Special focus: Legal recruitment
Lateral hires on the horizon as some firms face
uncertain future
With competition increasing in the Spanish legal market, top performing lawyers may want to move
elsewhere if more senior colleagues are in the ´comfort zone´
As competition increases in the
Spanish legal market, a growing
number of law firms could start
seeking lateral hires, predicts
Alejandro Kress, associate director
and Iberia head at Shilton Sharpe
Quarry. He believes there could
be greater market consolidation
globally in 2015, which could lead to
an increase in demand for specialist
recruitment services in specific areas
and locations, including Iberia.
“I think we may see one or two
law firms decide to open in Spain
during the next 24 months, but one
of the biggest questions over the next
few years relate to the future of the
biggest Spanish law firms and certain
boutiques,” Kress remarks. “There
are a significant number of boutiques,
so as competition gets more intense,
senior partners within these boutiques
will retire and new boutiques will
be set up by partners coming from
full-service law firms. Some boutiques
will be tempted in the mid-term to
join growing law firms with the right
financial muscle, and at the same time
there will be more partners looking to
move to better hedged legal platforms
internationally.”
Kress says that, traditionally,
Spanish law firms have tended to
think they do not need recruiters,
or at least, not frequently. “Spanish
partners would often conduct the
recruitment themselves but the
dynamics of the legal market have
changed. Now they are starting to
appreciate the added value that
recruiters can bring to their business
strategy. Recruiters know what the
real driver is for a move in most
scenarios.”
Kress says, due to the traditional
approach of Spanish firms, there was
very little lateral movement, with
lawyers staying in the same firm
for decades, especially in large, or
mature, Spanish practices. He points
out that this has both advantages and
disadvantages but, on the negative
side, such a policy crucially does little
to encourage new business, he argues.
“The business case for recruiting a
partner is paramount,” Kress claims.
“A partner practising in a firm for
20 years may be in the comfort zone
www.iberianlawyer.com
and it is unlikely they are going to
be attracting new business, while
some top performers will have built a
solid book of business and can leave
the firm with several opportunities
to consider in order to improve
their careers – and earnings – versus
underperforming partners.
“On the flipside, when looking
at growing their practices, some
managing partners are still sceptical
regarding lateral hires, based on an
assumption the book of business
is attached to the firm. This is not
always the case, new hires create new
opportunities, new clients and new
revenue.”
Alejandro Kress
Cultural fit is important
Kress highlights the different attitude
of the younger generation of lawyers
as another influence on the market.
Younger lawyers want the top jobs
in the top firms but, unlike their
predecessors, are less inclined to
work as hard, he says. “Some younger
associates do not appreciate that they
have to start from scratch,” Kress
states. “They have the knowledge and
the skills to go far in their career but
sometimes not the attention span or
dedication.”
Kress says that younger lawyers
sometimes seem to focus on the
bottom-line salary figure and less
on the quality of the firm, the brand
and the long term career prospects.
He also stresses that the cultural
fit is a major priority for both law
firms and candidates. For instance,
issues include: whether a candidate
would fit better into a Spanish firm,
an international firm, a boutique or
a full-service practice; whether they
have the right language skills; what
type of work they want to do; and
whether they are willing to undertake
lots of paperwork.
“The cultural fit is important and
it links in to the overall business
strategy of a law firm,” Kress says. He
adds: “Many large businesses now use
multiple legal advisers so law firms
need to build a long-term strategy
based on personal relationships and
trust with their clients. You need to
have the right people in your firm to
do that.”
January / February 2015 • IBERIAN LAWYER • 55