June 18, 2008
Associate Attrition Skyrockets By Year 5
The Association For Legal Career Professionals recently released an Update On Associate Attrition covering the 2007 calendar year. The numbers are striking:
- Overall percentage of associate attrition was 18% for 2007;
- 24% of these associates had been on the job for two years or less;
- 74% of 2007 departing associates left the firm within 5 or fewer years of their arrival.
The most cited reason for entry-level associate attrition was "pursuit of specific practice interests".
The reason for entry-level associate attrition leads me to believe that the survey is large-firm heavy. Large firms provide entry-level attorneys with high salaries and intense work schedules. Within 3 to 5 years, prudent associates should have their law school loans paid off and can now seek to practice in their own desirable area of law. In fact, the median size of the firms in this survey was 220 attorneys. Only a fifth of respondents were firms with 100 or less attorneys.
Looking at just the 100 and less category, the percentage of associate attrition was at 17%, 15% had left the firm within 2 years of being hired and 69% left the firm within 5 years of hiring year. It is too bad the survey did not track the reasons for attrition based on firm size, because I suspect that the main reason for attrition for smaller firms wasn't to pursue specific practice interests, but may be closer to the main reason cited by departing laterals: "unmet work quality standards".
There is little doubt that associate attrition is prevalent in law firms of all sizes. It is possible that the high attrition rates are reflective of the common culture. Where once a ball player would stay with the same team for their entire career, free agency now reins. Where someone would work at the same company for the greater portion of their life, now employee loyalty is considered a thing of the past. Neither sports nor businesses in general have made employee attrition a pressing issue to be resolved. When it comes to business realities (i.e., pensions) some businesses specifically don't want employees to retire with them. Why should it be a concern to law firms?
Whether or not associate attrition is important to your firm may depend on the area of law practiced. For example, a defense litigation firm that is well organized and has developed processes that manage their recurring tasks may not be too bothered by attrition, particularly if they have a mechanism for quickly training new associates. On the other hand, an estate practice that relies on many years of expertise can't afford high associate attrition.
Firms would do well to track associate attrition and determine the reasons for their departures. Although it may be in the interest of some firms to encourage attrition, in the long run firm sustenance is reliant upon the retention of quality talent.
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"Associate Attrition Skyrockets by Year 5"…
Posted by Brian J. Ritchey: The Association for Legal Career Professionals recently released an Update On Associate Attrition covering the…