Nearly all firms are making lateral hires, according to Hildebrandt. They do so as a way of opening up in new sectors and, therefore, chasing revenue. Brad Hildebrandt, one of the report's authors, said: 'Today, most moves are made to increase or diversify business, because revenue growth is slow.'

Culture and communication

Modest revenue growth, volatility and increased inequality between law firms are also expected to be hallmarks of the coming year. The report gives some advice on retaining key partners: 'Having a solid culture helps reduce the risk [of losing laterals], but so does communicating with these partners frequently and managing [profit per equity partner] expectations, especially if the firm is experiencing volatility.' Source: Bloomberg Business of Law