Why Almost No Law Firms Care About Legal Recruiter Fees

Many attorneys are under the mistaken belief that law firms care if a legal recruiter is involved in their placement. When you consider the totality of what is going on, this is not the truth at all. What should concern you is if a law firm does not use a legal recruiter for its placement needs.

 

If a law firm has enough work to keep you busy, they will not care about paying a placement fee.

Law firms that have a lot of work could not care less about paying a placement fee. Let’s do the math.
 

• If you are an associate making $200,000 a year, the odds are that your billing rate will be somewhere north of $500 an hour – potentially as much as $800.
• Assuming, conservatively, that you bill an average of 2,000 hours a year, you will bring in between $1,000,000 and $1,600,000 in fees for your firm over a year.
• That means that there will be an extra $800,000 to $1,400,000 in revenue above what you take home.
• For an associate who makes $200,000 a year, the fee that a recruiter would charge will typically be between $30,000 and $50,000 (two weeks of work).

 

From a business standpoint, using a legal recruiter is a no-brainer business proposition for almost all law firms.

The law firm will likely attach conditions that state if you stay for less than a year, a portion (or all) of the fee will be refunded. Therefore, unless the firm earns a great deal of money from you, the recruiter will not even receive the fee.
 
Some law firms may also wait a full year before paying the fee, so they take on minimal risk.
Most law firms will pay the fee over time – some a portion every month, or six months.
 
In return, the recruiter needs to find you, get jobs from the firm, prepare you for interviews, screen you for the firm, and pay all of its overhead required to run a business. The recruiting firm is the firm’s advocate in the market and provides them with access to the sort of talent they need to continue operating a business.
 
While a $30,000 to $50,000 fee may look like a lot of money, the costs of running a recruiting firm mean that most recruiters earn far less than the attorneys they end up working with and placing.
 
Quite honestly, a fee is the least of a firm’s concerns when they are hiring you. They are more concerned with whether you are a good fit, how hard you will work, your advancement potential, and more.
 
The three characteristics most law firms are concerned with are:
 

• Can you do the job? Do you have the credentials and experience to do the work?
• Can you be managed? Do you look like you will do what you are asked to and not make trouble?
• Will you do the job long term? Does your experience indicate you are likely to stay in the job and commit to it?

 
It is challenging for law firms to find people with these three characteristics. Most attorneys do not have the qualifications to do the work, but if they do, they may have something in their background that shows they are unlikely to be manageable or commit to the job. Examples include losing a previous job, having interests on their resume incompatible with the work, or otherwise looking like they are interested in doing something else based on their past employment, degree, and more.
 
The firm is also concerned with making money and having people to do the work. For this reason, it is common for law firms to use recruiters when hiring.
 
Any firm bothered by a placement fee does not believe it can make money from you – and this is a concern. They may not care about your background and are willing to hire the cheapest person that walks in the door with the idea that you are expendable. They have so little confidence in their future that they are often unwilling to hire you, even when the recruiter offers a guarantee that all but assures your profitability. 
 

If you are a partner with business, a law firm will care less about paying a placement fee.

Paying a placement fee is even less of a concern with a partner. Partners tend to be nothing but profit for law firms, and not paying a fee on a partner is hard to imagine. Any firm that has a fundamental understanding of business is likely not to have an issue paying for you.
 
A partner who makes $1,000,000 a year typically generates $3,000,000 to $4,000,000 of business for their firm each year. The extra revenue beyond what this partner receives will be somewhere in the neighborhood of $2,000,000 to $3,000,000 per year. The fee on the typical partner making $1,000,000 per year is likely to be around $150,000 to $250,000. In most cases, the law firm will only pay if the partner’s actual collections end up hitting the target the recruiter and partner represented.
 
A fee is meaningless to most law firms because you represent tremendous profit potential compared to any cost associated with hiring you. The idea that a law firm would care about a fee that is a small percentage of their future and current costs associated with hiring you is ludicrous. Law firms want recruiters out there that are promoting them and steering profitable partners to them. The idea that the law firm would not pay a small fee to acquire a multi-million dollar annual revenue stream is nonsensical.
 

If a law firm is a competitive place to get a position, they will not care about paying a placement fee.

Any law firm interested in hiring the best person for the job will hardly ever care about paying placement fees. They are likely to be concerned with your work experience, educational qualification, work stability, motivation, partnership potential (if applicable), how your personality meshes with their culture, and other associated aspects of your background. If the law firm has the least bit of concern with these sorts of things, a fee associated with hiring you is not going to tip the balance against you in the least.
 
From a law firm’s perspective, it is not easy to find the best people. It is not easy in any business. When hiring legal placement professionals for BCG Attorney Search, I often need to review 2,000+ applications and speak with 20 or more of these people before I find one person I can make an offer to. For two recent hires I made, I reviewed 2,500 applications, interviewed 20 people, and made two offers. That is a ton of work.
 
Moreover, I need to spend countless hours reviewing resumes and speaking with unqualified people for each position. That is far too much work and not something most legal employers are interested in doing – they would rather a great person show up and eliminate this costly and time-consuming work. That is why they use legal recruiters.
 
Also, law firms are running businesses and constantly losing people and trying to maintain a good brand with their clients – by attracting and keeping the best attorneys to do the work. All a law firm is ultimately selling are its people, and the best people are a priority for the firm.
 
While there is a traditional belief that consumer-facing law firms that do things like personal injury, lemon law, bankruptcy, immigration, and other similar practices may not use legal recruiters because they may not be as competitive to get into, we have found that far from the truth. Over time, some of our best and most selective clients have been firms that do consumer-facing work. These firms are no different from many of the largest and credential-focused firms when it comes to their selectivity and attorney needs. Consumer-facing law firms also need people who are committed to the job, focused on a given practice area, and look like they are capable of advancing. In all honesty, apart from the practice area and perhaps more of a focus on hiring attorneys from schools that look pleasing to clients, most consumer-facing law firms face the same hiring demands as the largest law firms.
 

Almost every law firm uses legal recruiters to fill openings.

There are very few law firms that do not use legal recruiters to fill openings. If any law firm says they do not use legal recruiters to fill openings, this sentiment is generally short-lived – in almost all cases where a law firm has told us they do not use legal recruiters, they almost always come back later and use us. Good people are crucial to the success of their business, and the economics of running a law firm make using a legal recruiter a no brainer for law firms. Consequently, there are hardly any law firms that are desirable places to work that do not use legal recruiters. If a law firm does not use legal recruiters to fill openings, they are often fragile financially and uncertain about their future work.
About Harrison Barnes

Harrison Barnes is a prominent figure in the legal placement industry, known for his expertise in attorney placements and his extensive knowledge of the legal profession.

With over 25 years of experience, he has established himself as a leading voice in the field and has helped thousands of lawyers and law students find their ideal career paths.

Barnes is a former federal law clerk and associate at Quinn Emanuel and a graduate of the University of Chicago College and the University of Virginia Law School. He was a Rhodes Scholar Finalist at the University of Chicago and a member of the University of Virginia Law Review. Early in his legal career, he enrolled in Stanford Business School but dropped out because he missed legal recruiting too much.

Barnes' approach to the legal industry is rooted in his commitment to helping lawyers achieve their full potential. He believes that the key to success in the legal profession is to be proactive, persistent, and disciplined in one's approach to work and life. He encourages lawyers to take ownership of their careers and to focus on developing their skills and expertise in a way that aligns with their passions and interests.

One of how Barnes provides support to lawyers is through his writing. On his blog, HarrisonBarnes.com, and BCGSearch.com, he regularly shares his insights and advice on a range of topics related to the legal profession. Through his writing, he aims to empower lawyers to control their careers and make informed decisions about their professional development.

One of Barnes's fundamental philosophies in his writing is the importance of networking. He believes that networking is a critical component of career success and that it is essential for lawyers to establish relationships with others in their field. He encourages lawyers to attend events, join organizations, and connect with others in the legal community to build their professional networks.

Another central theme in Barnes' writing is the importance of personal and professional development. He believes that lawyers should continuously strive to improve themselves and develop their skills to succeed in their careers. He encourages lawyers to pursue ongoing education and training actively, read widely, and seek new opportunities for growth and development.

In addition to his work in the legal industry, Barnes is also a fitness and lifestyle enthusiast. He sees fitness and wellness as integral to his personal and professional development and encourages others to adopt a similar mindset. He starts his day at 4:00 am and dedicates several daily hours to running, weightlifting, and pursuing spiritual disciplines.

Finally, Barnes is a strong advocate for community service and giving back. He volunteers for the University of Chicago, where he is the former area chair of Los Angeles for the University of Chicago Admissions Office. He also serves as the President of the Young Presidents Organization's Century City Los Angeles Chapter, where he works to support and connect young business leaders.

In conclusion, Harrison Barnes is a visionary legal industry leader committed to helping lawyers achieve their full potential. Through his work at BCG Attorney Search, writing, and community involvement, he empowers lawyers to take control of their careers, develop their skills continuously, and lead fulfilling and successful lives. His philosophy of being proactive, persistent, and disciplined, combined with his focus on personal and professional development, makes him a valuable resource for anyone looking to succeed in the legal profession.

About BCG Attorney Search

BCG Attorney Search matches attorneys and law firms with unparalleled expertise and drive, while achieving results. Known globally for its success in locating and placing attorneys in law firms of all sizes, BCG Attorney Search has placed thousands of attorneys in law firms in thousands of different law firms around the country. Unlike other legal placement firms, BCG Attorney Search brings massive resources of over 150 employees to its placement efforts locating positions and opportunities its competitors simply cannot. Every legal recruiter at BCG Attorney Search is a former successful attorney who attended a top law school, worked in top law firms and brought massive drive and commitment to their work. BCG Attorney Search legal recruiters take your legal career seriously and understand attorneys. For more information, please visit www.BCGSearch.com.