One bad apple: The rise of partner vetting at law firms
Law firms love to make hiring announcements to showcase the ‘big shot’ partners they’ve landed from one of their competitors. However, in a sector where the top line has become even more competitive and reputation is key, extra checks into candidates have become more prescient.
Lateral hires can be crucial to a law firm, from potentially bringing in someone with a recognised name in the area of law they practice, which can drive new clients, to bringing in someone with legal skills the firm wants to expand upon.
The numbers don’t lie: across the legal market in 2024, 546 partner moves were recorded, as recruiter Edwards Gibson revealed in its annual report in December, showing figures have increased year-on-year since 2022.
One of the reasons behind the surge in the hiring market is the US law firms in London. Over the last few years, these firms have offered substantial pay packages to attract top talent, which has had a ripple effect on the hiring market.
So what makes a lawyer a good hire in the City? For one, having a name in a field is eye-catching for a firm. It wasn’t shocking when US firm Paul Weiss poached one of the biggest legal names in deal-making, Neel Sachdev, in 2023, as it significantly expanded its presence in London.
Due to the nature of partnerships at law firms, a good partner will not only excel in the area of law they practice, but they will also be exceptional at business development (BD). Ultimately, bringing new clients through the firm’s doors is what drives growth.
Many lawyers will have most of the above-noted on their CVs, but not everyone will live up to it, which is why law firms are asking for more due diligence from recruiters. After all the time and effort spent bringing in a new partner, trying to offload them if they don’t fit in or live up to expectations can be a tall order.
Nick Woolf, partner at Woolf&Co, explained: “With so much riding on lateral moves, such as client relationships, team morale, PEP and external reputation, relying on luck or gut instinct is madness. Proper due diligence is no longer optional, it’s survival.”
Rigorous verification
Woolf pointed out that a “poor senior hire isn’t just a bad fit, it brings with it reputational, cultural and commercial consequences” to that firm, which it why the “stakes around lateral hires have never been higher”.
Alex Carruthers, founding partner at Hughes Fowler Carruthers, which opts for recruiting internally, explained: “Lateral hires can seem attractive, but however good they appear in the directories and over a glass of wine, it is impossible to know if they will have the requisite skills and fit into the office culture.”
Beyond possibly not being as significant a deal-maker as promised, there are also perisitent concerns around bullying and inappropriate behaviour. Like many sectors, law firms have increasingly focused on fostering a positive workplace culture. It reflects poorly on a partner if they are brought before the Solicitors’ Disciplinary Tribunal (SDT).
US firm Mayer Brown is currently facing a PR debacle after the firm lit up headlines last week after firing a newly recruited partner in its New York office less than a month after hiring him. It turned out he had posted a series of “crude and degrading” comments under social media posts, which were unveiled by a post on Medium.
Back in the City, the Solicitors Regulation Authority (SRA) has issued numerous warnings and guidance to lawyers on workplace culture, sexual misconduct, wellbeing and employers’ duties.
From rogue lawyers whose actions have cost law firms millions in litigation damages and caused significant reputational harm—such as Neil Gerrard at Dechert—to numerous instances where the SRA has struck off lawyers found guilty of serious misconduct by the Tribunal, the consequences can be severe.
“A bad partner hire isn’t just a misstep; it’s a potential scandal. We’ve seen disasters because no one asked the right questions or spoke to the right people,” stated Woolf.
He explained that as a result, law firms are asking their recruiters “to uncover the how and why behind a candidate’s career, not just the what”, adding “firms want more than reassurance, they want insight.”
In an increasingly competitive landscape, it’s essential to look beyond the CV and thoroughly understand the inner workings of potential partner firms before investing, as this extra layer can make all the difference.
Eyes on the Law is a weekly column by Maria Ward-Brennan focused on the legal sector.