Don't Mess with Texas: Recruiters at Lateral Link speak to us about opportunities aplenty within the state's "own little energy bubble."
Have y’all ever heard the old adage ‘Don’t Mess with Texas’? Granted, the saying was created to curb littering along roadways across the state back in the 80s, but it still rings true in more ways than one. With a thriving legal market that is only continuing to flourish, Texas has long been a heavy hitter. While New York and DC rule the East Coast and Chicago is king of the Midwest, there’s something to be said about the promise of a steady market and sweltering hot summers in the South that can be cooled only by a refreshing sip of sweet tea (of which we are big fans here at Chambers Associate). Luckily, a lower cost of living in cities like Houston, Austin, and Dallas means that if you’re suffering from a sweet tea addiction like we are, you’ll have plenty more disposable income to fund it… more on that later, though. To hear about what’s hot in Texas right now (other than the sun), we spoke with Lateral Link’s Wendy Boone Jaikaran, Kelly Rizzo, and Christine Berger, and as far as we’re all concerned, the only way is Texas.
Hot or Not?
If you’re at all familiar with Texas, you’ll know that the state is full of energy – literally. “Energy has always been a solid market for us – it is Texas, after all!!” Kelly Rizzo, senior director at Lateral Link, laughs. “Our economy is almost separate from or adjacent to the rest of the country, as if we have this insulated little bubble of energy here” – and this is not exclusive to the more traditional kinds of energy production that might immediately spring to mind. Texas has seen a boom in the renewable energy and project finance space in recent years, which senior principal Wendy Boone Jaikaran thinks “has to do with people trying to take better care of the planet. People are working to reduce carbon emissions and air pollution to create a cleaner, greener environment. In order to accomplish this, companies are undertaking large-scale projects and are finally committing substantial funds and resources for the cause. Energy, Renewables, and project finance have become essential practice areas to support this development.” To this, Rizzo adds: “The market is shifting because people want more renewable energy sources and to pivot from oil and coal. Companies are noticing that shift and recognizing that you don’t necessarily sacrifice jobs when you shift to a renewable business that still drives the energy market.” Aside from the benefits from an economic and a more obvious environmental standpoint, this change “is fun because it’s kind of fresh! A few years ago, I had a couple of candidates doing more traditional work who really wanted to pivot into renewables, and it was difficult to do that,” Rizzo recalls. “Now, it’s just what everybody’s doing, so it’s exciting to see that.”
“Our economy is almost separate from or adjacent to the rest of the country, as if we have this insulated little bubble of energy here."
It’s similarly exciting and “really interesting because I’m your stereotypical Texan with a big SUV and I never thought the energy market would really change,” Boone Jaikaran confesses when we ask how oil and gas practices have been affected by the spike in renewable energy work. She continues, “While I think there will always be a need for traditional energy attorneys, firms have somewhat pivoted and are now eager to see energy experience in the projects and renewables sector.” And what about all the firms that are steadfast in their tried-and-true oil and gas practices? As it turns out, Rizzo chuckles, “I don’t think that the more traditional part of the industry will ever completely disappear – it’s Texas! But I do think those firms will have to supplement some of their clients by bringing in renewables clients. There's only going to be so much work that the oil and gas companies will be able to provide to a practice group after a while. But I don't think we'll ever see a complete eradication of oil and gas in this market. Maybe if we were in California, but not here in Texas!”
That said, we heard from our interviewees that energy isn’t the only practice that’s seen increased activity as of late. The state is experiencing an uptick in litigation, which Boone Jaikaran sheds some light on. “Texas tends to have some rather extreme weather events from time to time and we've had our fair share of them over the past few years. Some of these weather conditions include storms, hurricanes, and even the rare winter storm. The Great Texas Freeze of February 2021 caused the state's electrical grid to lose power supply, leaving millions of people without power for over a week. The freeze also caused water pipes to burst, car accidents, and structural damage to buildings. Needless to say, there has been extensive litigation relating to the freeze that has kept many firms very busy.” Aside from that, “I also think the uptick in litigation was caused by the pandemic. Since offices and courthouses were closed, trials were cancelled or delayed and there was little pressure to settle cases. Since there was a backlog of cases in the courts, it has taken a while for everything to get back to normal." Senior director Christine Berger helpfully supplies that “certain types of litigation are always in demand despite the economy – particularly in the insurance defense world.”
Although “the litigation market continues to march on,” there are a few practices that have cooled off recently, such as transactional work, which has “still not quite returned to what we’re accustomed to seeing. We’re watching it slowly try to ramp its way back up, but it’s not where it was pre-COVID, let alone in 2021 and 2022 when we were all chained to our desks because there were so many jobs to fill,” Rizzo reflects. Tech has also slowed down, likely “because when the market’s down, a lot of the startup companies and things like that just don’t have enough money,” Boone Jaikaran illuminates. “Due to Austin’s strong tech orientation, its legal market has been notably impacted,” she notes. Over in Dallas, real estate has similarly been impacted by the market, what with people’s reservations with buying real estate due to high interest rates coupled with the fact that “there are more real estate attorneys in Dallas than there are in Houston and Austin.”
In the market for laterals?
Good news for anyone looking to lateral to the Lone Star State: “there’s demand at all the firms!” Berger reassures us. “The AmLaw 200 are picky with who they hire, and they require top credentials,” she adds. “Boutiques are always looking for the right people, but there are other firms that just need someone in the door. There’s always a pretty high demand for getting someone in, trained up, and able to work independently,” although Rizzo caveats that “trying to place litigators into the big firms is very hard.” She agrees that “they are extremely picky with experience, credentials, and clerkships,” so for those looking to move to Texas, “it’s a little bit easier to go mid-market or smaller; the partnership chances there are also better.” So, some words of wisdom: “For people who come to me saying, ‘I want to go BigLaw,’ but they want to make partner somewhere, I advise them, ‘You should really think beyond BigLaw because the partnership path in BigLaw is much more challenging. If we get you into a mid-size or boutique, you can get on that path a lot easier.’”
In terms of who is most in demand right now, mid-levels take the cake – “three to five years is your most marketable time as a lawyer,” Berger confirms. “Unfortunately, firms are not seeking the two-year junior attorneys right now,” Boone Jaikaran nods. Firms of all sizes “need someone with more experience that can immediately contribute to the group,” which works to the detriment of junior associates who are itching to switch firms. Effectively, they must play a waiting game, gathering as much experience as possible before most potential employers will look twice at their resume. Naturally, “firms don’t expect mid-level laterals to be able to handle deals independently right away,” Boone Jaikaran shares, but “the partners are currently seeking associates who require less supervision and can also mentor junior associates.”
This is a high bar to achieve for incoming laterals – a marked change from how the Texan lateral market operated during the pandemic: “People are no longer lateraling to firms without required credentials,” Berger tells us. Firms have started to bring their standards back up to pre-COVID levels, which means “you need spot-on experience,” Rizzo details. “You need great academic credentials,” of which Berger lists important specifics: “where you went to law school, your GPA, your class rank, whether you had a federal clerkship, where you went to undergrad, what your major was. Firms also care about what honors you received in law school, whether you were on law review, and any awards or scholarships you may have earned.”
“Even though it’s more challenging, we appreciate that standards are back to where they were. Now, I’m submitting people who are solid candidates who will do well and be valued.”
The list is admittedly extensive – and a little daunting. Ultimately though, while this makes it harder for recruiters to find candidates and for candidates to be placed, it is a good thing! (Yes, we know how it sounds; stay with us.) Rizzo breaks this down: “We had this brief little blip of a year or so where firms just needed bodies, so you’d get these AmLaw 10 and 20 firms that were suddenly considering candidates who likely would not have seen the inside of those firms in their careers, and these candidates weren’t just getting interviews - they were getting offers.” She goes on to confide that “those days are behind us, and I’m grateful for that. It makes our jobs a little harder, sure, but it also created a lot of instability in the lateral market when the market shifted downward.” This instability then snowballed and caused stealth layoffs, so “even though it’s more challenging, we appreciate that standards are back to where they were. Now, I’m submitting people who are solid candidates who will do well and be valued,” and recruiters are now more focused on finding “that diamond in the rough, unicorn candidate.”
What about partner movement? “The lateral partner market in Texas in very busy!” Boone Jaikaran is happy to relay, detailing that “there a number of mid-market and national firms in growth mode.” For example, Texas native “Jackson Walker has doubled in size over the past several years, and a majority of their hires have been in the partner space as they continue to grow their footprint in Texas.” There are several “international firms that have opened offices in Texas, as well, so there’s a lot of partner movement,” she shares. Berger echoes this, providing perspective on why partner movement has been booming: “Partners are very willing to talk to recruiters and see what other opportunities are out there” she notes. “Partners are strategic as well; maybe they have needs that are being unmet at their current firm or are interested in learning how another platform could offer them more opportunities, so they analyze potential lateral moves to strategically fill those gaps.” Of course, “filling these gaps is very unique and partners have their own specific reasons for considering a lateral move.
Everything’s Bigger (and Better) in Texas!
Everything? That’s right – at least according to our interviewees. “We’ve got a really good candidate pool,” Rizzo mentions when we ask about Texas’ mass appeal. With top law schools like the University of Texas Law School, University of Houston Law Center, SMU, and Baylor, “it’s easier to do OCIs when you have an office in the South.” Everywhere in Texas has its own distinctive flavor as well, so having a variety of city-dependent industries certainly helps! Obviously, “energy spans the state, but if you’re in Houston, there’s much more than if you’re in Dallas,” Rizzo sets out, “In Dallas, you’re seeing more financial services and real estate. And then Austin is tech, EC/VC, IP, and things of that nature.” This mixed bag of specialties lends itself well to a firm’s success, as Rizzo continues: “Firms that have those practice areas can focus on them more. They can have an office in one city that focuses more on one thing than another; they’re able to have different practice areas within the state because it’s just cheaper in Texas.” It’s true: with a significantly lower cost of living than its East and West coast counterparts, it’s hard not to see the appeal of establishing yourself in Texas – as both a business and an individual.
“Texas is more laidback. Here you can attain a better work-life balance, earn a New York salary, and live at a fraction of the cost of living!”
On that note: more about Texan living. Yes, everyone’s heard of the quintessential Southern charm that is seemingly baked into the spirits of Texas’ gentlepeople, but we wanted to hear it straight from the source – what sets Texas apart from any other state? “It’s the people and our Southern charm – no, it truly is!” Boone Jaikaran grins. “It’s funny because I remember speaking to an associate that had moved to Dallas from New York City. He said the difference between the two cities/offices was day and night. The way people interact with each other… it’s just so different and pleasant. He actually enjoyed working again and going into the office.” As Berger points out, “Texas is more laidback. Here you can attain a better work-life balance, earn a New York salary, and live at a fraction of the cost of living!”
On the topic of salaries, you’ll be glad to know that “nearly every international firm in Texas is offering their associates the same compensation as those in New York City – it’s very easy for the firms to keep up,” Boone Jaikaran guarantees. That said, thanks to the lower cost of living in the state and no state income tax, associates are “also aware that they don’t necessarily need to make that much money considering Texas’ lower cost of living, so they’re open to getting paid a little under market,” Berger notes. Essentially, “it’s a pay bump if associates are willing to make the move and come down,” Rizzo rationalizes. “They’re making the same amount of money but they’re spending less on living expenses, so they basically get a raise.”
Another underappreciated (non-monetary) bonus of Texas is that “we have so many different climates. As you cross through Central Texas, you’re crossing over the Hill Country, so it becomes very green and rolling. You get out West and it’s a desert, but the elevation is a lot higher because you’re getting closer to the Rocky Mountains. So, depending on where you are in the state, you get a completely different experience because we’re so geographically huge,” Rizzo tells us. We were surprised to hear that Texas does in fact get snowstorms, but weather aside, the big cities in Texas offer “such a melting pot of cultures,” Rizzo adds, “so whether you’re looking for museums or food or any sort of an immersive experience, every major city offers a cool and unique way to do that!”
"...due to Texas’ diverse economy and multitude of industries, we consistently weather the storms and continue to thrive year after year. Everything is always better in Texas."
And high-quality cuisine is a throughline for our interviewees, who all agree that, as Berger puts it, “the food is pretty good!” Rizzo elaborates that “Austin has the best tacos! Houston has more restaurants per capita than maybe any other city in the country; every cuisine you can imagine is represented in Houston, and that’s just amazing. You never have to eat at the same place twice if you don’t want to!” The sports teams were another Texan treasure that Rizzo highlighted, but when it boils down to it, we were assured that the best thing about Texas is that “everybody’s open and welcoming – people actually say hi to one another on the street!” Berger rounds this out by sharing that “everyone is very welcoming,” which means that if you’re worried about making the move to Texas because you don’t know anybody, “there are plenty of opportunities to make new friends and get involved in your community.” Suffice to say we’ve certainly been convinced to pack up and head down South, and with this, Boone Jaikaran leaves us with some parting words: “I’ve always thought of Texas being its own little energy bubble and don’t get me wrong – it’s burst before and I’m sure at some point it will burst again. But due to Texas’ diverse economy and multitude of industries, we consistently weather the storms and continue to thrive year after year. Everything is always better in Texas. So, move to Texas!”
