Tag Archives: Legal Recruiter

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Minding the Gap, Finding the Bridge, and Taking the Longview

The Lateral Link team recently held our company retreat in Las Vegas, and it occurred to me that law firm life can sometimes feel a little like being stuck in a Vegas casino. You are in a place where you can make really big money, but it can require working around the clock, even to the point where you aren’t even sure what time of day it is.  The upside is really good, but after a while you may start to feel an overwhelming desire to find an exit, get outside, breathe some fresh air, and regain a sense of balance in your life.

During these times, it can feel tempting to just draft your dream resignation email and press send!  In these moments, all of the good advice you have heard to never give up and push through the pain flies out the window.  Adding fuel to the fire, you may be at the point in your career where you have some savings built up so economically you can afford a break. You hear a little voice inside saying, “How great would it be to just quit and have time to figure out my next move without the constant stream of responsibilities and due dates hanging over me?”

As a former Biglaw attorney, I can tell you, this thought most certainly crossed my mind.  But as a legal recruiter, I have a whole new appreciation for what I call “minding the gap.”  As tough as it may be, there is undoubtedly value in avoiding any unnecessary employment gaps in your resume.

There is, of course, a huge carve out for time off for mental and physical health issues.  I am a strong advocate for mental health awareness and am in no way suggesting that sticking it out is the answer in all cases as everyone has their own particular mental health and/or medical considerations.  But barring these and other such extenuating circumstances, the simple truth is — it is significantly easier to get hired if you are currently employed.

Being employed gives you leverage — mind the gap.

In an ideal world, one would like to think that firms give candidates the benefit of the doubt when it comes to employment gaps in evaluating interview invitations.  Sadly, though, that is not how the process usually works.  Like many large companies, law firms sort candidates based on the limited information in their resumes and inevitably make assumptions based on this information.  And gaps in your employment timeline can unfortunately raise questions of reliability, focus, and drive.

Of course, you can overcome this presumption by telling a compelling story about the reason for your gap.  But, given the high volume of applicants for any one role, a firm may pass on your resume before even hearing the explanation.

Conversely, if you can manage to stay in your current role, you are only increasing your chances of getting an interview and avoiding unfair judgment.  This will let you walk into your interviews with greater confidence knowing that you can focus on your relevant experience and how you will make a seamless transition into the practice group given this background. 

And even if you are switching careers entirely, the fact that you are currently working will be reassuring to any potential new employers. Bottom line – this strategy allows you to play your strongest possible hand.

What happens when you are handed a gap you can’t mind? Build a bridge.

You might be thinking as you are reading — that is all fine and dandy when you are in control of minding the gap, but what happens when the “gap” is handed to you on a layoff platter??  This is where the story of the candidate who can’t be in the room to tell his/her/their story can have a different ending.  Enter stage left – your trusted legal recruiter.  

I know when some attorneys think of recruiters they think of stereotypical cold calls and emails that interrupt the workday, but one of my favorite parts of recruiting is being my candidates’ advocate and a source of career support for them.  I love getting to know each of my candidates personally so I can present her/him/they to a firm in a compelling way that paints a detailed picture of why this candidate — gaps included — would be an asset to that firm.  A gap can be an unknown, but when it gains a story bridge, it can transform into a stepping-stone to the candidate’s next destination.

Take the longview – it’s all part of the career journey.

I realize that all of this may be easier said than done. When you are feeling overwhelmed – whether it be from unrelenting work, roadblocks to business development, endless roads to partnership, or gaps handed to you — it can be really hard to focus on the bigger picture.  I too have felt lost in the chaos of the moment, but I have also learned over the years how important it is to try to take the longview.  In these times, I turn to my trusted friends and family to help me re-center and remember that my career is a marathon not a sprint.

Another way to help maintain perspective is to discuss your situation with your trusted recruiter.   A recruiter can develop a strategy for you to find your next role and counsel you as you go on the path together to get there.  Another favorite part of my job is that I get to be a legal industry data nerd.  Everyday my colleagues and I read and share intel from trusted legal news sources as to what is happening in the market.  We are also meeting with firms regularly to understand their specific needs each quarter.  We witness the trends unfold in front of us in real time and have all of this information to share with you to help you figure out your longview.  

For example, we are seeing and hearing about an uptick in hiring in the secondary markets right now.  You might be staring down a layoff in New York City, but it has been your longtime dream to move to Denver. Now might be the time!  How does dawn patrol skiing and logging into Citrix by mid-morning sound?  Carpe diem!  Feeling like you are ready for warmer weather?  Try Austin, another booming secondary market.  Whatever your frustration is – it might just be the path to something better.  All you need to do is figure out what that bridge is for you and how to get there.  We work with firms in all of these markets and can help you figure out what would be the best fit for you given both your legal and lifestyle interests.  

Your recruiter will also be able to advise you on which firms might be a better platform/culture match for you and your practice. Maybe you need a firm with less hours or a more flexible schedule? Maybe you need more billing rate flexibility? Maybe you need a more international platform to grow your book of business?  Maybe your business would thrive better at a boutique?  These are all questions that can be a fork in the road that leads to a new and exciting career trajectory for you.  Your recruiter can advise you on how they have helped past candidates in similar situations who have found success on a new path. 

Hearing about other lawyers who have made a change and ended up thriving in their new geographic market, tripling their book of business at their new firm, making non-equity partner from a counsel role, or overcoming an unexpected gap may help you see the light at the end of the tunnel you are in and help give you courage to embark on that next phase of your career path.  Mind as well have some fun and embrace the possibilities of where the path might lead you next! 

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Burned Out in Biglaw? Don’t Jump In-House Without Also Considering Boutiques

We all know that Biglaw practice can be a grueling experience. Some lawyers love practicing at the cutting edge and manage to navigate the lifestyle trade-offs over the long term. However, many Biglaw attorneys eventually find themselves feeling burned out and needing to escape. That feeling tends to be especially acute towards the end of the year, as associates confront the prospect of spending yet another holiday season burning the midnight oil. 

So with a new year on the horizon, it’s unsurprising that many candidates have been coming to me to discuss potential in-house opportunities. After all, in-house is the most widely discussed alternative career path. But before plunging headfirst into an in-house search, I find it helpful to dig a little deeper into what these candidates are trying to achieve. It turns out that many Biglaw associates who initially tell me they want to go in-house haven’t actually thought hard about the realities of in-house careers, whether they would be a strong fit for those roles, or if this would be the best fit in the long term. Fundamentally, they’re just seeking a more balanced lifestyle, and they see in-house as the easiest means to that end.

The thing is, in-house isn’t for everyone. To be sure, some lawyers thrive as in-house counsel. But many are disappointed to discover that the grass isn’t actually greener.

Fortunately, Biglaw and in-house are not the only options. Attorneys who are tired of Biglaw life should also consider a different alternative: boutique and midsize law firms.

The boutique and midsize alternative

I know what some of you are thinking. “Hold up. I’m trying to get away from billing hours. Wouldn’t a boutique mean working the same nights and weekends, but for less money?”

The truth is, in some cases, it absolutely would mean that. But not all. Attorneys working for boutique and midsize firms have a wide range of experiences. It’s an overstatement to say that Biglaw firms are all the same, but the basic business model is pretty standardized. In contrast, there is way more differentiation between boutique law firm models. The key is finding a boutique or midsize firm that offers the right model for you.

Some boutiques are designed very explicitly for Biglaw refugees: same high-level, interesting matters with highly-trained colleagues, but working fewer hours, for somewhat less pay. Exactly how many fewer hours and how substantial a pay cut will vary from firm to firm, and market to market. But note that these are essentially the same trade-offs that candidates confront when considering in-house roles. The most lucrative in-house positions tend to require almost Biglaw-level hours, whereas a true 9-to-5 in-house role will require a significant pay cut. (If it doesn’t, the job very likely won’t be 9-to-5!)

Evaluating boutique/midsize opportunities

What should you think about when exploring boutique or midsize roles? The basic mantra is: do not make assumptions. Talk to many people. Ask probing questions.

For example, when comparing opportunities, don’t just look at the number of billable hours required. The number alone won’t tell you very much—you need to dig deeper. How does the firm bill? What counts as billable? Are associates generally billing significantly more than the requirement? Are there additional marketing hours required or is the quoted hours number the full amount actually expected?  

Let’s imagine you are currently at a Biglaw firm that requires 1950 hours. You have an opportunity at a boutique or midsize firm that requires 1800. On the surface, that doesn’t sound too different. But there’s a good chance your current 1950-hour requirement does not fully capture how much you are working. It’s quite likely that you end up billing more than the requirement in most years on client matters alone—perhaps significantly more. On top of that, Biglaw firms often expect something like 300 hours on marketing, CLEs, and other work that isn’t billed to a client. Just as you might want to give a candidate considering your firm some additional context about the “1950 hours,” you would be well-advised to ask questions about your potential new firm’s 1800-hour target, so that you can make an informed comparison.

Speak with multiple associates and really probe to understand the reality of the lifestyle. Some boutique and midsize firms genuinely offer work/life balance. Others do not. Do your diligence to figure out the true nature of the opportunity presented.

A trusted recruiter can be an especially useful resource in this process. A recruiter who knows your market well has likely already placed candidates at the firms you should be considering. Take advantage of the inside knowledge and introductions your recruiter can offer.

If you manage to navigate the process successfully, it really is possible to end up in a sweet spot. Interesting work. Humane hours. Solid compensation. While in-house may appear to be the easy answer, if a better lifestyle is what you’re seeking, the boutique/midsize path is well worth your consideration.

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Want to Hire Your First-Choice Candidate? Don’t Delay!

Relative to 2021’s unprecedented level of lateral hiring, the market has cooled somewhat this year.  But it would be a mistake to conclude that law firms now have the upper hand.  By historical standards, we are still in a supply-constrained market, and there remains imperative for firms to optimize their hiring processes to avoid self-inflicted errors.  The biggest culprit in this category is unnecessary delay: the longer and more drawn out the interview process is, the less likely a firm is to hire its preferred candidate.  As the saying goes, “time kills all deals,” and this rings especially true in the world of legal hiring.

The consequences of delay

Law firms don’t intentionally design an inefficient hiring funnel.  But unless the process is managed with exceptional focus and discipline, it’s all too easy to end up in a bad place.  Small decisions that individually seem reasonable can collectively accumulate into a bloated process that alienates candidates.  Moreover, the longer the process, the greater the risk of losing a top candidate to your competition. 

A good example is the number of interviewers.  Firms have an understandable tendency to solicit input from a large cross-section of the candidate’s potential future colleagues.  On the surface, allowing more lawyers to weigh in seems perfectly reasonable, and even good for the candidate, as it theoretically provides greater insight into firm culture.  But by adding one more interviewer here and another one there, the firm can inadvertently end up with a daunting process that places an excessive burden on the candidate’s time.  Moreover, the larger the group of interviewers, the more difficult it is to compile feedback internally, and the greater the potential for delay.  

Firms tend to underestimate candidates’ propensity to abandon a slow hiring process.  But we at Lateral Link see this happen routinely.  The vast majority of candidates we work with tell us that the most frustrating part of their job search is the long wait after interviews to obtain feedback from a prospective new employer.  If a candidate does not receive feedback within a week or two, they question a firm’s continued interest, and in turn, they lose interest in the firm.  I recently worked with an attorney who was so offended by a firm’s long drawn-out process that they wrote the firm off completely and pursued other opportunities.  By the time the firm got back to me expressing continued interest, I had to sadly let them know the candidate had accepted another role and was off the market.  You snooze, you lose!

The consequences of a poorly managed process tend to extend beyond the individual candidate who goes through it.  Lawyers talk to their friends about their experiences, and firms that drag out the hiring process risk reputational damage.  It’s bad enough losing a candidate in the context of one particular search, but inadvertently dissuading potential future candidates from applying is even worse.  What’s more, a firm is losing money with every hour that goes by with a job vacancy.  As we all know, law firm attorneys are profit generators, so a limited number of attorneys doing the work translates to a ceiling on revenue.  And with attorneys’ hourly rates where they are, that’s literally thousands of dollars in lost revenue every day.  There’s also the negative impact a job vacancy has on a firm’s current employees. When a vacancy has been open for an extended period of time, the extra workload inevitably falls on others within the team.  This added responsibility can lead to burnout, stress, and low morale. That in turn has a direct impact on retention rates as the burned out team members look for greener pastures with increasing urgency.

Tips for improving efficiency

So what can firms do to improve their efficiency and make it more likely that they’re able to hire their first-choice candidate?  It isn’t rocket science.  Think ahead.  Stick to the plan.   Be efficient.  Communicate frequently.  And quickly make the offer.

Sometimes long hiring processes are the result of misalignment in the firm about the type of candidate desired, or even about whether to hire at all.  Any such disagreements must be resolved before launching the recruitment process.  If there isn’t alignment among all relevant stakeholders about what it is the firm needs, don’t post a vacancy as a means of forcing the conversation.  Have the debate internally and come to a collective decision.  Only then should you solicit applications.

At the beginning of the process, map out precisely who the candidate is to meet with and book all interview slots in the interviewers’ calendars.  If there is a high risk of an interviewer not being available in the necessary window, find a substitute interviewer ahead of time.  Don’t let foreseeable delays derail the process.  In addition, avoid the temptation to add extra interviewers partway through.  Sometimes the logic for doing so really is compelling, but this should be an exceptional situation.  Have the discussion upfront about who needs to participate, and stick to the plan.  Then solicit feedback from the interviewers immediately after the interview while the conversations are fresh in their minds. 

If the process is unreasonably long, the firm will lose candidates.  But at the margin, proactive communication can be highly effective in keeping a candidate engaged.  Tell candidates upfront what the process entails and how long it’s expected to take.  If an unexpected complication arises, inform the candidate and/or recruiter promptly.  Give a real explanation for the delay, along with assurances that the firm remains interested, and be sure to check in regularly to keep the candidate warm.  But by no means should you string a candidate along.  Job seekers strongly dislike that, and it can really sour the relationship before it even starts.

Finally, once the interviewers have collectively identified a first-choice candidate, make an offer as soon as you possibly can.  It’s not a problem if the offer has various contingencies, such as conflicts and background checks.  But a fast offer is a critical signal to the candidate that the firm is serious about making the hire.

Take advantage of what you can control

Many elements of the hiring process fall outside a firm’s control.  At the height of the boom in 2021, when mid-level corporate lawyers seemed almost impossible to find, there was no magic wand a firm could wave to increase candidate supply.  But firms do control the efficiency of their hiring process, and making an active effort to improve it can lead to a material improvement in the firm’s recruiting success. One law firm we work with regularly has mastered this process and typically makes associate hiring decisions within a matter of two to three weeks.  They know what they want in a new hire, and when they find it, they don’t delay.  Everyone is busy and no one has time to waste, so fast-tracking the hiring process and making it as efficient as possible will go a long way with prospective employees.  

If your firm or law department has questions about how to improve the lateral hiring process and eliminate some pain points, please don’t hesitate to contact me or any of my Lateral Link colleagues.

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Why You Shouldn’t Wait Until January to Start a Lateral Search

With a month to go until Thanksgiving and two months until Christmas, I’ve lately been having similar conversations with many law firm associates. They’re interested in exploring a lateral move, they tell me, but it wouldn’t make sense to start the process this late in the year, right? Wrong!

In fact, now is the perfect time to start looking for lateral opportunities. Because so many candidates have the misconception that it’s best to wait until January, those who begin the process now will get a jump on the competition. And the odds are typically quite good that you won’t end up starting at your new firm until 2023, anyway.

Allow me to address some of the main objections I hear to starting a fall lateral search.

Wouldn’t it be weird to start a new job in December?

Many candidates envision themselves starting at a new firm in the midst of the holidays and don’t like that idea. But it’s important to understand that December start dates are typically less common than January start dates. Barring a scenario where your new practice group is exceptionally stretched and needs help as soon as possible, firms will typically be fine to have you start in the new year. All else equal, the new firm would rather that your current firm pay your 2022 bonus, so a January (or even February) start tends to work well for everyone.

What about my bonus?

Having already accrued most of their hours for the year, candidates are naturally averse to doing anything that would jeopardize their bonus. But this really should not be a concern. One of two things will happen. In the event the new firm is desperate for you to start immediately, it will make you whole on the bonus you sacrifice by leaving your current firm. More likely, as discussed above, the new firm will make it possible for you to collect your bonus from the current firm and then make the switch. There is an obvious financial incentive for them to do so.

Will firms even want to interview late in the year?

Candidates often assume that everything will slow down towards the end of the year, so if they apply now they risk entering a dead market. Although it’s certainly true that few firms conduct interviews in late December, the fall is a different story. New openings continue to arise in this period, and firms will also have unfilled searches from earlier in the year. With relatively few new candidates joining the market, there is a real opportunity to stand out in a window when firms are absolutely still looking to interview.

I’m tired. Can’t I just wait until January when I’ll have more energy?

It’s obviously important that you project a positive and energetic attitude when interviewing, so this is definitely a factor to consider. However, I find that candidates who are new to the lateral search process often imagine the experience will be more burdensome than it actually is. If you are feeling a little overwhelmed and you aren’t sure you’re up for a search right now, it’s still worth having an initial conversation with a recruiter. There is a randomness to when opportunities arise, especially if your practice is more specialized. It may happen that the recruiter knows about a current opening that could be an especially good fit for you. And you might find that hearing about that opportunity energizes you to a degree that you aren’t feeling now. Regardless, a 20-minute phone call will give you valuable individualized insight based on your specific practice area and market.

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Navigating Your Performance Review

Bonus season is around the corner!  But first, associates need to make it through performance reviews.  Few people look forward to the review process.  Some find it stressful — after all, these can be complicated conversations.  Others may be tempted to dismiss it as pointless, considering that many firms award bonuses based primarily on class year and/or hours billed.  But even if you’re at a firm where performance reviews are not a critical compensation driver, you should treat the review process as a valuable opportunity to elicit helpful feedback.

Instead of viewing your performance review as something to be endured, take control of the process to the extent possible.  Put in the time to prepare fully, clarify the feedback you receive, and reflect on the implications for your broader career goals.

Prepare for the review conversation

It’s likely that your firm will ask you to do some form of self-evaluation ahead of the review process, but regardless of what is formally expected, preparation is critical to achieving a productive conversation.  Questions to ask yourself include:

  • Did you make your hours?
  • What sort of feedback have you gotten along the way?
  • Did you have a trend line this year of improvement, or did you have the same problems all year?
  • Did you successfully address the feedback you received in last year’s review?

Identify your weaknesses, and think about how to frame them constructively.  You want to go into the review conversation prepared to talk about what you learned and what you’ll do differently next time.  Demonstrating that you have a specific plan for future improvements helps your evaluator look past any bumps.

Ahead of the review, be sure to update your deal sheet or representative matters list!  In case you don’t already have a deal sheet, see how to make one here.  Updating your deal sheet will help you review your work and prepare to discuss both victories and setbacks.  It’s too easy and too common for a supervisor to forget about things you thought were really important, so don’t rely on your reviewer to generate a comprehensive list.  Having your deal sheet at your fingertips will make sure you’re prepared to advocate for yourself.

Listen carefully and seek clarification

During the review conversation, remember to take notes as best you can.  You can’t expect to remember it all, especially if you’re anxious or you get feedback that surprises you.  Detailed notes will be helpful if you need to follow up on something later.  

Ideally, the feedback you receive will be specific and actionable, but it’s possible it will be generic and unhelpful.  If so, it’s on you to ask granular questions to elicit more precisely what the reviewer is talking about.  This applies to either positive or negative feedback, but it’s especially critical in situations where the reviewer is expressing concern about your performance.  Valuable questions to ask include:

  • Am I on track for partnership?
  • What do I need to do this year to get there/stay there?
  • What specific skills would you like to see me acquire this year?
  • Are there any weaknesses I need to shore up?
  • Now that I’m a Xth year associate, how do you see my role on deals in the coming year?  In mentoring juniors on our team?  In business development?

Ask for clarification, especially about critiques, but don’t be defensive.  Remember: “curious, not furious.”  Achieving this balance can be really challenging for us over-achieving lawyers.  You may find it helpful to practice reacting to feedback in advance, ensuring you enter the review conversation with some default responses.  Ask A Manager has some great advice on this, as well as scripts for if you disagree with the criticism.  For example: “I’m glad you’re telling me this.  I’ve been letting some deadlines on this project slide because I had thought that projects x and z were higher priorities and was more focused there.  But am I looking at this wrong?”

Keep in mind that it’s perfectly acceptable to ask for a follow-up conversation!  You may find that you ask more effective questions after having had some time to gather your thoughts.  Ahead of the follow-up, draft a list of questions digging into the specifics of how the firm wants you to perform in the next year.

Reflect on your broader career trajectory

Although the review process is principally about your performance in your current role at your current firm, don’t forget to reflect on the bigger picture.  The end of the year is a great time to consider whether your firm remains the best setting to achieve your career goals.  Are you getting the work you want?  How do you feel about your professional development?  Have you found your people at this firm?  Are you content?

If not, keep in mind that other firms would be happy to have you.  I’d love to help you think through your options or connect you with one my colleagues in your area.

Good luck!

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How to Survive an Economic Downturn

With talk of recession now impossible to avoid, many lawyers have started to wonder about their job security. It’s worth emphasizing that actual hiring data still looks healthy by historical standards. Nationwide, lateral moves in Q3 2022 were down more than 20% from the Q3 2021 level, but keep in mind that the 2021 market was unbelievably active. If we use Q3 2019 as a more normal base case, we find an almost 10% increase in lateral moves in Q3 2022. But even if widespread pain is not yet evident, there is much anecdotal discussion of so-called stealth layoffs. Additionally, at least one firm has deferred start dates for its incoming first-year associates, reviving an approach that was widespread in the Great Recession.

Making the conservative assumption that conditions will get worse before they get better, now is the time to assess your situation and take steps to position yourself to survive a downturn. Here are some things to consider.

1. Are you a restructuring lawyer? Can you become one?

There’s nothing like a countercyclical practice to help you ride out a recession. If you do happen to be a restructuring lawyer, you should be worried more about a coming deluge of work than about job security. But assuming you haven’t worked in bankruptcy, now may be the moment to wedge your way in. In the old days, corporate lawyers tended to have broader skill sets, with bankruptcy being one component of a more diversified transactional practice. Even though modern law firms tend to be all about specialization, this historical legacy can still serve as an inspiration. If you’re already in a corporate or finance practice, call up a restructuring partner and ask if the group needs help. With the next wave of restructurings presumably on the horizon, if you can get in the door now, you might find yourself in the enviable position of having plenty of work.

More broadly, you may want to think about retooling, if not to restructuring then to another more recession-resistant practice. This is especially worth considering if you are a junior corporate associate who never particularly liked your work. The best time to retool is when your group is not busy — a slowdown in deals might present an opportunity to escape.

2. Assess your firm: is it well-positioned for a downturn?

In thinking about your firm’s relative strength, it’s helpful to consider the past, present, and future. As the disclaimer goes, past performance is no guarantee of future results. But if your firm is known to have conducted stealth (or outright) layoffs in the last recession, that’s probably a relevant consideration.

The present is relatively easy to assess. Are you busy? Is your group busy? What about your friends in other groups?

The future is inevitably murkier, but you can still make some educated guesses. Is your firm unusually reliant on corporate M&A and capital markets work? Bad sign. Is it well-diversified, with strong offerings in litigation and restructuring? Good sign.

3. Consider your alternatives

Keenly observing conditions at your current firm is an important first step, but you also need to contextualize against the rest of the industry. Talking to friends at other firms is a good idea. But for deeper insights informed by data, having a relationship with a trusted legal recruiter can be invaluable. We spend all day talking to people at various firms, so we’re always informed about how the market is trending. And we have access to extensive proprietary data specific to individual markets and practices. We know which firms are growing and which are losing people to the competition. As stealth layoffs pick up, you can be sure that seasoned recruiters will be among the first to know the real story.

If you learn that your firm is underperforming relative to peers, or that it’s perceived to be at greater risk in a downturn scenario, you’d be well advised to investigate whether firms in a stronger position may be seeking someone with your skill set. Naturally, a trusted recruiter can help with that diligence as well.

4. Watch the partners

Even in a good economy, most partners are open to hearing offers from rival firms. But with conditions deteriorating, it’s especially safe to assume that your partner is taking calls. Many partners feel the ground shifting under their feet, and they are just as worried as associates about potentially being pushed out. To the extent there may be concerns about the health of the firm overall, partners will be especially eager to flee: nobody wants to be the last person on a sinking ship. If you notice an uptick of partner turnover at your firm, it could be a sign that you too should look elsewhere.

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Being Smart About Utilization and Realization: How to Improve Your Contribution to Firm Profitability

Law firm economics can be a little opaque for associates.  Partnerships typically aren’t great at explaining the business of law to non-partner firm members, and associates naturally focus their efforts on learning to be an effective lawyer.  But like it or not, a law firm is ultimately a business, and if you aspire to have a long-term career in private practice, you need to understand the drivers of firm profitability and how you fit into the equation.  In particular, you need to understand how to manage utilization and realization.

Utilization and Realization drive Profitability

Utilization is the proportion of your available time allocated to billable matters.  Specifically, it’s the number of billable hours you work divided by the number of “available hours,” times 100.  Let’s say your firm requires 2000 hours (your “available hours”), your billable hours are 1800 for the year, and you’ve got 300 in non-billables.  Your total hours tracked exceeds the 2000-hour threshold, but non-billables don’t factor into utilization.  Therefore, your utilization rate is 90% (1800/2000).

Realization is the percentage of recorded time that is actually paid by the client.  When your partner cuts your bills or offers the client a discount or write-off, that reduces realization.

Why do these metrics matter?  Simply put, firm profitability depends on them.  Here’s a simplified law firm profitability equation:

Profitability = Margin x Realized Rate (the “true” rate the client is paying) x Utilization x Leverage.

As an associate, you have no control over margin or leverage.  (Even as a partner, your ability to improve these metrics is constrained by market realities: for example, some practice areas are inherently lower margin than others.)  Conversely, although utilization and realization aren’t entirely within your control, it’s absolutely possible for you to influence them.

Track all your time, and resist the urge to cut it

Nobody enjoys billing, but accurate time tracking is a prerequisite to strong utilization.  If you’re not billing daily, you are likely failing to capture time that you would have remembered to bill if you had been more diligent about regular time entry.  Chronic underbilling is a major threat to law firm profitability, so you should do your best to ensure that you aren’t part of this problem.  (Of course, daily billing also guards against the risk of inadvertently overbilling, the consequences of which are even worse than underbilling!)

After you’ve accurately captured your billable time, do not cut it, even if you are uncomfortable with the pace of your work.  Partners need to know how long things are really taking, and the decision to cut a bill is theirs, not yours.  If you’re embarrassed about how long it takes you to complete a task, talk to someone about whether it truly is an issue and, if so, what steps you can take to improve your efficiency.

Knowing the accurate utilization rate within a department also helps partners decide when to request additional attorneys, and it’s a key input for firm management when approving requests to expand a group.  If everyone is underbilling, department leadership may not realize how close their lawyers are to burning out and potentially leaving the firm.

Remember that proper time tracking extends to non-billable hours also.  Your firm needs to know how much time you’re spending on administrative or other non-billable matters.  They may be tracking whether their workflow is efficient, if they’re using the right software, etc.  Useful analysis of those factors depends on you accurately reporting your non-billables.

Be smart about the wording of your bills

Healthy realization depends not just on how much time you spent on a task, but also on how you describe what you did.  Be aware that many different parties may review your bills: partners and clients, certainly, but potentially also courts or other third parties.  Take care to bill with the specificity that the client or firm requires (without including anything privileged or embarrassing, please).  Appropriately specific wording will make it easier to justify the bill for your work, creating the conditions for better realization.

Ensure aligned expectations

If partners are routinely cutting your hours, that is an indicator of misaligned expectations.  You should proactively communicate with partners about their expectations, so that you avoid incurring time that won’t be collected.  Find out how long the partner expects a project to take, and do your best to stay in that ballpark.  In the event the partner has an unrealistic view of what’s possible, have a conversation about it as early as you reasonably can.  You’re managing their expectations so they can manage the client’s expectations.  If you perceive a misalignment, it’s your responsibility to speak up and make an effort to resolve it.

Consider the bigger picture

So why am I sharing this, as a recruiter?  Managing utilization and realization makes you more productive and efficient: you’re a more valuable associate.  But this isn’t just about you.  It’s also about how much work the firm has: underutilization can result from not enough work to go around.  Conversely, understaffing can lead to overutilization.  And your personal utilization rate reflects your quality of life.  If your utilization is very high, then you’re likely overworked!

If this has got you thinking about your role in your firm, or your practice group, then let’s chat.

Featured, Market News

At the Pinnacle of the Profession: Latinos and Latinas Making Strides in Am Law Firm Leadership

Last week marked the beginning of National Hispanic Heritage Month, which extends from September 15 to October 15. Now is the perfect time to discuss the contributions of Latinos and Latinas in Biglaw and, in particular, to highlight our community’s representation in top Am Law firm leadership roles. As a Cuban-American, this is a topic close to my heart. Undoubtedly there is still much room for improvement, but the good news is that we increasingly have reason to celebrate!

Over the past couple of years, Am Law 100 firms have redoubled their efforts to increase diversity in their ranks. And when it comes to Latino and Latina lawyers, we are starting to see progress at various levels. The American Lawyer’s 2022 Diversity Scorecard indicated the most significant year-over-year improvement since 2001. Large law firms hired 1.5% more Hispanic associates, which was a greater rate of increase than for any other racial/ethnic group. At the partnership level, there was a 2.6% increase in Hispanic/Latino equity partners from 2019 to 2020.

But the most visible achievements have come at the top of the Biglaw pyramid, with an increasing number of Am Law firms now featuring Latino or Latina managing partners. Let’s take a look at these luminaries whose success is proof that the pinnacle of the profession is open to Latino and Latina attorneys, notwithstanding the inevitable challenges.

Yvette Ostolaza — Chair of the Management Committee, Sidley Austin

As the sole Latina at the helm of an Am Law firm, Yvette Ostolaza’s journey is particularly inspiring. Born in Miami to Cuban parents, Ostolaza attended the University of Miami School of Law and first made partner as a litigator in the Dallas office of Weil, Gotshal & Manges. She joined Sidley in 2013 as managing partner of the Dallas office and served as global co-leader of Sidley’s litigation practice before her elevation to Chair of the Management Committee in April 2022. She was recently honored by the Hispanic National Bar Association with the Mari Carmen Aponte Award, which recognizes a “Latina lawyer who is the first to break a glass ceiling.”

Miguel A. Zaldivar, Jr. — CEO, Hogan Lovells

Born in Venezuela to Cuban refugee parents, Miguel Zaldivar did not emigrate to the United States until adulthood. After graduating from the University of Miami School of Law, he joined Hogan Lovells and set about building a Miami-based Latin America project finance practice. As a partner, he became co-leader of the Hogan Lovells Infrastructure, Energy, Resources and Projects practice. In 2018, he relocated to Hong Kong to manage the firm’s 14 offices in Asia and the Middle East. Zaldivar began serving as Hogan Lovells CEO in 2020.

Frank Lopez — Managing Partner and Chair-Elect, Paul Hastings

Currently in the number-two role at Paul Hastings, Frank Lopez will assume the top leadership post (Chair) on October 15. The New York securities lawyer and former investment banker only arrived at the firm in 2019. A graduate of Georgetown University Law Center, Lopez spent 15 years at Proskauer Rose before jumping to Paul Hastings. In his relatively short Paul Hastings tenure, Lopez has succeeded in raising the firm’s profile in leveraged finance and has played a key role in attracting lateral partners from firms such as Skadden and Covington & Burling.

Wally Martinez — Managing Partner, Hunton Andrews Kurth

Unlike his colleagues on this list, Wally Martinez’s ascent to the helm of a major law firm is not a recent development. Born in Manhattan and raised in New Jersey by Cuban emigre parents, Martinez graduated from the University of Pennsylvania Law School. He first made partner at Holland & Knight in Miami before leaving to found a new Hunton & Williams Miami office in 1999. Martinez served briefly as general counsel at Diageo North America before returning to Hunton & Williams as managing partner in 2006. He has remained at the helm through the merger with the former Andrews Kurth Kenyon. For many years, Martinez was the only Latino leading an Am Law firm, so the fact that he now has significant company in the Am Law leadership ranks is especially noteworthy. 

A rising generation of leaders
The four leaders profiled above occupy particularly visible roles, but it is worth acknowledging in addition the rising generation of Latino and Latina lawyers poised to ascend to top posts in the coming years. To take just one example of a Latino partner to watch, Eduardo Fernandez currently serves as co-head of the European Committee at Willkie Farr and co-managing partner of the Paris office. A native New Yorker who received his J.D. from NYU, Fernandez began his career as a Wilkie Farr associate in New York. He is now recognized as one of the leading M&A and private equity lawyers in France.

Featured, Tips

How to Help Recruiters Alert You to Relevant Opportunities on LinkedIn

It won’t come as a surprise to you that virtually every recruiter uses LinkedIn to source candidates. You’ve likely received at least a few unsolicited LinkedIn messages from recruiters. Chances are, some of those messages were for positions that do not align with your practice area. This can be a source of frustration, leading some lawyers to become pretty jaded about the general notion of recruiter outreach.

But here’s the thing. If your LinkedIn profile doesn’t clearly communicate your skills and specific experience, recruiters are left to guess. The best way you can improve the quality of recruiter outreach is to maintain an informative, up-to-date profile. This gives recruiters quick and valuable insight into your background, enabling us to contact you if there’s a strong match and, conversely, to move on if you’re obviously not the right candidate. I can’t promise that a more informative profile will entirely solve the problem of messages for irrelevant roles, but it will definitely help.  

Introduce yourself effectively

The “intro” portion of your LinkedIn profile (the top section) is in many ways the most important. This is your opportunity to communicate crisply who you are and what you offer. The best way to enable a recruiter to find your profile is by inserting informative keywords into the “headline” (the line immediately below your name). Describing yourself simply as an “Attorney” is a missed opportunity: instead, tell us what type of attorney you are. The more specific, the better. For example, “Litigation Attorney” is better than “Attorney.” But the best is  a headline like “Litigation Employment Attorney Specializing in Discrimination and Retaliation.”

Double check that your location is current. Many lawyers moved cities during the pandemic, and some have neglected to update their LinkedIn profiles accordingly. It only takes a moment! While you’re at it, consider selecting the “open to opportunities” setting that is only visible to recruiters. This will confidentially communicate to recruiters that you’re receptive to relevant outreach.

Photos are another critical element of an effective intro section. Adding a photo increases the likelihood that a potential contact will accept your connection request by 9x. In addition to uploading a professional profile photo, make sure to include a background photo. Your background is a visual representation of your personal brand and is one of the first things recruiters will see when they visit your profile.

Fill in the details

A basic rule: if it’s there, fill it in. The more complete your profile, the better. Obviously, you have to fill out Experience and Education. But beyond that, add some content to Skills (in case recruiters are filtering on those keywords) and your licenses & certifications (you’re a member of a bar, right?). Other optional sections can help give your profile a more personal touch. Are you bilingual? Fill out the Languages section!

Ensure that your Experience section is more informative than a simple list of titles. The nice thing about LinkedIn, in contrast to a resume, is you don’t have to worry about fitting all the content onto a printed page. So go ahead and include a couple of bullet points about each of your past positions to indicate specifically what you did and what you achieved. Naturally, this will change over time as you advance in your career and accomplish new things, so don’t just fill in the Experience section once and forget about it — be proactive about keeping the description of your current role up to date. As a matter of style, note that it’s perfectly appropriate to write in the first person on LinkedIn, in a way that would be uncommon on a resume. Using “I” statements helps to humanize you.

Education should be fairly straightforward, but do keep in mind that this is not the place to be modest. If you graduated with honors, say so. You may also wish to list your GPA and/or class rank, especially if you’re early in your career, with limited work experience.

Stay active

At a minimum, you should log into LinkedIn weekly to check your messages. If you aren’t in the habit of logging in regularly, you can also put your contact info (personal email and/or cell phone) on your profile, enabling recruiters to contact you through those alternative channels.

As an optional bonus, consider creating content on LinkedIn. This will boost your ranking in search results and can be a great way to get noticed — not just by recruiters, but maybe even by law firm partners directly. Being active on the platform builds credibility, demonstrating that you know your area of law and are comfortable speaking about it publicly. This is by no means required, but when you do it well, it certainly helps!

Check your search appearances 

Be sure that you are getting noticed by the right audience. To do this, go to your profile page, look under the Analytics heading, look for the magnifying glass icon, and click on “search appearances.” This lets you see how often you appear in search results. In addition to the number of search appearances, it also shows you the keywords you were found for. If these do not align with your current practice area or industry, consider adjusting your headline and intro section until you are appearing in more targeted searches. 

Have fun 

Finally, have fun. Networking and being open to new opportunities can be intimidating, but LinkedIn makes it relatively simple and stress-free. Treat it as a no-pressure environment for you to be yourself and engage with like-minded people.

Featured

The Future Rainmakers Award: Ten Associates Poised For Greatness

At Lateral Link, we’re always searching for talent — scanning the market for future legal stars is the core of what we do. Today we are delighted to announce a new initiative to spotlight associates on the rise: the Future Rainmakers Award! This award recognizes associates who are on a path to future outsized success in the legal profession. This is a quarterly initiative, so stay tuned for more winners later in the year!

And now, without further ado, we present our first ten Future Rainmakers…

Aashiq Jivani 

Aashiq is an associate in Sidley’s Houston office, where he is a member of the Energy practice. He graduated from Harvard Law School.

Adrienne Jackson

Adrienne is an associate in Weil’s Corporate department, based in Silicon Valley. She graduated magna cum laude from Duke University School of Law, where she received the Christine P. Richards Scholarship.

Evan McLaughlin

Evan is a Real Estate associate in Greenberg Traurig’s Chicago office. He received his J.D., cum laude, from Chicago-Kent College of Law, where he was Notes and Comments Editor for the Chicago-Kent Law Review.

Jaleel Chandler

Jaleel practices general corporate and securities law in Cooley’s Palo Alto office. He graduated from the University of California, Berkeley School of Law.

Matthew Mrozek

Matthew is a member of Debevoise’s Real Estate group, based in New York. He received his J.D., cum laude, from New York University School of Law, where he was an Arthur T. Vanderbilt Scholar.

Nicole Phillips

Nicki is a Real Estate associate in Jones Day’s Atlanta office. She received her J.D., magna cum laude, from Duke University School of Law, where she was Articles Editor for Law and Contemporary Problems.

Leon Sunstein

Leon is a member of Skadden’s Complex Litigation and Trials practice, based in New York. He graduated magna cum laude from the University of Pennsylvania School of Law, where he was Articles Editor for the University of Pennsylvania Journal of Constitutional Law.

Dmitry Dobrovolskiy

Dmitry is a Tax associate in Davis Polk’s New York office. He received his J.D., cum laude, from Harvard Law School.

Tae Kim

Tae is a Litigation associate at WilmerHale, based in Boston. She graduated cum laude from Harvard Law School, where she was Article Editor and Submissions Committee Member for the Journal of Law and Technology.

Tiffany Kwok

Tiffany is a Corporate associate in Kirkland’s Bay Area office. She received her J.D., cum laude, from Harvard Law School.