Partners' Survey Highlights Importance of Lateral Integration

Key Takeaways

In this update to a 2020 article, Sarah Van Steenburg examines what MLA’s 2023 Lateral Partner Satisfaction Survey reveals about successful lateral moves. Effective integration, practice support and candor remain closely connected to partner satisfaction and retention.

• Confidence in firm management and strategy remains a major factor in partners’ decisions to leave.
• Practice support is the leading consideration when partners choose a new firm and a key source of disappointment when expectations are not met.
• Satisfied lateral partners rate integration efforts significantly higher than dissatisfied partners.
• Candid discussions during recruitment help firms and candidates establish realistic expectations.
• Successful integration requires sustained support, measurable goals and access to the firm’s relationships and resources.

In 2020, we examined the importance of lateral partner integration as a key driver of retention, satisfaction and law firm growth. Six years later, as high-profile lateral moves and major law firm combinations continue to reshape the market, it is worth revisiting those findings and considering what they mean in today's environment.

The business of law firms is undergoing significant change. The arrival of AI, the generational transfer of leadership from Baby Boomers to Gen X and Millennials, and  continuing economic uncertainty are pushing firms to think carefully about how they gain and maintain market share. Uncertain times, though, can be a boon for the advice and guidance of lawyers, creating significant opportunity for firms that invest thoughtfully in both technology and people.

Against that backdrop, lateral partner engagement and satisfaction are more important than ever. Partners exploring the market, and the firms courting them, can make better decisions by understanding what drives lateral partners to change firms and how those partners define success at their new firms.

Major, Lindsey & Africa has been studying lateral partner satisfaction since 1996. In January 2023, we published our fifth Lateral Partner Satisfaction Survey, which examined the factors influencing lateral moves and the likelihood of attorneys' success at their new firms. The latest findings reinforce many of our earlier conclusions while adding important context for today's market.

Why partners leave their firms

Firm management and strategy. Lack of confidence in firm management or strategy remains the leading reason partners leave. Cited by 44% of respondents, it ranked ahead of compensation (39%) and lack of practice support (38%). The concern was especially pronounced among younger partners, with 56% of partners under 40 citing it as a reason for leaving.

That last finding is particularly notable. Younger partners have built their careers in a legal market where lateral movement is commonplace. In our experience, this has made partner retention, or the firm's ability to create real 'stickiness,' more challenging. It also underscores the need for a thoughtful integration plan for both newly promoted partners and lateral hires.

Culture. Culture also remains a primary driver of lateral moves. It was cited by 29% of laterals in 2023 and has consistently ranked among the top factors since 1996. In our 2023 survey, culture fell behind practice support and confidence in firm management.

This shift may reflect the extent to which partners now view culture through the lens of leadership and management. Culture cannot thrive without strong leadership and clear direction. Partnerships are highly matrixed environments rather than traditional top-down organizations and leading effectively takes a high level of skill and deftness developed over time.  A new leader may stumble as they gain their sea legs. In our experience, a change following a long-tenured chair can create uncertainty, expose competing visions for the firm's future and test the cohesion of the partnership. Clear communication and deliberate integration become even more important during these periods of change.

What partners value when choosing a new firm

Practice support. The ability of a new firm to support a partner's practice and help take it to the next level was the number one reason lateral partners cited for choosing their current firm. Practice support received the highest score, 4.3 out of 5, among the available attraction factors, ahead of management, culture, personalities and financial health.

This is not surprising. Many partners are building and rebuilding their books of business through hard work, hustle and a little luck. They must continue earning their clients' work, and the firm's investment in staffing, resources and business development is central to that effort. Partners want to know their practice is part of the firm's future, particularly amid mergers, lateral hiring and rapid technological change. When that support does not materialize, dissatisfaction  follows.

Practice support was also the most disappointing aspect of the move for unsatisfied laterals, suggesting a mismatch between what firms promise during recruitment and what they ultimately deliver. The recruiting process can resemble dating, with both sides naturally putting their best foot forward. At some point, however, lateral candidates must conduct careful due diligence and both parties need candid conversations about numbers, resources and expectations.

A strong integration program may implement metrics to track and measure its lateral success rate as a way to ensure the firm is living up to its commitments.  Doing so can help firms refine the recruiting process, set realistic expectations and avoid overpromising to a prospective lateral.

Effective integration remains the strongest predictor of satisfaction

The survey found that "effective integration of laterals into their new firm remains the single best predictor of their satisfaction." Five components stood out: overall firm integration, cross-selling to firm clients, cross-selling the firm's services, communicating expectations and eliciting expectations. Partners who were most satisfied with their moves rated these components nearly twice as highly as dissatisfied partners. 

The implication is clear: integration cannot be treated as a short onboarding exercise. It must be an ongoing, measurable effort that connects the lateral to the firm's people, clients, resources and expectations.

Candor builds confidence

Candor during the courtship process also has a strong correlation with lateral satisfaction. Among partners who were satisfied with their new firms, 94% said the firms had been very or somewhat candid, up from 90% in the prior survey. By comparison, only 31% of unsatisfied laterals said the same.

Among those who believed the firm had been candid, 92% said they would make the move again. Among those who were unsatisfied, only 29% said they would make the same move. Transparency goes a long way in helping a new hire feel invested in and connected to the firm. Firms should create opportunities during recruitment and after arrival to review financial information, expectations and other details essential to the partner's success.

Where laterals felt their firms had been less than candid, they were more than twice as likely to be unhappy with their compensation, three times as likely to wish they had met with more firms, and four times as likely to wish they had worked with a recruiter as an intermediary.

Originations and compensation continue to trend upward

The latest survey also brought encouraging news for partners contemplating a move. Seventy-five percent of lateral partners reported that their originations had increased since joining their current firms, up from 67% in 2020. Only 6% saw their originations decline, compared with 9.6% in 2020.

Compensation growth also showed a strong correlation with satisfaction. In the 2023 survey, 71% of lateral partners experienced compensation increases within three years of their moves, and 24% reported compensation growth exceeding 30% during that period.

Integration is a strategic investment

The legal market continues to change at an accelerated pace. Firms are navigating leadership transitions, combinations, new technologies and shifting partner expectations. Despite that uncertainty, the fundamentals have not changed: a strong lateral recruiting process must lead directly into a strong integration program.

The firms best positioned for success are not simply investing in hiring talent. They are providing the platforms, relationships, resources and support that allow that talent to grow. For lateral partners and law firms alike, candid conversations, clear expectations and sustained integration remain the foundation of a successful move.