In 2023, Laura Leopard’s whitepaper, Building a Lasting Legacy: Empowering Organizations Through Strategic Succession Planning, spotlighted a critical challenge facing the legal industry: the growing strain on law firm succession planning. Driven by delayed retirements among senior managing partners, this dynamic has complicated the partnership path and placed additional pressure on firms to attract and retain mid-career lateral partners. One year later, emerging trends in partner migration, retention data, and new survey insights reveal how firms are addressing—or failing to address—these hurdles.
The State of Succession Planning
Leopard Solutions’ 2023 analysis revealed that the path to partnership has become significantly longer, particularly for entry-level attorneys at top U.S. firms. According to Leopard Solutions’ data, entry-level associates in 2022 took 99% more days to make partner compared to 2012, while the timeline for lateral hires grew by 68%. This disparity underscores firms’ increasing reliance on laterals to fill leadership gaps—a necessity heightened by the shrinking pool of mid-level partners.
Compounding the issue, the January 2023 survey found that only 69% of law firms reported having a formal succession planning strategy. While this majority reflects progress, the remaining 31% risk losing client trust and talent stability during leadership transitions. Alarmingly, one-third of respondents cited the prolonged tenure of senior leaders as a deterrent to attracting lateral talent.
Over the past year, a demographic shift in managing partners has begun to reshape the succession landscape. Leopard Solutions data shows a significant decline in managing partners aged 61 and older, while the cohort aged 51 to 60 grew by 10%. Younger leadership models appeal to prospective lateral hires, potentially signaling a shift toward more agile and future-focused firm cultures.
Lateral Partner Trends: A Snapshot
Leopard Solutions’ proprietary data and a collaborative survey with Wisnic Enterprises shed light on lateral partner hiring trends through 2024, revealing distinct patterns in both AmLaw 200 and non-AmLaw 200 firms.
- Overall Growth: Lateral hiring has surged across the board. From 2021 to 2024, AmLaw 200 hires rose by 12%, while non-AmLaw 200 firms saw a staggering 53% increase.
- Litigation Leads: Litigation remains the dominant practice area, with lateral hires peaking at 875 for AmLaw 200 firms in both 2023 and 2024. Non-AmLaw firms also showed dramatic growth in this area, nearly doubling their litigation hires since 2021.
- Corporate and Specialized Practices: Corporate hiring, influenced by fluctuating economic cycles, remains robust, while banking, IT, and labor & employment practices show steady growth, reflecting evolving client demands in technology, financial regulation, and workplace litigation.
Interestingly, mid-sized and boutique firms are emerging as formidable competitors in the lateral hiring market. Non-AmLaw 200 firms nearly closed the gap with their AmLaw counterparts in 2024, with hires reaching 2,375 versus 2,475 respectively. This trend suggests that smaller firms are successfully leveraging factors like flexibility, niche expertise, and competitive compensation to attract top talent.
Retention Challenges
Retention remains a persistent challenge, particularly in the critical early years of lateral integration. Leopard Solutions’ data reveals a steep attrition curve:
- Year 1 Exit Rates: 100% of lateral partner departures occur within the first year.
- Year 2 Decline: Retention improves slightly, with exits dropping to 90%.
- Year 3 Plateau: By Year 3, the exit rate falls to 50%, and it stabilizes significantly by Year 5.
These statistics underscore the importance of robust onboarding and integration strategies to maximize the return on investment in lateral hiring. Firms that neglect these processes risk eroding the gains of their recruitment efforts.
Recommendations for Successful Lateral Integration
Dedicated transition strategies are essential for law firms to thrive amid the competitive landscape of lateral hiring. Leopard Solutions advocates for a comprehensive approach centered on collaborative teams to support new hires:
- Lateral Partner Sponsor: A senior partner or practice group leader who fosters connections and ensures alignment with the firm’s goals.
- Lateral Integration Manager: A business professional tasked with equipping lateral hires with resources and facilitating their adjustment.
- Mentorship: Assigning a mentor who embodies the firm’s culture and offers guidance on navigating internal dynamics.
- Business Development Support: Leveraging marketing and BD professionals to help laterals build their client base and reputation.
- Data-Driven Benchmarking: Tracking retention and performance metrics to identify and address problem areas in real-time.
Firms must also diagnose systemic challenges—whether tied to group leaders, office dynamics, or specific practices—that impede retention. Even the best hiring efforts may fail to yield long-term benefits without targeted solutions.
One year after we published the analytical insight report Building a Lasting Legacy, the challenges of succession planning and lateral partner integration remain critical issues for the legal industry. While some progress has been made, significant gaps persist, particularly in retention and the uneven impact of leadership transitions. By adopting structured integration strategies and prioritizing data-driven decision-making, firms can position themselves for sustainable success and maintain their competitive edge in an increasingly dynamic legal landscape.
