on the costs of advertising job openings, conducting interviews, engaging search firms, and paying referral fees.
Training Costs:
When a new associate is hired, the firm will need to invest time and resources in training them, particularly if the new associate is less experienced than the departing associate. This may involve onboarding, orientation, and ongoing training and mentoring.
Other Costs:
Firms may also need to conduct extensive background checks, conflict checks, and due diligence on candidates.
Head Scratcher:
Firms tend to not invest the time and thought into the type of person and culture fit that they are seeking. And not surprisingly the lateral associate turnover is high.
LawCareer strives to source “right fit” candidates quickly in order to decrease turnover rates and improve retention rates for law firms. If you’d like to learn more contact me mic@lawcareer.ai.
