A following or loyal client base can be highly beneficial if you are considering a move to another law firm. It is particularly attractive to firms considering senior “new hires”. Having one is also likely to mean your overall job security is very good.
Most solicitors below the level of equity partner, in my experience, do not have a following. Or at least, if a solicitor does have a following, it is not big enough to convince the partners at a new firm to make an offer of employment at senior level/bring in a new partner.
The financial value of a following (to justify a senior lateral hire) should be about equivalent to the billing by the law firm’s existing staff or partners. As a guide, in East Anglia, this will usually be in the region of around 700-1500 billable hours per annum at whatever charge out rate applies. In some cases, some partners at some law firms will look at a minimum value less than this because they already, as a firm, have work they can give to a senior lateral hire.
A simple way to quantify whether or not you have a client following is to write down:
- Each regular or loyal client or work referrer
- The type of work provided by each client/work referrer
- The typical annual value of that work
- The reasons that client/work referrer is likely to follow you to a new law firm
It should be noted that a following does not include clients that have been assigned by senior solicitors or partners unless the clients have become essentially permanently passed over to you and a long-term relationship has been established with you.
Three examples of how to quantify a following are set out below for a corporate lawyer; a wills, trusts & probate lawyer and an employment lawyer.
For the purposes of this article, I have deliberately not included other matters arising in a senior lateral hire scenario where a following is required in areas such as what potential courses of action might occur when you resign from your current firm, any restrictive covenants you have and client conflicts.
Example: Corporate lawyer
| Client or work referrer
Head of Legal at [insert name of company OR specify company/organisation is confidential] |
| Type of work
Company acquisitions; company sales; company secretarial work |
| Annual value of work
£100-£115K per annum. Over the last five years money billed and received by this client has been:
The billing year runs from [insert]. The charge out rate is £ [insert]. |
Reasons why work will follow me
|
Example: Wills, trusts and probate lawyer
| Client or work referrer
Financial services company (work referrer) |
| Type of work
The setting up of Wills. The setting up of lasting powers of attorney (LPAs). Sometimes the setting up of trust funds. |
| Annual value of work
£12-£23K per annum. Over the last five years money billed and received by this client has been:
The billing year runs from [insert]. The charge out rate is £[insert]. In addition to the above value of work for wills, trusts and probate, these clients sometimes get cross-referred to other teams within the firm. The values above reflect only wills, trusts and probate work. |
| Reasons why work will follow me
I have built up a relationship with a number of the staff at this company and as a result they consistently refer good clients to me. Staff at the company are likely to continue to send work to me if I moved to another law firm. |
Example: Employment lawyer
| Client or work referrer
HR Director and HR Officer at (company confidential). |
| Type of work
Routine enquiries, charged by the hour. The work arises sporadically as a result of the company’s changing business needs. I have been instructed on matters including:
|
| Annual value of work
£18-35K per annum. Over the last five years money billed and received by this client has been:
The billing year runs from [insert]. The charge out rate is £[insert]. I also cross-refer work not included in the above figures. For example, in the last 12 months the company’s directors recently reviewed their shareholder agreement and purchased new commercial premises; my firm was instructed on both of these matters. |
Reasons why work will follow me
|
Whether or not you are considering a move, it is a good idea to draw up a chart such as above simply to review your career position. In the event you are considering a move, Olsen Recruitment can help you to make that important move to another firm.
Olsen Recruitment can be contacted on 01603 516261 or 07960 743650 anytime, including outside of working hours.