Making a lateral move as an attorney can be a strategic career decision, but it’s also one that carries risk. Beyond compensation and title, it’s critical to dig deeper and recognize warning signs that could signal potential issues down the road.
A lateral move may look perfect on paper, but the reality inside the firm can tell a different story. Attorneys who fail to do proper diligence often find themselves in less stable environments, facing limited growth or poor cultural fits. Whether you’re actively considering a move or simply exploring options, understanding the red flags can help you avoid costly missteps and align your career with a healthier long-term trajectory.
High Turnover Rates
When a firm has a revolving door of attorneys, it’s rarely a coincidence. High turnover often signals issues with culture, management, or compensation. It may also reflect that attorneys are dissatisfied with the workload, leadership, or lack of career growth.
Ask the firm directly about attrition rates. How many lateral hires have they retained in the past five years? What’s the average tenure of associates and partners? If partners leave in clusters or entire groups have defected recently, those departures might point to instability. A healthy firm should be able to demonstrate long-standing careers and loyalty among its attorneys.
Limited Growth Opportunities
One of the biggest motivators for making a lateral move is career advancement. But not all firms provide a clear path for growth. If there are no opportunities to step into leadership roles, develop new clients, or grow your practice area, the firm may not be a place where you can build long-term success.
Be wary of firms that seem interested only in your billable hours without showing interest in your professional development. Ask about mentorship, training programs, and whether attorneys have successfully advanced from associate to partner. A move that doesn’t enhance your long-term prospects isn’t truly a step forward.
Shallow Business Structure
A stable law firm should not be overly reliant on just a few rainmakers. If most of the revenue comes from one or two key partners, the firm’s future becomes uncertain if those partners leave, retire, or lose a major client.
When evaluating a firm, look at the diversity of its client base and the balance among practice groups. Is there a broad platform with multiple strong revenue streams, or does the business structure feel top-heavy? A shallow business structure puts your career at risk, no matter how enticing the immediate offer might look.
Frequent Leadership Changes
Leadership stability is critical for setting the vision and direction of a law firm. If the managing partner or practice chair position seems like a revolving door, that instability can create confusion, shifting priorities, and uncertainty about the firm’s future.
Ask how long the current leadership team has been in place and how frequently leadership changes occur. Frequent turnover in leadership often results in inconsistent messaging, shifting strategy, and potential disruption to your own practice.
You Feel Out of Place During Interviews or Interactions
First impressions matter. If you don’t feel comfortable during the interview process, or if something about the culture feels “off,” that’s worth paying attention to. The interview process should give you a sense of belonging and alignment with the firm’s values.
Pay attention not just to what interviewers say, but how they make you feel. Are they genuinely interested in your career, or just asking surface-level questions? Do they seem collegial and collaborative, or more competitive and transactional? If you feel out of place during initial interactions, that discomfort will likely intensify once you join.
Inconsistent Messaging Across Interviewers
If each interviewer gives you a different perspective on compensation, firm strategy, or culture, it could signal a lack of alignment at the leadership level. A well-run firm should be consistent in its messaging about its vision and values.
Listen for discrepancies. If one partner talks about aggressive growth while another stresses a slow, conservative approach, that misalignment could translate into conflicting expectations once you’re on board. Consistency is a hallmark of strong leadership, and the absence of it should raise concern.
Unrealistic Promises About Your Book of Business
Some firms may overpromise how easily they can integrate your clients into their platform. If they claim cross-selling will be seamless or assure you that conflicts won’t be an issue, proceed with caution. Client integration is rarely as simple as advertised.
Ask for concrete examples of how the firm has successfully integrated other laterals’ books of business. How have they handled conflicts in the past? Are there case studies they can point to? If the answers are vague or overly optimistic, you may be getting sold a story that won’t hold up in reality.
Unclear Responsibilities or Role
Another common red flag is ambiguity around your role. If the firm can’t articulate clear expectations for your practice, such as business development goals, reporting lines, and client responsibilities, you may be walking into an undefined position that leaves you unsupported.
Push for specifics during the interview process. What metrics will you be evaluated on? Who will you report to? How will success be measured in your first year? A firm that cannot provide clarity on these questions may not have a plan for you, which could jeopardize your success.
Business Practices That Seem Shady
Transparency is critical in any law firm. If you encounter questionable billing practices, evasive answers about financials, or ethical gray areas, it’s time to walk away. Even if the compensation package looks appealing, associating with a firm that cuts corners can damage your career and reputation.
Do your due diligence by speaking to current and former attorneys, researching news coverage, and asking pointed questions. If a firm’s practices don’t align with your ethical standards, no short-term gain is worth the long-term risk.
Poor Firm Reputation in the Market
Your reputation as an attorney is closely tied to the firm you represent. If the firm has a poor reputation in the legal community, whether for high attrition, unhappy clients, or negative press, it could impact your ability to attract and retain clients.
Before making a move, ask colleagues and contacts about the firm’s reputation. How is the firm viewed by clients, opposing counsel, and peers? Reputation is hard to rebuild once damaged, and you don’t want your career tied to a firm that isn’t respected in the marketplace.
Unclear Compensation Structure
Compensation is one of the most critical factors in any lateral move. While every firm structures pay differently, transparency should be a given. If the firm avoids direct answers about how bonuses, origination credit, or partner distributions are calculated, you may be in for unpleasant surprises later.
Ask for details about the compensation system and how it applies to lateral hires. Does the firm reward collaboration, or is it purely eat-what-you-kill? Are origination credits shared fairly? A lack of clarity on compensation often leads to internal conflict and dissatisfaction.
Your Gut Says It’s Too Good to Be True
Sometimes, the most important red flag is your own intuition. If the opportunity seems overly polished, if answers to your questions feel vague, or if the promises sound too good to be true, trust your instincts.
The best opportunities should inspire confidence and feel like a natural fit for your skills, goals, and values. If your gut tells you something is off, listen to it. Often, your instincts pick up on warning signs before your brain fully processes them.
Final Thoughts
Making a lateral move is an exciting opportunity, but it comes with risks. By paying attention to these red flags, high turnover, unclear roles, inconsistent messaging, and more, you can avoid making a move that derails your career.
At Momentum Search Partners, we specialize in helping attorneys evaluate lateral opportunities with clarity and confidence. Our team has deep insight into the Texas legal market and can help you separate the firms that offer true long-term growth from those that may look appealing on the surface but present hidden challenges.
If you’re considering a lateral move, let us be your trusted advisor. We’ll help you ask the right questions, avoid the wrong opportunities, and find a firm that aligns with your career goals.