Law Firms Rethink Lateral Hiring

US law firms are being pushed to modernise lateral hiring as experienced associates become a larger part of talent strategy. In 2025, firms hired more lateral associates than new law school graduates, with lateral associates making up 49% of associate hires compared with 38% from law schools.

The shift exposes a weakness in traditional recruitment. Credentials such as class year, practice area and current firm remain useful, but they do not fully show whether a lawyer can solve complex problems, collaborate well or perform under pressure. Reasons for leaving are often self-reported, references are limited and interviews can offer only a partial view.

Technology is making that uncertainty more serious. As artificial intelligence changes how some legal work is performed, firms cannot rely only on past experience to predict future value. The strongest candidates may be those with judgement, adaptability and critical thinking, not simply those with the right pedigree.

That is why structured hiring data is becoming more important. Assessments can help firms understand reasoning, analytical capability and behavioural fit, while performance and retention data can show which traits actually predict success inside a particular organisation.

For the legal industry, the lateral market is becoming a test of discipline. Firms that keep hiring reactively may chase the same visible résumés. Those that build better evidence around potential may gain an advantage as legal work, associate expectations and the competition for talent continue to change.