How Lateral Hiring is Redefining the Legal Industry

The legal hiring market is undergoing a significant shift particularly within the financial services industry. Instead of pursuing broad waves of recruitment, law offices are increasingly focused on strategic lateral hiring - the process of bringing in experienced attorneys, often from other firms, to strengthen practice groups, expand client relationships, or add niche expertise. This approach prioritises precision over volume and seeks attorneys who can deliver immediate value.

According to Caroline O’Connell, Principal Recruitment Consultant at Larson Maddox, this trend reflects a new reality: firms want candidates who bring both revenue potential and market credibility from day one.

What firms want today

Rather than looking to fill seats quickly, employers are pursuing targeted lateral acquisitions that align with long-term growth goals. The attorneys in highest demand include:

• Mid-level associates (3-6 years), particularly those with deal experience and managerial capabilities.
• Candidates with portable relationships or a book of business - even modest networks that open doors are seen as a major asset.
• Attorneys with specialised expertise, such as fund formation, private equity, or niche regulatory knowledge.

Beyond technical ability, firms are weighing qualities like cultural fit, communication skills, and loyalty. “If two candidates look the same on paper, the one who shows strong interpersonal skills and a credible long-term motivation will often tip the scales,” Caroline explains.

What distinguishes top candidates

In today’s lateral hiring market, the strongest attorneys are those who go beyond a polished resume. Law offices should look for candidates who can demonstrate alignment with the firm’s long-term vision, present detailed deal sheets and matter lists that showcase tangible impact, and, at senior levels, provide a clear business development plan. These qualities reveal a candidate’s ability to contribute immediate value and drive sustained growth.

Pitfalls for hiring managers

While demand remains strong in practice groups like finance, M&A, private equity, and real estate, many firms still fall into common traps when approaching lateral hiring. Caroline points to two main issues:

The solution, Caroline suggests, is a strategically flexible approach. By broadening the lens through which candidates are evaluated, firms can access a wider pool of high-potential attorneys who may not check every box on paper but bring exceptional value in other ways, such as emotional intelligence, client readiness, industry insight, or a collaborative mindset.

Why it matters

Transactional practices are closely tied to market cycles, so firms need talent who can contribute immediately and adapt to shifting client needs. At the same time, candidates are increasingly evaluating firms for long-term alignment and stability.

By focusing on precision hiring and emphasising both technical and soft skills, firms can secure professionals who not only meet today’s needs, but also strengthen their future growth.

How Larson Maddox supports lateral hiring

At Larson Maddox, we partner with law firms and legal professionals to navigate these challenges. With deep expertise across legal and regulatory markets, we consult on how to identify, attract, and retain attorneys who align with strategic goals. Request a call back to have a confidential discussion with one of our talent specialists. If you’re a candidate searching for your next opportunity, browse open roles here.