Perhaps it’s just the beautiful weather, or because baseball is back in season but the economy seems to doing better (or sucking less if you’re a half empty kind of person). The most recent data points (GDP, bank loans, retail numbers, etc) are all pointing that the economy is getting healthier. This is great news and should lead to the end of the layoffs and in the near future should lead to increased hiring. In the past weeks, Warren Recruiting has seen more new positions than any period since November 2008.
While the recession marathon is hardly over, we’ve now reached a sustainable stride and if we can keep it up, we will certainly reach a full recovery. To learn more about our new job orders, our client’s needs or how to land the next big position, give us a call.
- Tel. (713) 524-4888 |
- Email: WarrenRecruting.com
Tuesday, April 14, 2009
A Holistic View of the Downturn
Interesting read for the AP. In America, there are always people to sue or contracts to negotiate, right? Apparently there aren't enough.
The recession is taking a steep toll on the legal profession, an industry long seen as immune from the ups and downs of the economy. Trying to weather the financial crisis, the nation's largest law firms are laying off attorneys and delaying the hiring of others.
More than 3,000 lawyers have been laid off in the first three months of 2009.
A lot of people go into the law because it's one of those professions where you're always going to have work. There aren't typically big layoffs," said Samuel Smith of Charlotte, N.C. "Realistically, I don't think people saw this coming."
Last summer Smith was working at Cadwalader, Wickersham & Taft while flirting with job opportunities at a few other firms. But in August, Smith was laid off as the economy soured. The firms that earlier had been interested were now reluctant to hire.
"I'm still looking for jobs," said Smith, who launched http://www.rateapartner.com, a Web site that links to legal business news articles and allows lawyers and clients to anonymously rate law firm partners.
Just how bad is it out there?
The Labor Department said the number of unemployed lawyers jumped 66 percent last year to a 10-year high of 20,000.
The first time this year that three consecutive business days passed without one of the nation's top law firms announcing job cuts came in mid-March, according to the Web site Lawshucks.com. They have counted 3,149 lawyer layoffs—just in the big firms, just in the first three months of the year.
The New York City Bar Association, for the first time in its more than 135 years, is offering career counseling services to lawyers between jobs.
Law firms are delaying the hiring of final-year law students, who normally are brought on a year in advance of graduation. Law students graduating with jobs this spring are being paid to delay their start date. Some are being told there will be no work until later in the year, maybe in 2010.
So many would-be lawyers are facing this situation that Volunteer Lawyers for Justice, a group that trains volunteers to provide free legal assistance to low income clients, held a "Deferred Associates Job Fair" in Newark, N.J., for graduates looking for temporary work while waiting for permanent jobs to come through.
For some Americans, there's not much sympathy for lawyers who are suddenly jobless.
They make more money than the Average Joe, with the nation's million-or-so employed lawyers averaging $118,280 in 2007, or $56.87 an hour, according to the Labor Department's Bureau of Labor Statistics.
And the number of out-of-work lawyers is minuscule compared with the manufacturing sector, which had 945,000 unemployed workers last year, or the construction industry, which saw more than 1 million jobs disappear in 2008.
But those careers don't require four years of college plus a degree from a law school that costs about $70,000 to attend.
"My computer is about to die with the amount of resumes I've sent out," said Tim Brown, 32, of Alexandria, Va.
Brown was laid off from his job working on franchise law for the National Auto Dealers Association on March 26 and has sent out hundreds of resumes. The response?
"'We've received your resume. Thank you very much,'" said Brown, who made April's loan payment but is concerned about May.
Karla Cortes, 33, lost her job as a Nature Conservancy attorney in November, only two years after graduating from American University's law school.
Money is now getting tight, said Cortes, who attended a George Washington University workshop on getting a legal job in the tough economy. "I hope to find a job soon," she said. "Otherwise, I will have to return to Puerto Rico because my savings will be depleted."
Tommy Wells, president of the American Bar Association, said the increase in lawyer layoffs is partly the legal industry's fault.
In the past, large law firms diversified by having lawyers work in areas such as bankruptcy and litigation that could support the corporate and mergers-and-acquisition work when the economy soured and vice versa, he noted.
"Firms probably got a bit out of balance in terms of their practice areas and put a lot of resources into areas that unfortunately are not nearly as active as they were a few years ago," he said.
The economy is being blamed for entire law firms going under.
In Philadelphia, WolfBlock, which has been in business since 1903 and has more than 300 lawyers in several states, is "unwinding" in preparation for closing. Partners blame the banking crisis, the recession—especially in the firm's core real estate practice—and lawyers and clients bailing as the writing on the wall became clearer.
In New York City, Thacher Proffitt & Wood, in business since 1848, survived the terrorist attacks of Sept. 11, 2001; it had offices in the World Trade Center and lost none of its more than 300 lawyers and support staff. But it couldn't survive the bad economy and closed in September.
Fanni Koszeg, 34, of New York City, lost her job at Thacher in April 2008. Koszeg thought she would take the summer off and maybe go back to work as a public interest lawyer.
"That was very naive of me," Koszeg said. "Now, all of the other law firms have been laying off hundreds of lawyers."
The recession is taking a steep toll on the legal profession, an industry long seen as immune from the ups and downs of the economy. Trying to weather the financial crisis, the nation's largest law firms are laying off attorneys and delaying the hiring of others.
More than 3,000 lawyers have been laid off in the first three months of 2009.
A lot of people go into the law because it's one of those professions where you're always going to have work. There aren't typically big layoffs," said Samuel Smith of Charlotte, N.C. "Realistically, I don't think people saw this coming."
Last summer Smith was working at Cadwalader, Wickersham & Taft while flirting with job opportunities at a few other firms. But in August, Smith was laid off as the economy soured. The firms that earlier had been interested were now reluctant to hire.
"I'm still looking for jobs," said Smith, who launched http://www.rateapartner.com, a Web site that links to legal business news articles and allows lawyers and clients to anonymously rate law firm partners.
Just how bad is it out there?
The Labor Department said the number of unemployed lawyers jumped 66 percent last year to a 10-year high of 20,000.
The first time this year that three consecutive business days passed without one of the nation's top law firms announcing job cuts came in mid-March, according to the Web site Lawshucks.com. They have counted 3,149 lawyer layoffs—just in the big firms, just in the first three months of the year.
The New York City Bar Association, for the first time in its more than 135 years, is offering career counseling services to lawyers between jobs.
Law firms are delaying the hiring of final-year law students, who normally are brought on a year in advance of graduation. Law students graduating with jobs this spring are being paid to delay their start date. Some are being told there will be no work until later in the year, maybe in 2010.
So many would-be lawyers are facing this situation that Volunteer Lawyers for Justice, a group that trains volunteers to provide free legal assistance to low income clients, held a "Deferred Associates Job Fair" in Newark, N.J., for graduates looking for temporary work while waiting for permanent jobs to come through.
For some Americans, there's not much sympathy for lawyers who are suddenly jobless.
They make more money than the Average Joe, with the nation's million-or-so employed lawyers averaging $118,280 in 2007, or $56.87 an hour, according to the Labor Department's Bureau of Labor Statistics.
And the number of out-of-work lawyers is minuscule compared with the manufacturing sector, which had 945,000 unemployed workers last year, or the construction industry, which saw more than 1 million jobs disappear in 2008.
But those careers don't require four years of college plus a degree from a law school that costs about $70,000 to attend.
"My computer is about to die with the amount of resumes I've sent out," said Tim Brown, 32, of Alexandria, Va.
Brown was laid off from his job working on franchise law for the National Auto Dealers Association on March 26 and has sent out hundreds of resumes. The response?
"'We've received your resume. Thank you very much,'" said Brown, who made April's loan payment but is concerned about May.
Karla Cortes, 33, lost her job as a Nature Conservancy attorney in November, only two years after graduating from American University's law school.
Money is now getting tight, said Cortes, who attended a George Washington University workshop on getting a legal job in the tough economy. "I hope to find a job soon," she said. "Otherwise, I will have to return to Puerto Rico because my savings will be depleted."
Tommy Wells, president of the American Bar Association, said the increase in lawyer layoffs is partly the legal industry's fault.
In the past, large law firms diversified by having lawyers work in areas such as bankruptcy and litigation that could support the corporate and mergers-and-acquisition work when the economy soured and vice versa, he noted.
"Firms probably got a bit out of balance in terms of their practice areas and put a lot of resources into areas that unfortunately are not nearly as active as they were a few years ago," he said.
The economy is being blamed for entire law firms going under.
In Philadelphia, WolfBlock, which has been in business since 1903 and has more than 300 lawyers in several states, is "unwinding" in preparation for closing. Partners blame the banking crisis, the recession—especially in the firm's core real estate practice—and lawyers and clients bailing as the writing on the wall became clearer.
In New York City, Thacher Proffitt & Wood, in business since 1848, survived the terrorist attacks of Sept. 11, 2001; it had offices in the World Trade Center and lost none of its more than 300 lawyers and support staff. But it couldn't survive the bad economy and closed in September.
Fanni Koszeg, 34, of New York City, lost her job at Thacher in April 2008. Koszeg thought she would take the summer off and maybe go back to work as a public interest lawyer.
"That was very naive of me," Koszeg said. "Now, all of the other law firms have been laying off hundreds of lawyers."
Labels:
attorney positions,
law firm layoff,
legal jobs
Monday, March 23, 2009
Summer Programs
According to Texas Lawyer despite a sagging economy, recent layoff announcements and the discontinuation of a summer associate program by one large Texas firm, 17 of the 25 largest firms in Texas confirm they are continuing with their 2009 summer associate programs.
Summer associates are the primary recruiting pool for the new talent hired by many firms. The students who will be working at firms during the summer of 2009 will become the majority of the firms' first-year associates in 2010.
Summer associate programs are expensive. Most of Texas' large firms pay the students $3,000 a week for positions lasting from six to 10 weeks. The firms also pay housing allowances for the students, as well as entertainment costs, such as meals and tickets for concerts and sports events.
But these are tough times, even in Texas. Six firms with large Texas operations — Andrews Kurth; Baker Botts; Gardere; K&L Gates; King & Spalding; and Winstead — have laid off lawyers this year. Also, earlier this month, Winstead cancelled its summer associate program. [ See "Inadmissible," Texas Lawyer , March 16, 2009, page 3. ] Firm spokeswoman Shannon Tipton declines to specify the number of students involved or when they were notified that the summer program was cancelled. During the summer of 2008, Winstead employed 28 summer associates.
One student from Southern Methodist University Dedman School of Law in Dallas was affected by Winstead's decision to cancel the 2009 program, says Karen C. Sargent, assistant dean and director of career services for the law school. Sargent says the affected student is one of the school's best and has other opportunities.
Donna David-Gregory, assistant dean of career services at Texas Southern University Thurgood Marshall School of Law, says that none of the law school's students were in the summer program cancelled by Winstead.
Career services officials at the other seven American Bar Association-accredited law schools in Texas did not, before presstime on March 19, return a telephone call made to each seeking comment. Most Texas law schools were on spring break last week.
But at least 17 of the 25 firms employing the most lawyers in Texas, as listed on Texas Lawyer's "The Texas 100" poster published April 28, 2008, say they are committed to employing those students recruited in the fall of 2008 for the 2009 summer programs. Most of the firms, as anticipated, hired smaller 2009 summer classes than they did in 2008. [See "Some Firms Scale Back Summer Programs in Tough Economy," Texas Lawyer , Oct. 27, page 1. ]
Seven firms among Texas' largest 25 did not respond to requests for information about their 2009 summer programs before Texas Lawyer 's presstime on March 19: Brown McCarroll; Clark, Thomas & Winters; Fulbright & Jaworski; Gardere; King & Spalding; K&L Gates, and Munsch Hardt Kopf & Harr.
"It's just a sign of the times when you're trying to cut expenses and laying off people that you ask 'Why spend money on the summer associate program?' " says William C. Cobb, a Houston recruiter and consultant. All firms have conservative budgets this year and are cutting costs where possible, such as canceling annual firm meetings or holding them in a firm office rather than at an off-site resort, he says.
Cobb says most firms will continue with their summer associate programs to maintain good public relations with potential future employees. "But I bet all the summer associate programs will do things a lot more cheaply than is normally done," he says. "They will cut back on entertainment, parties and buying expensive wines."
Despite layoffs, two large Texas-basedfirms are continuing with their 2009 summer associate programs. Baker Botts has hired 83 summer associates for its offices in Austin, Dallas and Houston, writes Rachel S. Koenig in an e-mail message. She is the firm's director of recruiting and development. The firm employed 124 summer associates in Texas in 2008. The Houston-based firm, which laid off lawyers and staff earlier this year, declines to specify the number of layoffs. [See "Baker Botts Layoffs," Tex Parte , March 13, 2008. ] It employed 554 lawyers in Texas and 825 firm-wide as of Jan. 1.
Why is the firm continuing with a summer program despite recent layoffs? "It is absolutely vital to keep recruiting during an economic recession," Koenig writes.
Another firm that had layoffs, according to two former associates and three legal recruiters who requested anonymity, was Andrews Kurth. [See "Layoffs at Andrews Kurth," Tex Parte , March 3, 2008 ]. The firm declines comment about the layoffs reported in Tex Parte.
But the Houston-based firm is continuing its summer program. The firm has hired 31 summer associates, says Alexis J. Gomez, hiring partner for the firm's Houston office. The firm employed 328 lawyers in Texas and 390 firm-wide as of Jan. 1.
Andrews Kurth hired a smaller number of summer associates for 2009, compared to the 51 Texas summer associates hired in 2008, due to a "record number of acceptances from our 2008 summer program and in order to accommodate the firm's future needs," Gomez writes in an e-mail message. The firm made full-time job offers to 29 of its 34 second-year 2008 summer associates, and 19 of those students accepted jobs with the firm beginning in the fall of 2009. "We also expect to scale back our [summer associate] entertainment in order to focus more on the firm's core values in 2009," he writes.
Steady Approach
Bracewell & Guiliani has hired 49 summer associates for its Texas offices, says Michael S. Telle, hiring partner for the Houston-based firm. "We think it's important to maintain a steady, disciplined hiring program regardless of short term changes in the economy," Telle says.
The 451-lawyer firm hired 55 Texas summer associates in 2008. The firm looks at the summer program's expense as a long term investment, he says.
"We hope these students will spend their career with us, which will last 40 or 50 years," he says. "If we stopped hiring just because of a short-term blip in the economy, we would end up with a hole in our ranks at the associate level and that hole would exist up through the partner level."
Telle says Bracewell's smaller 2009 summer class size is due to a high acceptance rate by 2008 summer associates who accepted jobs for the fall of 2009. The firm offered jobs to 38 of its 42 second-year summer associates in 2008, and 24 of those 2Ls have accepted full-time jobs with Bracewell beginning in the fall of 2009. [See "BigTex Firms' Acceptance Rates Consistent in '08," Texas Lawyer , Dec.15, 2008, page 1 ].
Dallas-based Thompson & Knight has hired 22 summer associates, says J. Holt Foster, hiring partner for the 432-lawyer firm. Last summer the firm employed 36 summer associates but decided to decrease its 2009 summer program when the economy continued to slow down in the second half of 2008, he says. Foster says the summer associate program is an integral part of the firm's future.
"You need to be long-term sighted," he says. "You always want to make sure, as a top tier firm, that you put yourself in a position to find the most talented students and create a relationship with them. We're in this for a marathon, not for a sprint."
Washington, D.C.-based Patton Boggs has hired nine summer associates for its Texas office, says Eric White, hiring partner for the firm's Dallas office. The firm employs 104 lawyers in Texas and 540 firm-wide.
"We're still going to have our format as outlined for our summer associate program, which is first half only for six to seven weeks," White says. "We have no plan to scrap it or reduce it or anything like that."
The firm employed 16 Texas summer associates in 2008 and decided, when recruiting for the summer 2009 class during the fall of 2008, that a smaller class would be appropriate this summer. "With the uncertainty of the economy, we thought it was prudent to have a smaller class," White says.
Less Lavish
Dallas-based Haynes and Boone also is reducing entertainment costs for the approximately 56 law students it is bringing in to work in its Texas offices as summer associates, says Thomas H. Yang, the 464-lawyer firm's hiring partner. In 2008, the firm employed 71 Texas summer associates.
"In general we've always been cost conscious about expenses, not just for the summer," he says. "Rather than go to the nicest restaurants in town for lunches and dinners, we can go to more reasonably priced restaurants," he says.
Yang says that the firm's budget for dollars spent per recruit is less than it has been in previous years but that it's important for the firm to hire summer associates, despite the economy. "We take a longer term view, and therefore I think it is important for us to continue to recruit and attract the top students to the firm," he says.
Glenn D. West, managing partner of the Dallas office of New York-based Weil, Gotshal & Manges, says it would be "imprudent, if not offensive" for a firm to not be trying to cut costs in this environment. Weil, Gotshal has hired 25 summer associates for its offices in Austin, Dallas and Houston, West says. The firm employs 128 lawyers in Texas and 1,365 firm-wide. In 2008, the firm employed 40 Texas associates.
"We've never had a highly entertainment-oriented summer associate program," West says. "I'm not even sure that there is much additional cutting to do. We certainly will be looking at it," he says.
But West notes that recruiting is an essential firm expense. "There may be a lot of things one should do, in this environment [to reduce costs], but stopping or thwarting recruiting is not one of them, in our opinion," he says.
"A law firm is a bit like a fishing stream," West says. "If you don't have the spring pumping new water into the stream, it can stagnate."
Thomas S. Leatherbury, hiring partner for Houston-based Vinson & Elkins, agrees that summer associate programs are a necessary firm expense.
"It's an expensive process, but it is the future of the firm," Leatherbury says. "We hire most of our [entry level] lawyers from the summer program. It is very important to us to hire exceptional legal talent, and that's where we get it from, our summer program."
The firm, which employs 532 lawyers in Texas and 736 firm-wide, has hired 119 summer associates, about the same number of summer associates the firm hired in 2008, he says.
Hunton & Williams also has hired the same number of summer associates for its Texas offices — five students — as it did in 2008, says Patrick E. Mitchell, the managing partner of the Dallas office of the Richmond, Va.-based firm.
"We always planned on having five, and that is what we've got, and we're looking forward to it," he says. The firm employs 135 lawyers in Texas and 976 firm-wide. Mitchell says it is important for firms to have summer associate programs despite an uncertain economy. "The only product we sell is people," he says.
At San Antonio-based Cox Smith Matthews, 17 or 18 students will be working at the firm this summer, says Scott B. Bankler, chairman of the recruiting committee of the 127-lawyer firm. In 2008, Cox Smith hired 19 summer associates.
"We're taking a look at expenses, given the economy, but we hope we can run a similar program to those in previous years," Bankler says.
Fort Worth-based, 126-lawyer Kelly Hart & Hallman has hired seven summer associates, a few less than the nine students the firm hired in 2008, says firm recruiter Prissy Moore.
Thompson, Coe, Cousins & Irons, with 104 lawyers, has hired six students as summer associates, says Ellen M. Van Meir, a partner in Dallas and chairwoman of the firm's associate and recruiting committee. "The program is still going forward," she says. The Dallas-based firm employed 10 students during its 2008 summer associate program.
Five other large firms reported the number of students hired for the 2009 summer associate programs in the firms' Texas offices. Dallas-based Akin Gump Strauss Hauer & Feld has hired 26 summer associates, says spokeswoman Sheila Turner. Jackson Walker, based in Dallas, has hired 24 summer associates, recruiting director Kim DiLallo writes in an e-mail. Cleveland-based Jones Day, which has offices in Dallas and Houston, has hired 41 summer associates, says Kathy Shea, recruiting manager for the Dallas office. Dallas-based Locke Lord Bissell & Liddell has hired 38 Texas associates, firm spokeswoman Julie Gilbert writes in an e-mail. Strasburger & Price, based in Dallas, has hired six summer associates, writes Linsi Walker, the firm's recruiting and professional development manager, in an e-mail.
Summer associates are the primary recruiting pool for the new talent hired by many firms. The students who will be working at firms during the summer of 2009 will become the majority of the firms' first-year associates in 2010.
Summer associate programs are expensive. Most of Texas' large firms pay the students $3,000 a week for positions lasting from six to 10 weeks. The firms also pay housing allowances for the students, as well as entertainment costs, such as meals and tickets for concerts and sports events.
But these are tough times, even in Texas. Six firms with large Texas operations — Andrews Kurth; Baker Botts; Gardere; K&L Gates; King & Spalding; and Winstead — have laid off lawyers this year. Also, earlier this month, Winstead cancelled its summer associate program. [ See "Inadmissible," Texas Lawyer , March 16, 2009, page 3. ] Firm spokeswoman Shannon Tipton declines to specify the number of students involved or when they were notified that the summer program was cancelled. During the summer of 2008, Winstead employed 28 summer associates.
One student from Southern Methodist University Dedman School of Law in Dallas was affected by Winstead's decision to cancel the 2009 program, says Karen C. Sargent, assistant dean and director of career services for the law school. Sargent says the affected student is one of the school's best and has other opportunities.
Donna David-Gregory, assistant dean of career services at Texas Southern University Thurgood Marshall School of Law, says that none of the law school's students were in the summer program cancelled by Winstead.
Career services officials at the other seven American Bar Association-accredited law schools in Texas did not, before presstime on March 19, return a telephone call made to each seeking comment. Most Texas law schools were on spring break last week.
But at least 17 of the 25 firms employing the most lawyers in Texas, as listed on Texas Lawyer's "The Texas 100" poster published April 28, 2008, say they are committed to employing those students recruited in the fall of 2008 for the 2009 summer programs. Most of the firms, as anticipated, hired smaller 2009 summer classes than they did in 2008. [See "Some Firms Scale Back Summer Programs in Tough Economy," Texas Lawyer , Oct. 27, page 1. ]
Seven firms among Texas' largest 25 did not respond to requests for information about their 2009 summer programs before Texas Lawyer 's presstime on March 19: Brown McCarroll; Clark, Thomas & Winters; Fulbright & Jaworski; Gardere; King & Spalding; K&L Gates, and Munsch Hardt Kopf & Harr.
"It's just a sign of the times when you're trying to cut expenses and laying off people that you ask 'Why spend money on the summer associate program?' " says William C. Cobb, a Houston recruiter and consultant. All firms have conservative budgets this year and are cutting costs where possible, such as canceling annual firm meetings or holding them in a firm office rather than at an off-site resort, he says.
Cobb says most firms will continue with their summer associate programs to maintain good public relations with potential future employees. "But I bet all the summer associate programs will do things a lot more cheaply than is normally done," he says. "They will cut back on entertainment, parties and buying expensive wines."
Despite layoffs, two large Texas-basedfirms are continuing with their 2009 summer associate programs. Baker Botts has hired 83 summer associates for its offices in Austin, Dallas and Houston, writes Rachel S. Koenig in an e-mail message. She is the firm's director of recruiting and development. The firm employed 124 summer associates in Texas in 2008. The Houston-based firm, which laid off lawyers and staff earlier this year, declines to specify the number of layoffs. [See "Baker Botts Layoffs," Tex Parte , March 13, 2008. ] It employed 554 lawyers in Texas and 825 firm-wide as of Jan. 1.
Why is the firm continuing with a summer program despite recent layoffs? "It is absolutely vital to keep recruiting during an economic recession," Koenig writes.
Another firm that had layoffs, according to two former associates and three legal recruiters who requested anonymity, was Andrews Kurth. [See "Layoffs at Andrews Kurth," Tex Parte , March 3, 2008 ]. The firm declines comment about the layoffs reported in Tex Parte.
But the Houston-based firm is continuing its summer program. The firm has hired 31 summer associates, says Alexis J. Gomez, hiring partner for the firm's Houston office. The firm employed 328 lawyers in Texas and 390 firm-wide as of Jan. 1.
Andrews Kurth hired a smaller number of summer associates for 2009, compared to the 51 Texas summer associates hired in 2008, due to a "record number of acceptances from our 2008 summer program and in order to accommodate the firm's future needs," Gomez writes in an e-mail message. The firm made full-time job offers to 29 of its 34 second-year 2008 summer associates, and 19 of those students accepted jobs with the firm beginning in the fall of 2009. "We also expect to scale back our [summer associate] entertainment in order to focus more on the firm's core values in 2009," he writes.
Steady Approach
Bracewell & Guiliani has hired 49 summer associates for its Texas offices, says Michael S. Telle, hiring partner for the Houston-based firm. "We think it's important to maintain a steady, disciplined hiring program regardless of short term changes in the economy," Telle says.
The 451-lawyer firm hired 55 Texas summer associates in 2008. The firm looks at the summer program's expense as a long term investment, he says.
"We hope these students will spend their career with us, which will last 40 or 50 years," he says. "If we stopped hiring just because of a short-term blip in the economy, we would end up with a hole in our ranks at the associate level and that hole would exist up through the partner level."
Telle says Bracewell's smaller 2009 summer class size is due to a high acceptance rate by 2008 summer associates who accepted jobs for the fall of 2009. The firm offered jobs to 38 of its 42 second-year summer associates in 2008, and 24 of those 2Ls have accepted full-time jobs with Bracewell beginning in the fall of 2009. [See "BigTex Firms' Acceptance Rates Consistent in '08," Texas Lawyer , Dec.15, 2008, page 1 ].
Dallas-based Thompson & Knight has hired 22 summer associates, says J. Holt Foster, hiring partner for the 432-lawyer firm. Last summer the firm employed 36 summer associates but decided to decrease its 2009 summer program when the economy continued to slow down in the second half of 2008, he says. Foster says the summer associate program is an integral part of the firm's future.
"You need to be long-term sighted," he says. "You always want to make sure, as a top tier firm, that you put yourself in a position to find the most talented students and create a relationship with them. We're in this for a marathon, not for a sprint."
Washington, D.C.-based Patton Boggs has hired nine summer associates for its Texas office, says Eric White, hiring partner for the firm's Dallas office. The firm employs 104 lawyers in Texas and 540 firm-wide.
"We're still going to have our format as outlined for our summer associate program, which is first half only for six to seven weeks," White says. "We have no plan to scrap it or reduce it or anything like that."
The firm employed 16 Texas summer associates in 2008 and decided, when recruiting for the summer 2009 class during the fall of 2008, that a smaller class would be appropriate this summer. "With the uncertainty of the economy, we thought it was prudent to have a smaller class," White says.
Less Lavish
Dallas-based Haynes and Boone also is reducing entertainment costs for the approximately 56 law students it is bringing in to work in its Texas offices as summer associates, says Thomas H. Yang, the 464-lawyer firm's hiring partner. In 2008, the firm employed 71 Texas summer associates.
"In general we've always been cost conscious about expenses, not just for the summer," he says. "Rather than go to the nicest restaurants in town for lunches and dinners, we can go to more reasonably priced restaurants," he says.
Yang says that the firm's budget for dollars spent per recruit is less than it has been in previous years but that it's important for the firm to hire summer associates, despite the economy. "We take a longer term view, and therefore I think it is important for us to continue to recruit and attract the top students to the firm," he says.
Glenn D. West, managing partner of the Dallas office of New York-based Weil, Gotshal & Manges, says it would be "imprudent, if not offensive" for a firm to not be trying to cut costs in this environment. Weil, Gotshal has hired 25 summer associates for its offices in Austin, Dallas and Houston, West says. The firm employs 128 lawyers in Texas and 1,365 firm-wide. In 2008, the firm employed 40 Texas associates.
"We've never had a highly entertainment-oriented summer associate program," West says. "I'm not even sure that there is much additional cutting to do. We certainly will be looking at it," he says.
But West notes that recruiting is an essential firm expense. "There may be a lot of things one should do, in this environment [to reduce costs], but stopping or thwarting recruiting is not one of them, in our opinion," he says.
"A law firm is a bit like a fishing stream," West says. "If you don't have the spring pumping new water into the stream, it can stagnate."
Thomas S. Leatherbury, hiring partner for Houston-based Vinson & Elkins, agrees that summer associate programs are a necessary firm expense.
"It's an expensive process, but it is the future of the firm," Leatherbury says. "We hire most of our [entry level] lawyers from the summer program. It is very important to us to hire exceptional legal talent, and that's where we get it from, our summer program."
The firm, which employs 532 lawyers in Texas and 736 firm-wide, has hired 119 summer associates, about the same number of summer associates the firm hired in 2008, he says.
Hunton & Williams also has hired the same number of summer associates for its Texas offices — five students — as it did in 2008, says Patrick E. Mitchell, the managing partner of the Dallas office of the Richmond, Va.-based firm.
"We always planned on having five, and that is what we've got, and we're looking forward to it," he says. The firm employs 135 lawyers in Texas and 976 firm-wide. Mitchell says it is important for firms to have summer associate programs despite an uncertain economy. "The only product we sell is people," he says.
At San Antonio-based Cox Smith Matthews, 17 or 18 students will be working at the firm this summer, says Scott B. Bankler, chairman of the recruiting committee of the 127-lawyer firm. In 2008, Cox Smith hired 19 summer associates.
"We're taking a look at expenses, given the economy, but we hope we can run a similar program to those in previous years," Bankler says.
Fort Worth-based, 126-lawyer Kelly Hart & Hallman has hired seven summer associates, a few less than the nine students the firm hired in 2008, says firm recruiter Prissy Moore.
Thompson, Coe, Cousins & Irons, with 104 lawyers, has hired six students as summer associates, says Ellen M. Van Meir, a partner in Dallas and chairwoman of the firm's associate and recruiting committee. "The program is still going forward," she says. The Dallas-based firm employed 10 students during its 2008 summer associate program.
Five other large firms reported the number of students hired for the 2009 summer associate programs in the firms' Texas offices. Dallas-based Akin Gump Strauss Hauer & Feld has hired 26 summer associates, says spokeswoman Sheila Turner. Jackson Walker, based in Dallas, has hired 24 summer associates, recruiting director Kim DiLallo writes in an e-mail. Cleveland-based Jones Day, which has offices in Dallas and Houston, has hired 41 summer associates, says Kathy Shea, recruiting manager for the Dallas office. Dallas-based Locke Lord Bissell & Liddell has hired 38 Texas associates, firm spokeswoman Julie Gilbert writes in an e-mail. Strasburger & Price, based in Dallas, has hired six summer associates, writes Linsi Walker, the firm's recruiting and professional development manager, in an e-mail.
Friday, March 13, 2009
Interviewing with small firms
As the number of larger firms laying off associates increases, the focus on small firms grows. The folks over at Above the Law had some great ideas:
I work for a small law firm in a major metropolitan area that is in the enviable position of hiring right now. We are getting a flood of Big Law resumes. I get to hear all of you pedigreed, ambitious, driven, hard-working and talented attorneys crash and burn without even knowing you're doing it. Here is my advice on how to actually get the job, especially if it's with a smaller, scrappier law firm than you're used to. In no particular order:
1. Nobody Cares. Your resume speaks for itself, and the attorneys who are interviewing you are well aware that you come from BigLaw stock, have an Ivy League degree, fancy clerkships or once worked for Famous Attorney. Keep in mind that right now, you're sitting across the table from attorneys who once did not get the job with BigLaw, probably because of you. They have not forgotten this, and Schadenfreude is still alive and well. Bragging about your BigLaw experience will make them loathe you. If they ask you about BigLaw, answer the questions but don't go on and on about how much you loved that high salary and perks that kept you tethered to your desk. Your interviewers absolutely do not want to hear it. Conversely, avoid denigrating your BigLaw experience because...
2. Nobody Likes A Whiner. Don't bitch about how you're secretly grateful you're out of that hellhole because you hated the BigLaw experience and the high salary and perks that kept you tethered to your desk. Your interviewers might believe you, but if you're denigrating your prior firm, you're most likely going to also bad-mouth ours. Keep in mind that your interviewers might once have had, or still have, BigLaw connections. Their spouses might still work for BigLaw. Their parents, siblings or children might work for BigLaw. This law firm might have once poached a chunk of attorneys from BigLaw. You never know.
Some notes about fitting in, after the jump.
3. Figure Out How To Fit In. This is the single biggest reason why the BigLaw candidates are getting rejected. We're looking for attorneys who will fit in seamlessly with our firm culture, which is vastly different from BigLaw. If you're used to working in teams, you won't be doing that here, because you will be running your own cases and won't have anyone else to rely upon. When this was told to one candidate, rather than praise this method and explain how well he'll be able to do that, he said simply, "I've never done that before." That may be true, but that's not what we want to hear. If you've never done that before, be honest about it, but follow up with an explanation of how you plan to remedy that quickly and do that over and over again, brilliantly and while adding value to the firm. Adaptability is key.
4. Dress Appropriately. All of you know how to dress for a job interview, but leave your fancy cuff links, expensive embossed portfolio, diamond jewelry (even the tasteful studs), and logoed accessories at home. Wearing them will remind your interviewers how high your salary was at BigLaw, which may be more than they're currently making right now, and they will hate you.
5. Show Respect for Your Elders. One of the hiring attorneys at my firm is an extremely senior partner, and he looks his age. What the candidates do not know is that despite his doddering exterior, he is brilliant and scrutinizing. He did not get this task because he's nearing retirement and needs something to do. He got it because everybody respects his opinion. During one interview, the candidate apparently mistook him for her grandfather and spoke to him like he had dementia: "Well aren't you sweet!" She will not be back. He may be old, but he deserves the same amount of respect as your peers. Assuming you do in fact respect your peers.
I work for a small law firm in a major metropolitan area that is in the enviable position of hiring right now. We are getting a flood of Big Law resumes. I get to hear all of you pedigreed, ambitious, driven, hard-working and talented attorneys crash and burn without even knowing you're doing it. Here is my advice on how to actually get the job, especially if it's with a smaller, scrappier law firm than you're used to. In no particular order:
1. Nobody Cares. Your resume speaks for itself, and the attorneys who are interviewing you are well aware that you come from BigLaw stock, have an Ivy League degree, fancy clerkships or once worked for Famous Attorney. Keep in mind that right now, you're sitting across the table from attorneys who once did not get the job with BigLaw, probably because of you. They have not forgotten this, and Schadenfreude is still alive and well. Bragging about your BigLaw experience will make them loathe you. If they ask you about BigLaw, answer the questions but don't go on and on about how much you loved that high salary and perks that kept you tethered to your desk. Your interviewers absolutely do not want to hear it. Conversely, avoid denigrating your BigLaw experience because...
2. Nobody Likes A Whiner. Don't bitch about how you're secretly grateful you're out of that hellhole because you hated the BigLaw experience and the high salary and perks that kept you tethered to your desk. Your interviewers might believe you, but if you're denigrating your prior firm, you're most likely going to also bad-mouth ours. Keep in mind that your interviewers might once have had, or still have, BigLaw connections. Their spouses might still work for BigLaw. Their parents, siblings or children might work for BigLaw. This law firm might have once poached a chunk of attorneys from BigLaw. You never know.
Some notes about fitting in, after the jump.
3. Figure Out How To Fit In. This is the single biggest reason why the BigLaw candidates are getting rejected. We're looking for attorneys who will fit in seamlessly with our firm culture, which is vastly different from BigLaw. If you're used to working in teams, you won't be doing that here, because you will be running your own cases and won't have anyone else to rely upon. When this was told to one candidate, rather than praise this method and explain how well he'll be able to do that, he said simply, "I've never done that before." That may be true, but that's not what we want to hear. If you've never done that before, be honest about it, but follow up with an explanation of how you plan to remedy that quickly and do that over and over again, brilliantly and while adding value to the firm. Adaptability is key.
4. Dress Appropriately. All of you know how to dress for a job interview, but leave your fancy cuff links, expensive embossed portfolio, diamond jewelry (even the tasteful studs), and logoed accessories at home. Wearing them will remind your interviewers how high your salary was at BigLaw, which may be more than they're currently making right now, and they will hate you.
5. Show Respect for Your Elders. One of the hiring attorneys at my firm is an extremely senior partner, and he looks his age. What the candidates do not know is that despite his doddering exterior, he is brilliant and scrutinizing. He did not get this task because he's nearing retirement and needs something to do. He got it because everybody respects his opinion. During one interview, the candidate apparently mistook him for her grandfather and spoke to him like he had dementia: "Well aren't you sweet!" She will not be back. He may be old, but he deserves the same amount of respect as your peers. Assuming you do in fact respect your peers.
Wednesday, February 25, 2009
Black in Back - Bankruptcy Lawyers Regain Glory, Demand
According to Nathan Koppel of the WSJ, Corporate law firms are facing a boom in bankruptcy work but the rising demand in services has the firms fighting to hold on to their bankruptcy attorneys.
To claim a share of the lucrative bankruptcy market, firms need a stable of restructuring partners with loyal client followings and big-case experience. It costs more for firms to both retain that kind of talent or to hire such lawyers on the open market.
Paul, Hastings, Janofsky & Walker LLP last year offered more than $5 million a year to land Luc Despins, a New York lawyer who has represented creditors in many high-profile bankruptcies, including those of Enron Corp. and Lehman Bros. Holdings Inc. Paul Hastings, according to a partner at the firm, also guaranteed Mr. Despins that he would maintain his pay level for three years -- a rarity in the legal industry, where partner compensation typically fluctuates along with a firm's overall profit.
Mr. Despins declines to discuss his compensation. He says he joined Paul Hastings because it has a broad corporate client base, both domestically and abroad.
"When you see headhunters descending like locusts on any bankruptcy professional who can fog a mirror, then you know the market is a little frothy," says New York bankruptcy attorney John Bicks, who says his phone "rings constantly" from headhunters.
Corporate restructurings in court can be particularly lucrative for firms, often requiring a small army of lawyers to toil years before a matter is resolved. In the past two years, Kirkland & Ellis LLP has earned at least $225 million in fees in completed corporate bankruptcy cases, while Sidley Austin LLP and Willkie Farr & Gallagher LLP have each earned more than $100 million in completed corporate bankruptcies during that time, according to BankruptcyProfessional.com, which tracks fees in bankruptcies involving public companies.
Many law firms are looking to either add lawyers to their existing bankruptcy practices or to start a department from scratch, leading to a surge in hiring that is enabling some lawyers to increase their compensation by 20% or more if they are willing to jump ship to a competitor, New York recruiter Alisa Levin says. "Bankruptcy lawyers had their heyday years ago, and they have waited a long time to get back," she says.
Andrews Kurth LLP, a Houston-based firm with more than 400 lawyers, would like to deepen its bankruptcy bench, but it has been put off by many lawyers' salary demands, says Hugh Ray, head of restructuring at the firm. "Most lawyers want 20% to 30% over the firm's market [salary] rate," he says. "They feel they have been making less than their colleagues for years, and they think it's payback time."
New York bankruptcy attorney Raniero D'Aversa Jr. says that when he started searching for another job in 2007 he drew up a wish list of 20 law firms. Most of the firms agreed to meet with him, he says, and many offered attractive compensation packages.
"There were so many options," says Mr. D'Aversa. "There are a lot of firms eagerly looking to build in this space." He ended up taking a job last year at Orrick, Herrington & Sutcliffe LLP, which is paying him about $2.5 million in annual compensation, a pay raise of about 25%, according to people familiar with the compensation package.
Hiring activity is particularly frenzied in New York City and Wilmington, Del., the primary venues for corporate bankruptcy filings.
To claim a share of the lucrative bankruptcy market, firms need a stable of restructuring partners with loyal client followings and big-case experience. It costs more for firms to both retain that kind of talent or to hire such lawyers on the open market.
Paul, Hastings, Janofsky & Walker LLP last year offered more than $5 million a year to land Luc Despins, a New York lawyer who has represented creditors in many high-profile bankruptcies, including those of Enron Corp. and Lehman Bros. Holdings Inc. Paul Hastings, according to a partner at the firm, also guaranteed Mr. Despins that he would maintain his pay level for three years -- a rarity in the legal industry, where partner compensation typically fluctuates along with a firm's overall profit.
Mr. Despins declines to discuss his compensation. He says he joined Paul Hastings because it has a broad corporate client base, both domestically and abroad.
"When you see headhunters descending like locusts on any bankruptcy professional who can fog a mirror, then you know the market is a little frothy," says New York bankruptcy attorney John Bicks, who says his phone "rings constantly" from headhunters.
Corporate restructurings in court can be particularly lucrative for firms, often requiring a small army of lawyers to toil years before a matter is resolved. In the past two years, Kirkland & Ellis LLP has earned at least $225 million in fees in completed corporate bankruptcy cases, while Sidley Austin LLP and Willkie Farr & Gallagher LLP have each earned more than $100 million in completed corporate bankruptcies during that time, according to BankruptcyProfessional.com, which tracks fees in bankruptcies involving public companies.
Many law firms are looking to either add lawyers to their existing bankruptcy practices or to start a department from scratch, leading to a surge in hiring that is enabling some lawyers to increase their compensation by 20% or more if they are willing to jump ship to a competitor, New York recruiter Alisa Levin says. "Bankruptcy lawyers had their heyday years ago, and they have waited a long time to get back," she says.
Andrews Kurth LLP, a Houston-based firm with more than 400 lawyers, would like to deepen its bankruptcy bench, but it has been put off by many lawyers' salary demands, says Hugh Ray, head of restructuring at the firm. "Most lawyers want 20% to 30% over the firm's market [salary] rate," he says. "They feel they have been making less than their colleagues for years, and they think it's payback time."
New York bankruptcy attorney Raniero D'Aversa Jr. says that when he started searching for another job in 2007 he drew up a wish list of 20 law firms. Most of the firms agreed to meet with him, he says, and many offered attractive compensation packages.
"There were so many options," says Mr. D'Aversa. "There are a lot of firms eagerly looking to build in this space." He ended up taking a job last year at Orrick, Herrington & Sutcliffe LLP, which is paying him about $2.5 million in annual compensation, a pay raise of about 25%, according to people familiar with the compensation package.
Hiring activity is particularly frenzied in New York City and Wilmington, Del., the primary venues for corporate bankruptcy filings.
Labels:
Anrdrews Kurth,
bankruptcy,
recruiting,
Texas Law Firms
Wednesday, February 18, 2009
Where Did All the Jobs Go?
These days it seems like every lawyer has been touched by this economic downturn. Either you’ve been laid off from your law job or someone you know has been laid off from their law firm. And the layoffs have now finally reached the Texas market. Well, you’re not alone. It’s been reported that in 2008, around 1800 legal jobs were lost (including lawyers and legal staff). It’s also been reported that in just January and so far in February around 3000 legal jobs have been lost nationally, a number of those jobs here in the Texas market. Those numbers don’t include unreported layoffs or secret layoffs from big law firms that so many of you have been telling us about. Faced with losing a job, the obvious question is what do I do next.
Nationally, lawyers are retooling themselves. They’re retooling their legal resumes to show a broader depth of law practice experience, which is particularly a great idea for the transactional lawyers out there with corporate, finance and real estate experience. While litigation and bankruptcy practices are busy, it’s best to show that you have some legal experience in these busier practices. Lawyers are considering law jobs that pay less, and in some instances a lot less than their previous law firm job. They are thinking about geographic moves to locations with no connection other than a good legal job. And they’re even thinking about non-legal jobs until the economy improves. In these times, it pays to be creative and think outside the box about how to best market your legal skills and distinguish yourself from every other lawyer or candidate out there.
Nationally, lawyers are retooling themselves. They’re retooling their legal resumes to show a broader depth of law practice experience, which is particularly a great idea for the transactional lawyers out there with corporate, finance and real estate experience. While litigation and bankruptcy practices are busy, it’s best to show that you have some legal experience in these busier practices. Lawyers are considering law jobs that pay less, and in some instances a lot less than their previous law firm job. They are thinking about geographic moves to locations with no connection other than a good legal job. And they’re even thinking about non-legal jobs until the economy improves. In these times, it pays to be creative and think outside the box about how to best market your legal skills and distinguish yourself from every other lawyer or candidate out there.
Labels:
bankruptcy,
job losses,
layoffs,
legal,
litigation
Thursday, February 5, 2009
And the hits keep on coming...
According to the Daily Journal, the pace of law firm layoffs accelerated drastically nationwide in January, but Atlanta's largest firms do not yet appear to be caught up in large-scale terminations of attorneys and staff.
Of the seven large Atlanta-based firms contacted for this story, four confirmed layoffs of attorneys or staff, with varying degrees of detail. Two firms said they haven't had layoffs and another declined to comment. Recruiters at six firms contacted by the Daily Report, however, said they're seeing résumés from lawyers at all the large firms.
Since the beginning of the year, about 30 firms nationwide have announced layoffs totaling 1,528 staff and lawyers--compared to 1,762 layoffs announced by firms for all of 2008, according to Lawshucks.com. The Web site has meticulously compiled national layoff figures from confirmed reports in the legal press in a feature called Layoff Tracker.
In the last week of January alone, a whopping 858 lawyers and staff lost their jobs at big law firms nationwide, according to Layoff Tracker.
The figures compiled by the Layoff Tracker do not include so-called “stealth layoffs” that have not been confirmed, where firms lay off personnel in small increments in order not to attract attention.
Atlanta has not seen the large-scale layoffs that have hit firms in New York and California that invested heavily in structured finance practices. San Francisco's Orrick, Herrington and Sutcliffe, for example, announced in November it was laying off 75 associates, counsel and staff.
Firms in other cities that publicly are announcing cuts are shedding eye-popping numbers of lawyers and staff. Just last week, San Francisco's Morrison and Foerster announced it was laying off 201 people: 53 lawyers and 148 staff.
Other announcements last week that sent shockwaves through the national legal community came from Palo Alto, Calif.'s Wilson Sonsini, which cut 113 people (45 lawyers and 68 staff) and Boston's Ropes and Gray, which let go of 106 staff. The British firm Linklaters terminated 270 people: 120 lawyers and 150 staff.
Atlanta's legal recruiters say that most of the city's big firms are laying off lawyers, but they agree that the numbers, so far, are smaller than those seen in California, Chicago and New York.
“We're seeing firms very quietly trying to trim the fat, I think, at all levels from equity partner on down,” said Ilene Rosh, a recruiter at Hughes Consultants.
“We're seeing résumés from a lot of large firms that we don't normally see,” said Richard Rice, the head of attorney recruiting at firstPRO.
Of the seven large Atlanta-based firms contacted for this story, four confirmed layoffs of attorneys or staff, with varying degrees of detail. Two firms said they haven't had layoffs and another declined to comment. Recruiters at six firms contacted by the Daily Report, however, said they're seeing résumés from lawyers at all the large firms.
Since the beginning of the year, about 30 firms nationwide have announced layoffs totaling 1,528 staff and lawyers--compared to 1,762 layoffs announced by firms for all of 2008, according to Lawshucks.com. The Web site has meticulously compiled national layoff figures from confirmed reports in the legal press in a feature called Layoff Tracker.
In the last week of January alone, a whopping 858 lawyers and staff lost their jobs at big law firms nationwide, according to Layoff Tracker.
The figures compiled by the Layoff Tracker do not include so-called “stealth layoffs” that have not been confirmed, where firms lay off personnel in small increments in order not to attract attention.
Atlanta has not seen the large-scale layoffs that have hit firms in New York and California that invested heavily in structured finance practices. San Francisco's Orrick, Herrington and Sutcliffe, for example, announced in November it was laying off 75 associates, counsel and staff.
Firms in other cities that publicly are announcing cuts are shedding eye-popping numbers of lawyers and staff. Just last week, San Francisco's Morrison and Foerster announced it was laying off 201 people: 53 lawyers and 148 staff.
Other announcements last week that sent shockwaves through the national legal community came from Palo Alto, Calif.'s Wilson Sonsini, which cut 113 people (45 lawyers and 68 staff) and Boston's Ropes and Gray, which let go of 106 staff. The British firm Linklaters terminated 270 people: 120 lawyers and 150 staff.
Atlanta's legal recruiters say that most of the city's big firms are laying off lawyers, but they agree that the numbers, so far, are smaller than those seen in California, Chicago and New York.
“We're seeing firms very quietly trying to trim the fat, I think, at all levels from equity partner on down,” said Ilene Rosh, a recruiter at Hughes Consultants.
“We're seeing résumés from a lot of large firms that we don't normally see,” said Richard Rice, the head of attorney recruiting at firstPRO.
Labels:
Lawshucks.com,
layoffs,
Morrison and Foerster
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