What Associates Need to Know About Lateral Moves

Frank Michael D'Amore
The Legal Intelligencer
03-16-2010

The recession has turned associate career paths upside down. Legions of associates unfortunately lost their jobs, and countless others who were eager to start their careers were deferred and shunted toward short-term positions they never envisioned. Even those whose jobs were spared were impacted, as compensation systems in many firms were overhauled to better fit the new world order.

There will be quite a few long-term effects from these changes, most of which, in this writer's opinion, will be beneficial for associates. This is not meant to trivialize the pain caused by a job loss or the effect of having compensation decreased, both of which can have serious consequences. Examining all those effects is outside the scope of this article.

However, there is one that is directly tied to career paths and it may be the most important one of all. This entails understanding that an associate must take charge of his career the day he starts, as he cannot blindly assume that his firm or others will protect him forever.

It is an interesting phenomenon that most junior lawyers enjoy the comfort of being treated equally. This starts in law school, where students recoil from overt competition, especially in their first year, and eschew separation among them. Some schools institutionalize this by forgoing numerical grades and class rank. This has traditionally carried over to life as an associate, especially in big firms, as young lawyers were neatly put into classes, where base compensation and bonuses were in tight ranges that barely caused significant differentiation.

This methodology created a false sense of security. Associates worked quite hard, but many did not take the extra time to consider what lay ahead for them or to prepare for it. This is partially understandable, as work continued to be put in front of them and their pay continued to increase -- so why should they worry, especially if their reviews were good?

What these lawyers didn't appreciate is that associates have a shelf life -- the protective bubble in which they worked was going to pop at some point, whether that was seven, eight or nine years down the line. Although some emerged from that cocoon as lawyers who had matured into partnership material, many others, despite being good lawyers, simply could not make that transition. Despite all their contributions, more junior lawyers -- who cost a firm less money -- were coming up from behind to replace them, which is a harsh reality that they didn't understand until it hit.

As such, if this recession teaches associates anything, it is the value of looking ahead and not just blissfully plugging along. Engaging in firm citizenship, being a team player and collaborating with others remains important, but those essentials should not obscure the need to also focus on where one's career is going and how to best improve it.

This will now confront associates head-on if they venture into the lateral market. Those who think they don't need to worry about this should think again, as the odds of anyone starting and finishing his career in one firm are infinitesimal in this era. Employment data show that most professionals change jobs every four and a half years, which, after this recession shakes out, is a number that is likely to go down even further.

In the short term, a lateral associate candidate is much less likely to be evaluated in the "check the box" manner of the past: school, graduation year, quality of existing firm and experience. Rather, scrutiny will be heightened, as the hiring firm (and its clients, who are really the driving force as they are providing the fees to pay an associate's salary) will be looking for someone who can immediately contribute and add value.

This means that associate candidates will need to point to specific experience that meshes with a firm's need, as opposed to just generalized exposure to certain aspects of a practice. Moreover, in a market glutted with unemployed associates, firms clearly have the upper hand and thus can hold out for true stars. As such, doing well and having experience are likely not to be enough to lateral as an associate.

Associates should be able to cite accomplishments that unmistakably separate them from others who are vying for the same opportunity. This actually is valuable for associates, since the examination is much the same as what they will face in making a lateral partner move later in their career (although a book of business will also be important then).

From an associate's perspective, making the move is also more complicated. In the past, firms had very clear identities -- international, national, regional, local, etc. Now, many of those lines are blurred, which requires a candidate to probe more carefully about the firm and where it fits.

Similarly, compensation was also easier to evaluate in years past, as class years and bonus triggers provided relatively clear demarcations among lawyers and criteria by which one could determine how one was likely to fare. Today, those neatly defined categories are still in flux, as quite a few firms are moving toward more performance-oriented compensation systems. This means that many associates really won't know how much they may make until they have been in the firm for at least one year.

There are several steps that you, as associates, can take to best prepare for an eventual move, all of which will be helpful even if your present firms are the ones you stay with until retirement. First, do not take the easy route by doing work that has no challenge or risk associated with it. An associate's attractiveness on the market, and to clients and partners in the evaluating firm, will largely be driven by the complexity of work and how well that work is performed. It thus behooves associates to volunteer to actually try a case (even if it is a "smaller" one that is more equipped for an associate), or take a more active role in a deal. Taking that initiative and performing well will separate you from your peers.

Second, no matter how busy you are, find the time to build a network. Keep in touch with college and law school classmates, in-house counsel (even if you haven't had a matter with them for quite some time), and general business contacts (even if they are not lawyers). This is the foundation from which you will get work and also is an important group of contacts who can help you in making a move.

Third, keep copies (both hard and digital) of all those articles, blog posts, newsletter pieces and other writings that you do for your firm. It is easy to remember these when you have just started, but, as time passes, you surely will forget about them as the pile grows. In this regard, it helps to periodically "Google" yourself, as this may produce some surprises as to where your contributions have appeared.

Finally, begin to keep a journal or other type of record of your key accomplishments. It may surprise you, but as your career progresses, you will also forget about many of these, so keep a log of them while the memories are fresh. These accomplishments will be essential not only in talking to a prospective firm, but in client pitches and in making your case inside of your firm when compensation review time arrives.

When you are ready to make the move, your evaluation today is not as simple as looking at a firm's size and pay scale. Rather, some of the questions you should raise, with the firm or for yourself, include the following:

• What type of experience are you likely to get?

• What type of commitment can the firm make that you will have a position (assuming you perform well) over the next few years?

• Do associates get business development support (and, if so, what type)?

• If your ultimate goal is to go in-house, just how well will this firm prepare you? Has the firm served as a springboard for others who made the move in-house?

This last point often cannot be asked of the prospective firm, but can be evaluated through due diligence of your own.

In many respects, the key going forward is to begin thinking like a partner. This will better prepare you for the future, will help you to become a better lawyer, and will make you much more valuable to your firm and clients.

Frank Michael D'Amore is the founder of Attorney Career Catalysts, www.attycareers.com, a Pennsylvania-based legal recruiting and consulting firm that focuses on law firm mergers and partner placements. He is a former partner in an AmLaw 200 firm, general counsel in privately held and publicly traded companies, and vice president of business development. He can be reached at fdamore@attycareers.com.