Michelle & Drew Foster Published in Law.com on the Motivations and Reasons Attorneys are Making Moves
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Top 5 Motivations and Reasons That Attorneys Are Making Moves
“The job market is strong, and there is a swath of opportunities. Attorneys who have even an inkling that it might be time for a move should take the time to explore the options,” said legal recruiters at The Foster Group.
In 2020, as the Covid-19 pandemic was at its height, hiring in the legal field experienced a dramatic decline. One year later, hiring skyrocketed, with the legal job market experiencing a 150% increase. This year continues to be strong for lateral hiring, with only a slight cooling off from the prior year. Overall, attorneys are making moves, taking advantage of the wide range of opportunities that are now available to advance their careers and obtain positions that bring a higher level of satisfaction.
Understanding the motivations and reasons behind those moves is important for firms and attorneys alike. For firms, it can provide the insight that is necessary for attracting and retaining top talent. For attorneys, it can provide the motivation to explore the market and move into a new role.
1. Compensation and Work-Life Balance
There are a variety of factors that lead to increases in the compensation scale at law firms. In one sense, they are cyclical, being implemented every few years. Economic factors can also play a role - a red-hot economy certainly drives up compensation. Additionally, when firms see an increase in demand from their clients, they will adjust their compensation scale to attract the talent needed to manage that demand. Regardless of the reason for an increase in compensation, it is definitely a factor that can motivate a move.
In this season, there is a new factor that is motivating moves related to compensation. The legal field, like many others, experienced a shift in remote work and hybrid work arrangements as a result of the Covid-19 pandemic. While the effects of the pandemic are receding, many firms are continuing to utilize remote and hybrid arrangements rather than requiring a full-time return to the office. These arrangements open the door for attorneys to receive compensations levels that they did not have access to in the past when their opportunities were limited to part-time arrangements or smaller geographic markets.
In addition, remote and hybrid work opportunities are empowering attorneys to make moves that provide them with a healthier work-life balance. As with workers in other fields, attorneys who are not required to be in the office full-time have a higher level of autonomy, providing greater opportunity for balancing professional and personal commitments. A recent report published by the American Bar Association shows that 44% of lawyers with 10 years or less of practice said they would be willing to leave their current job in order to achieve greater remote work opportunities. Those in the field of legal recruiting have found that a segment of the candidate pool is no longer willing to consider positions that require them to be in the office every day.
2. Shift in Focus
As law firms evolve, their focus can change. A change in the economy, such as a boom in the tech market or a crash in the housing market, can shift a firm’s focus to a new sector. Continual increases in a firm’s billing rates can price out a certain type of business, or at least lead to a decline in the amount of work that comes from that office. Even opening an office in a new location can lead to changes in the firm’s focus.
When these types of changes occur, attorneys can find themselves in a position, or clearly headed for a position, that no longer supports their practice area or client base. At that point, the attorney needs to evaluate if the firm’s platform is still supporting them, investing in them, and providing the resources they need to continue to serve their current clients and attract new ones. If not, they should entertain a move to a firm that provides a more synergistic fit and focus.
3. Rate Issues and Conflicts
Increases in hourly billing rates are not unusual in the legal world - it is expected. However, at some point, the rates may reach a level that is no longer ideal for an attorney’s practice and their client base. This typically occurs when rates begin costing attorneys clients or, in less extreme cases, result in clients providing them with fewer matters.
When a firm permits its attorneys to offer their clients more flexible billing rates or value-based billing, it empowers those attorneys to adapt to their clients’ needs in a meaningful way. As a result, they can keep more clients and bring in more business. Attorneys that see the value in working with a variety of pricing arrangements will take advantage of opportunities to move to firms that will accommodate those arrangements.
Conflicts can also be a big source of frustration for attorneys as they attempt to bring in new clients or new work. When current or prior relationships at the firm prevent an attorney from working with a particular client or bringing in major matters from existing clients, it can limit the attorney’s advancement in a number of ways. Making a move to a new firm can do away with these limitations as it does away with the conflict.
4. Changes in Leadership and Policies
When a law firm’s leadership changes, it has the potential to dramatically change the environment for attorneys. The firm’s strategic focus can change, which typically will also bring a change to the way that resources are allocated. As a result, attorneys can suddenly find themselves subject to new strategies and grappling with new goals which may not align with their particular client base. This can often prompt a move to a firm where there is a better fit.
In some cases, politics play out in a way that impacts the origination credit an attorney receives. In other cases, it can result in a new workplace culture. Changes like these can motivate attorneys to make moves to firms that have structures and policies that are more beneficial to them.
5. Better Opportunity
While moves may often be motivated by a problem that surfaces at an attorney’s current firm, it is sometimes simply a better opportunity elsewhere- not a problem- that prompts a move. Attorneys, like the firms in which they work, are always evolving. As their careers develop, they may find that an opportunity would provide a position that is more synergistic or advantageous to their clients and their practice, resulting in more career equity and compensation.
This is an exciting time for those in the legal profession. The job market is strong, and there is a swath of opportunities. Attorneys who have even an inkling that it might be time for a move should take the time to explore the options. Keep in mind that it is more than a job move, it is taking a step that can propel you forward in your career; and careers are built step by step.