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Firms taking watch-and-wait approach on hiring

Mon, Oct 13th 2008 12:00 am
Nearly every industry has encountered bumps and bruises as a result of the turbulent U.S. economy. The legal sector is no exception.

While the industry in Western New York as a whole has not seen a decrease in attorney recruitment, there certainly have been shifts in demand within the various areas of practice. As is frequently the case, there are some specialties that are running red-hot, while others are heading more toward code blue. Conversely, a handful of practice areas never seem to fall out of favor despite the economic conditions.

Whether these trends continue over the long term remains to be seen; however, there is one constant that we can be sure of - change is always afoot in the local legal recruitment market.

Upward trending

Overall, attorney recruitment opportunities in Western New York are quite favorable. Partners with books of business in any practice area are still commanding top dollar, and two- and three-year associates in most niches are in short supply.

Attorneys practicing in the areas of corporate, tax, estates and trust, health care and employee benefits have many career opportunities available to them.

The demand for patent attorneys within the law-firm setting still remains strong. Generally, intellectual-property attorneys continue to experience favorable hiring conditions, with attorneys experienced in licensing seeing the highest up-tick in demand within the last 12 months.

Requests for lawyers experienced in labor-and-employment law remain constant.

The market for experienced insurance-defense litigators and those practicing within the various subspecialties - products liability, coverage, medical malpractice, etc. - continues to be steady. Commercial litigators, in particular, are in strong demand.

Of particular note: Within the last year we saw more in-house legal positions than ever in Western New York. There were more than 10 companies and financial organizations looking to hire general counsel, division counsel or associate counsel.

Immigration lawyers have also seen an increase in interest, from small and large firms alike.

Declining specialties

Because neither Buffalo nor Rochester experienced the extraordinary real estate surge that came as a result of subprime-lending practices in larger markets, the fluctuation in demand for real estate lawyers and attorneys handling commercial lending deals has not been as extreme.

Those astronomical New York City salaries have finally leveled off and, in some instances, attorney layoffs have resulted due to the fact that there is not enough quality work to justify the high rate of pay.

Nevertheless, within the last year Western New York has seen periods where hiring slowed significantly, only to pick up again. The initial slowdown came, we believe, as a result of "watchful waiting" by prudent law-firm managers attempting to predict future inventory needs.

While other areas of the country have seen an upswing in bankruptcy work, that doesn't appear to be the case locally. Whether that trend continues remains to be seen.

Preparing for the future

While current financial market conditions have somewhat impacted attorney recruitment practices, it is important to realize that external forces of many kinds - regulatory changes, technology transformations, political activity - have always greatly influenced the demand for attorneys within specific areas of practice.

Those best insulated from future trending are those lawyers who are striving to continue or create their own profit centers.

Practitioners should also keep their networking activities strong and carefully monitor the advance sheets to ensure that they are cognizant of leading trends while planning their client-development efforts.

By keeping their eyes focused on changes in their areas of specialty, lawyers can move toward more vibrant - or complementary - practices, should the need arise. This market awareness transcends the associate ranks and can impact veteran practitioners who could lose years' worth of goodwill and good work should their field of expertise run "cold."

Alan Fenster is principal of Alan Fenster Associates Inc. in Buffalo. He can be reached at afenster@alanfenster.com.