For law firms, there’s good news: attrition rates are down after peaking in 2021. However, they still haven’t leveled out to pre-pandemic levels.

Why do lawyers leave firms, and how can you keep them from departing? The loss of employees through retirement or poor performance is part of a healthy company’s useful, expected attrition, but the voluntary exits of associates is an enormous drain on law firms that can harm performance, client relationships, and the bottom line. 

Discover more about law firm attrition and steps you can take to improve retention at your practice.

Current State of Law Firm Attrition

Attrition refers to employees lost over a period of time, typically calculated at an annual rate, for any and all reasons. While high law firm attrition rates are concerning and costly, the goal isn’t to zero them out. In general, a 10 – 15% attrition rate is considered optimal, allowing for the culling of underperformers while holding on to top talent.¹

Here are some averages of annual attrition within the legal profession: 

• Pre-pandemic associate attrition at Am Law 100 firms: 16%²
• 2021 associate attrition at Am Law 100 firms: 27% 
• 2022 associate attrition overall: 20%³
• 2023 associate attrition overall: 18%⁴

Causes of High Attrition in Law Firms

The high attrition rate for lawyers doesn’t only come down to supply and demand, although that is a factor. It’s also centered around cultural and generational values that have shifted faster than the workaday life of firm associates:

• Workload and burnout – Long hours, urgent demands, and high stakes make for intense stress levels that, for many, money and prestige don’t compensate for.

• Work-life balance – There are many careers with inflexible workdays or workloads, but few compare to the legal industry’s reputation for infringing on a fulfilling family life or other non-work pursuits. Associates at all stages today are less prone to prioritize work above all else indefinitely.

• Law firm culture and inclusivity – The lack of a supportive, inclusive environment can lower a firm’s success in acquiring and retaining top talent.

• Career progression – Limited advancement opportunities and lack of career development support can both increase turnover.

• Geography – Location entered the mix of top rationales to leave a position starting in 2022.³ Pandemic-related migrations and the ongoing appeal of hybrid and remote work arrangements resulted in greater awareness of the benefits of geographic mobility. More professionals want to live closer to family or at ideal destinations, whether that means sun and surf or a lower tax rate and cost of living.

• Compensation and benefits – The current lawyer shortage has increased competition to secure and retain associates. Many Am Law 100 firms broke the $200,000 salary ceiling starting in 2021, along with increasing bonus incentives to stay.²

The Impact of Attrition on Law Firms

The temporary operational savings of a departing staff member’s unpaid salary are enormously outweighed by the many costs of attrition—including those that aren’t simple to quantify in spite of their impact on the firm profits. 

On average, firms may be out $200,000 – $500,000 per departure based on the costs of recruiting, hiring, and onboarding a new associate—plus ongoing training and development investments.²

In addition to this direct financial impact, consider damage to: 

• Client relationships 
• Firm reputation 
• Current legal matters
• Firm culture and moral
• Productivity and knowledge 
• Senior associates’ time covering lower-level work

Solutions to Address Law Firm Attrition

Reducing your attrition rate and keeping it down requires ongoing attention. Look into implementing or improving these efforts: 

• Work-life balance initiatives – Policies may include hybrid or remote work options, flexible work schedules, and more multi-use PTO.

• Career development opportunities – Formalize and invest in lawyer mentorship programs, skills development, and learning tracks, including leadership training.

• Enhance firm culture – Provide wellness programs, support networks, and DEI (diversity, equity, and inclusion) efforts that support your firm goals and values.

• Feedback mechanisms – Utilize ongoing and multi-directional feedback loops at regular intervals, including periodic employee surveys, cross-directional reviews, and exit interviews.

• Early warning system – Consider employing data science to establish cohorts, set thresholds on critical parameters (e.g., hours and utilization, number of client engagements, team characteristics or dynamics, communication responsiveness, compensation), and identify those at high risk of leaving—then intercede before departures.²

Increase Legal Talent and Lower Attrition

Hiring the right legal talent isn’t just about filling your immediate needs with a matching skill set. Avoiding high law firm attrition starts with understanding your long-term goals, your firm culture, and how to secure attorneys who will thrive and grow into lasting success stories under your roof. 

The experienced, trusted legal recruitment experts at E.P. Dine help you identify and attract talent for a bright future. In a fast-changing industry, we leverage decades of experience and our expansive recruiting network to find the right fit for your firm hassle-free.

Find out more about how our legal recruiting services can help you today.

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Sources: 

1. Keka HR. Attrition Rate. https://www.keka.com/glossary/attrition-rate‍
2. Thomson Reuters. Forum: The Attrition Antidote — Anticipating (and preempting) attrition through people intelligence. https://www.thomsonreuters.com/en-us/posts/legal/forum-spring-2022-attrition-antidote/‍
3. The NALP Foundation for Law Career Research and Education. Update on Associate Attrition (2022). https://www.nalpfoundation.org/news/the-nalp-foundation-releases-latest-update-on-associate-attrition-(cy-22)‍
4. The NALP Foundation for Law Career Research and Education. Update on Associate Attrition (2023). https://www.nalpfoundation.org/news/the-nalp-foundation-releases-latest-update-on-associate-attrition-and-hiring-(cy-23)