JD SUPRA — 2020 was the year of The Great Pause. While law firms did not turn to layoffs as seen in previous downturns, they hit the pause button on hiring almost entirely. By the end of 2020, firms were awash with cash, low on talent and beginning to see signs of a recovering market. In 2021, law firms of all sizes in all cities found themselves locked in a battle to recruit and retain highly skilled lawyers amid demand for litigators and M&A and corporate transactional lawyers. Since then, law firms have been scrambling to replenish their attorney ranks. Firms used the pandemic slow-down as an opportunity to add lateral talent to their firms in the third and fourth quarters of 2020, allowing them to enter 2021 at an advantage. As we reported in our 2020 State of the Legal Industry report, the fourth quarter of 2020 brought an uptick in lateral hiring at all levels due to a steadier influx of client work and opportunities. Lateral hiring was also happening at record-breaking paces due to the wider use of technology. Interviews were being conducted remotely and quickly for the first time. In order for law firms to win the race for talent in the competitive hiring market of today, they’ve had to both pull out all the stops both financially and creatively to attract the top-level talent that they need. We began to see firms paying upwards of 50% to outside recruiters, some turning to their alumni networks and offering cash bonuses for successful hiring referrals. Their money strategies didn’t stop there. Law firms have offered outsized signing bonuses in an effort to lure attorneys to their firms.