5 Reasons Associates are Making Lateral Moves Right Now
The summertime can feel like an odd time to change jobs as a BigLaw associate. You might have a vacation or two. (Or, at the every least, you might have a welcome slowdown in hours as the partners and clients that you work with are away on their vacations.) You might be on track to make your hours for the year and are worried what might happen to your bonus.
At the same time, you know that a lateral move is in the cards for you at some point for one reason or another (see my earlier article,"Why Lateral?"). So why might you make that move now, as opposed to several months or years from now? Here are 5 good reasons:
The lateral hiring market is very, very active. Right now, the number of associate positions at larger law firms across multiple practice areas and major markets is incredibly high. In fact, according to data provided by Firm Prospects, as of today, there are almost 2,000 active associate job postings for attorneys with 1-5 years experience in the major U.S. legal markets (New York, California, DC, Chicago and Boston). If you're trying to do the same work at a different firm, shift your practice or make a geographic move from your current BigLaw firm, chances are there are at least a couple good opportunities out there for you.
The number of opportunities could go down soon. Quickly. According to a recent survey of professional economic forecasters, only 15% expect a U.S. recession by the end of 2019; but 60% expect one by the 2020 U.S. election. A recession (or even an economic slowdown) has a huge impact on legal hiring as much of BigLaw legal services is directly tied to the health of the financial services and other major U.S. industries. As a result, the amount of need for experienced associate talent will drop. During the 2008 financial crisis, this drop in need more or less happened overnight.
Your marketability might drop the longer you wait. Particularly if you are a midlevel or senior associate, if you wait to long to make a lateral move, you may end up being less marketable to other firms. If you get to your 6th year or more, the number of openings starts to drop dramatically. Firms want to invest in associates that are senior enough to have the right experience, but also junior enough to be trained and developed according to the structure and style of their new firm. This is why you'll see many more openings for "junior" or "midlevel" associates.
You might get too deep in a practice are you don't like. Generally speaking, most BigLaw firms want to specialize their associates as quickly as possible. With some firms, this may mean that you don't get your "first choice" practice area when you return from your summer program and start as an entry level associate. The business needs of the particular firm or office might conflict with your personal preference for your career. It might be possible to shift to another practice later on at the same firm, but oftentimes it is not. You may need to make a lateral move to do this. And if you get too much experience in your specialized practice, you might find it hard for another firm to allow you to tweak, adjust or "retool" your practice.
More than anything, it's at least worth having a conversation with a recruiter!Recently, I had a conversation with a former Harvard Law advisee who is working at a major NYC firm and thinks he wants to move back home to Los Angeles at some point. For his practice, there are only a limited number of firms that do the type of work that he does, many of whom are hiring. But for him personally, he's only been at his NYC firm for a couple years and he really enjoys the training and experience that he is getting. He knows there is some risk in waiting, but we talked through the openings that exist in Los Angeles for his practice, how long they have been open and what the groups look like. Ultimately, he decided to hold for now. But knowing his goals, I can keep him updated as opportunities are added, changed or dropped. The only way that a recruiter can help you in this way is if you at least start a conversation.
** Side note: If your concern about moving now relates to whether you will be eligible for a full bonus at your new firm at the end of the year, talk to your recruiter. Each firm handles this differently and there are options and strategies to consider.