Timing for Lateral Move - End of Year? Forum

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LawMaster97

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Timing for Lateral Move - End of Year?

Post by LawMaster97 » Tue Oct 12, 2021 7:43 am

I’m exploring a lateral move, but was planning to wait to give two weeks notice until after my bonus hits in January. I spoke with a recruiter who suggested that I don’t need to do this, as the new firm would guarantee the year end bonus in this hot lateral market, and that this wouldn’t affect the size of the signing bonus. I don’t think this is right, as I think I could negotiate a higher signing bonus if I wait to start at the new firm until after my bonus is paid out (would be a lower total cost to hire for the new firm). Does anyone have any thoughts on the ideal strategy? It seems like it would be foolish to leave in December and miss out on the bonus I’ve already earned at my existing firm. I’m a mid-level corporate associate at a V50 firm.

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Re: Timing for Lateral Move - End of Year?

Post by Anonymous User » Tue Oct 12, 2021 12:08 pm

Think the recruiter is right on this one. In my limited experience, firms dgaf about costs and whether you would otherwise be a cheaper hire (they won't pass the savings onto you). Another consideration is that if you start at your new firm in the beginning of the year like February, they're more likely to push to have your 2022 eoy bonus prorated. Altho this is just one data point; maybe others can chime in.

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Re: Timing for Lateral Move - End of Year?

Post by Anonymous User » Tue Oct 12, 2021 12:36 pm

Now is a good time to lateral.

eastcoast_iub

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Re: Timing for Lateral Move - End of Year?

Post by eastcoast_iub » Tue Oct 12, 2021 1:25 pm

I would wait if you can b/c you could get that money as a signing bonus instead of a reimbursement of a bonus you would otherwise get if you stayed through the end of the year.

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Re: Timing for Lateral Move - End of Year?

Post by Anonymous User » Tue Oct 12, 2021 2:27 pm

Anonymous User wrote:
Tue Oct 12, 2021 12:08 pm
Think the recruiter is right on this one. In my limited experience, firms dgaf about costs and whether you would otherwise be a cheaper hire (they won't pass the savings onto you). Another consideration is that if you start at your new firm in the beginning of the year like February, they're more likely to push to have your 2022 eoy bonus prorated. Altho this is just one data point; maybe others can chime in.
While I generally agree with the notion that firms resist passing savings onto us, wouldn't firms have a weaker argument for prorating bonuses early next year (ignoring the market cooling, etc.)? Seems like anyone lateraling could point to literally everyone else who lateraled in Q3-4 2021 and be like "yo you trued-up their EOY bonuses even though they worked for you like two months. i also want the full EOY bonus and I'll be working like 10 more months than them"

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Re: Timing for Lateral Move - End of Year?

Post by Anonymous User » Tue Oct 12, 2021 7:05 pm

This is all logical thinking, but I don’t know that it’s right at all. A full year-end bonus and any uncollected special bonus were table stakes in the offers I received and seemed to have no effect on the signing bonuses offered (neither did using a recruiter vs. not). Rather some firms just wouldn’t pay a signing bonus over $50k, $75k, or $100k while a select few will go significantly higher. I think some firms don’t want to alienate their associates by paying laterals huge signing bonuses. That said, it’s close enough to year end that you can wait and try your argument in the negotiations. It might work, but it’s a little awkward to say out loud or in an email that you deserve a greater signing bonus because they didn’t have to pay your year-end bonus (they may just offer to guarantee your first bonus).

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Re: Timing for Lateral Move - End of Year?

Post by Anonymous User » Wed Oct 13, 2021 1:14 am

Anonymous User wrote:
Tue Oct 12, 2021 2:27 pm
Anonymous User wrote:
Tue Oct 12, 2021 12:08 pm
Think the recruiter is right on this one. In my limited experience, firms dgaf about costs and whether you would otherwise be a cheaper hire (they won't pass the savings onto you). Another consideration is that if you start at your new firm in the beginning of the year like February, they're more likely to push to have your 2022 eoy bonus prorated. Altho this is just one data point; maybe others can chime in.
While I generally agree with the notion that firms resist passing savings onto us, wouldn't firms have a weaker argument for prorating bonuses early next year (ignoring the market cooling, etc.)? Seems like anyone lateraling could point to literally everyone else who lateraled in Q3-4 2021 and be like "yo you trued-up their EOY bonuses even though they worked for you like two months. i also want the full EOY bonus and I'll be working like 10 more months than them"
that's literally why im malding rn. shit dont make sense but sometimes it do be like that.

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Re: Timing for Lateral Move - End of Year?

Post by Anonymous User » Thu Oct 14, 2021 12:40 pm

Any guesses on if the lateral market will cool off by next summer?

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