Partner hiring market stays competitive heading into autumn
Firms continue to pay up for laterals in disputes, restructuring and energy, even as some practices quietly trim less profitable teams to protect partner profits.
The market for lateral partners remains keenly competitive as firms head into the autumn, with recruiters reporting sustained demand for practitioners in disputes, restructuring, energy and regulatory work. These are the areas that have carried firm revenues through a quieter spell for transactions, and management teams have shown a willingness to pay handsomely to secure the individuals and teams who can bring portable followings of work.
The pursuit of talent has kept upward pressure on partner remuneration, particularly for those able to demonstrate a strong and transferable book of business. Firms with international ambitions have been especially active, using lateral hires to build out practices in target markets rather than waiting years to grow them organically. Some have accompanied high-profile arrivals with guaranteed packages, a practice that carries risk if the anticipated work fails to materialise.
At the same time, the picture is not uniformly expansionary. Several firms have moved to manage their partnerships more tightly, easing out underperformers and trimming teams in areas where demand has softened. The discipline reflects a broader focus on profit per equity partner, the metric by which firms are so often judged and by which they compete for the best laterals. Protecting that figure has, in some cases, meant difficult conversations with long-serving partners.
Promotions from within have continued alongside the external hiring, with the new partner rounds again drawing scrutiny over the balance of men and women reaching the equity and over the routes available to lawyers who do not fit the traditional mould. Firms have faced ongoing questions about diversity at senior level, and progress, while real in places, remains uneven across the profession.
For candidates, the conditions are favourable in the busiest practice areas, where a strong following can command a premium. For firms, the challenge is to keep hold of their best people while resisting the temptation to overpay for arrivals who may not deliver.