When it comes to lateral hiring, there are a number of issues that must be considered to ensure that both candidates and their prospective employers make the right choice. Andrew Chalkley explains




If you find yourselves talking meaningfully to headhunters or partners in other firms, or have sent your CV out to recruitment consultants, then you have probably already psychologically left your current firm.



Moving from one firm to another can be career enhancing, but to do so too often will mark you out as either unstable or as a rogue and will be detrimental. The opportunity should be used to improve your situation and there are a number of issues to consider. Many of these will be obvious, others will be more subtle. All of them will apply equally to teams as well as individuals.



Many will have thought carefully about why they have reached this point, but may not have taken as much care to think through what they want to achieve. This will vary, but the crux will be the need to feel that you are making an acknowledged contribution that is valued by the firm.



Recognition will in part need to be financial, but often needs to be much more. This will depend largely on the culture of the firm you join.



Culture and mutual values are often overlooked aspects of lateral hiring, but a mismatch in values has the potential to lead to early problems and a fractious working environment. This means that when moving you should be clear about:

l The values which are important to the individual/team and the firm;

l The firm’s track record in integrating lateral hires and how long they stay; and

l How the integration process works.



These should be discussed explicitly and early on in the process. You should also be clear about the exit options on both sides if things do not work out.



Financial rewards will involve a meeting of minds and a reality check on both sides. There is a direct relationship between the value of an individual to a firm (reflected in salary or profit share and how that is linked to performance) and the value of the individual/team selling their services in the market to clients (reflected in the hourly rate or amount the client is prepared to pay for them). You need to be clear how this will be evaluated and its scope for adjustment over time.



Make sure you cover the other ways that your contribution will be recognised. For many, status, either on joining a firm or the ability to progress, is frequently an issue. Too often this is fudged on both sides. Many want to feel that a change of firm will reflect career progression. However, if a prerequisite is partnership, be clear about the risks – financial, professional and personal – that are involved, as well as how the firm mitigates these risks in terms of partnership structure, systems, processes and insurance arrangements.



A key question is whether the benefits of partnership reasonably balance the risk. This should be answered openly and honestly and will involve considering why you want to be a partner – what will it add to you and what will you bring to the firm in turn? Make sure that this assessment is objective and that there is a real client-orientated rationale behind this need. If there is not, look at alternative career paths as well as their options for progression. Whatever route is taken, there should always be an agreed and unambiguous plan.



In any lateral-hiring situation, the most dangerous flaw is assumption. An important issue for both the individual/team and the firm they are considering joining will be the perception of clients. If there is an expectation that clients will also change firms, this should be fully identified and tested. The greater the expectation, the more important this is. For a host of reasons, it is likely to be a difficult and complex exercise. However, the failure of a following to materialise is probably the most common reason for a lateral hiring to be unsuccessful.



Individual or team assumptions about how well the firm is performing and is perceived (either through their own or others’ perception, or third-party information), how the firm operates and is managed, and what are its positioning and strategy, are often incorrect. Some firms’ ability to market themselves exceeds, distorts and often disguises their other abilities. Nothing should replace first-hand objective knowledge, detailed research and questioning.



The movement of teams is challenging and needs to be considered carefully by the individual members, particularly in respect of how it will affect their own careers. It may require a very frank and open discussion before options are talked through with the hiring firm. It is important to be realistic about the ability of the whole team moving en masse, as well as individuals’ commitment, motivation and agendas. Bear in mind particularly the effect on client relationships if all or only part of the team moves, and make sure that you know who the essential people are as well as those who can be sacrificed or are needed to add weight to your proposition.



Any move from one firm to another involves risk for all involved. The key to a successful move is for everyone to have a clear idea of what they are seeking to achieve before they embark on detailed discussion. It may be that, initially, the objectives of those involved appear to be difficult to reconcile. However, negotiations are more likely to succeed and the relationship that follows to be more long-lasting if everyone has properly thought through all of the key issues in advance.



Andrew Chalkley is chief executive of Reading firm Boyes Turner