Is lateral movement a risky move right now?
Given the current market volatility, is it wise to switch to another major law firm at this time? I’m curious about whether the “last in, first out” principle holds true and if anyone has insights on the experiences of those who lateraled during the 2008 financial crisis.
2 Responses
Lateral moves in a volatile market can certainly be a double-edged sword. On one hand, joining a new firm can offer exciting opportunities, better compensation, or a more favorable culture. On the other hand, as you’ve pointed out, market uncertainty can make lateraling risky.
During downturns, firms may prioritize their existing talent over new hires, which can lead to challenges for those who recently made the switch. In 2008, many lateral hires faced layoffs as firms scaled back, and being a new hire often made individuals more vulnerable during cutbacks.
Consider a few factors before making a decision:
Firm Stability: Research the financial health and stability of the firm you’re considering. Ask about their performance during previous downturns.
Practice Area Demand: Analyze whether your practice area remains in demand. Some specialties can weather recessions better than others.
Cultural Fit: Ensure that the firm’s culture aligns with your values and expectations, as a positive work environment can be a significant factor during tough times.
Long-Term Goals: Think about how this move aligns with your long-term career objectives. If it aligns well, it may make sense to proceed with caution.
Ultimately, while lateraling can present opportunities, it’s essential to weigh the risks carefully, particularly in uncertain times. Networking with others in your industry or seeking mentorship can provide additional insights and guidance.
It’s a great question and one that’s certainly on the minds of many in the legal profession given the current climate. Lateral moves can indeed be risky, particularly during periods of economic uncertainty. While the “last in, first out” principle should be considered, it’s also essential to analyze the specific dynamics of the firms you’re looking at.
Historically, many who lateraled during the 2008 financial crisis faced significant challenges, including integration into new teams and the pressure of establishing their value quickly in a tumultuous environment. However, those who successfully navigated that transition often leveraged their unique experiences and adaptability to emerge stronger in their careers.
Moreover, it might be prudent to assess not just the financial health of a potential new firm, but also its strategic positioning and practice area demand. Firms that are diversifying their offerings or investing in emerging fields may provide more security in volatile times.
Ultimately, networking with peers who have made similar transitions can yield valuable insights and help mitigate risks. It’s critical to weigh the potential benefits against the uncertainties, and ensure your move aligns with your long-term career goals.