Decipher Investigative Intelligence

Are you among the 97 percent of firms that plan to grow through laterals next year? If so, Q3 is the prime recruitment season. Here’s why. The best and most strategic candidates will take their time shopping for the right culture and the right platform for their books of business; 60 percent take more than four months, and two-thirds will consider two or more firms. These rainmakers are starting to consider firms NOW. Conversely, the candidates who are less than ideal – less likely to bring over quality business, more likely to bring over risk – tend to wait until Q4. Case in point: Decipher data shows that candidates who enter the pipeline after Q2 and Q3 are 28 percent more likely to prompt major red flags in the due diligence process. Don’t get stuck with last-minute laterals. Fill your pipeline now with quality candidates that will complement your firm’s strategy AND elevate your culture. Decipher’s Discover solution can build a custom pipeline of quality candidates – and position your recruiting for success in 2025 and beyond.

Four out of five law firms exclude Marketing from the lateral hiring process – and this is a critical mistake. Indeed, the marketing team is responsible for growing firm revenue, and laterals are often the most efficient way to do so. BTI Consulting puts the post-pandemic win rate for proposals and RFPs at 26 percent, while the average lateral partner candidate will bring 35 percent of their claimed book. To put it simply, why scramble to compete for work when you could acquire the books of business you want? The most competitive law firms are taking their fight for market share to the talent battlefield – and integrating lateral recruitment throughout the firm. #LateralLessons

Lateral risk isn’t limited to partners: Today in #LateralLessons, let’s look at the associate pool. In lateral moves tracked by Decipher, nearly two-thirds of candidates (59 percent) had at least one red flag surface, and nearly one in five candidates (20 percent) had a major red flag surface. That’s especially problematic in a year like this one, with lateral associate hiring up a shocking 70 percent. If you’re building up your associate ranks, don’t skip on the due diligence: Today’s associate could be tomorrow’s partner…or tomorrow’s negative headline or lawsuit.

Today in #LateralLessons: How risky are the candidates for lateral partner positions? From 2022 to 2023, serious candidate red flag rates increased nearly 50 percent: 85 percent have had more than one red flag over the past year, and 43 percent have had three or more red flags. What prompts a red flag concern? These can include: -Questionable legal skills -Overstated books of business -Challenging personalities -Significant tax liens -Undisclosed outside business interests -Bankruptcies -Conflicts -Unethical behavior -Problematic online or social media presence While not every red flag is a disqualifier, all of them should prompt some risk management. 

79% of law firms rank business generation as the No. 1 quality of a lateral partner – but it’s key to know how much will actually come over. According to Decipher analysis, on average, laterals claim they can bring 57% of their clients over. In reality, that’s closer to 35%...just a little better than one in three. How can your firm improve these odds? Verify books through due diligence, and know and understand the data behind your pipeline, compensation negotiations and more. #LateralLessons

Congratulations to our ✨employee spotlight of the month, Sam Wickam! We are recognizing Sam for demonstrating our company's core values, including: ➡️ Courage to Innovate by proposing tracking additional data points ➡️ Professionalism and Accountability, particularly in her source interviews ➡️ Power in Data by continuing to develop and manage input for various databases crucial to our ever-growing data arsenal

When half of all laterals fail, the costs to replace them can be significant – likely seven figures in comp, onboarding and recruiter fees. Today in #LateralLessons, let’s look at the average cost of replacing a failed lateral: AmLaw 50 firms: $4.04 million AmLaw 51 to 150: $1.51 million AmLaw 151 to 200: $715,500 Of course, this doesn’t take into account the wasted time and possibly wasted goodwill that make this one of the most sobering #LateralLessons.

Our own Julie Henson and Michael (Ellenhorn) joined Elise Holtzman, JD, PCC on The Lawyer's Edge podcast to talk about smart law firm growth. Planning your 2025 moves? This podcast covers many topics that matter to law firm leaders, from common mistakes in mergers to best practices for lateral integration to cultural mismatches.

Recruiting summer associates can be overwhelming as law firms race to secure top talent. Avoid a bad summer surprise with a fast, relevant, data-driven approach. Discover how Decipher's Summer Associate Screening can help you mitigate unnecessary risks. https://lnkd.in/dEVyucpu

Up next in #LateralLessons: While there can be great upside for lateral recruitment, failure rates can be high too. By the numbers:   62% will fail to bring their promised book of business 35% will fail to fit in culturally 48% will be gone within five years How can you protect your investment in lateral partners? Elevate your decision-making process and eliminate random acts of hiring.