From Attrition to Retention: A New Playbook for Law Firms

Over the past few years, associate attorneys have been leaving their jobs at unprecedented rates, a trend that could threaten the foundation of traditional law firm models. The NALP Foundation reports that 82% of associates who left their jobs in 2023 did so within five years of hiring. Associates are leaving more frequently and earlier than before—as much as one full year before historically expected. These early exits are not simply a staffing concern; if law firms cannot find solutions to curb the associate exodus, they will soon find themselves in crisis.

The problem is twofold, not stopping at simple attrition from disillusioned young lawyers. Law school enrollment has decreased year-over-year since 2022. What are firms to do when young associates make more frequent job changes and the pool of potential candidates has also decreased?

Previously, firms had access to a steady pipeline of young professionals eager to climb the ranks of prestige. Now, these integral roles have become a revolving door of rapid turnover.

Why are associates leaving so soon, and what can law firms do to push back the tide? Understanding the first question allows for firms to address the second. By exploring the root causes, firms can mitigate the challenges presented by attrition and even drive innovation and growth moving forward—solutions that will set new industry standards for associate satisfaction and retention.

The Why Behind the Mass Exodus

Lingering effects of the COVID-19 pandemic have reshaped the workplace across industries globally, and the legal sector is no exception. The transition to remote work brought many benefits for lawyers and legal professionals at all levels, through increased flexibility and improved work-life balance. However, entry-level associates faced a particularly difficult set of challenges.

With the sudden shift to remote work, mentorship for junior associates all but disappeared in some firms. Hallway conversations were gone, and partners often stopped working from the office even after restrictions eased. Left without guidance, an entire wave of associates were stranded with inefficient workflows and overwhelming workloads. Partners increasingly relied on more experienced senior associates to get work done, leaving juniors to fend for themselves, which led to burnout and high turnover.

This newfound dynamic has also affected the pipeline to equity partnership. Rainmakers and senior partners aren't transferring the knowledge and skills necessary for client development to lower-level associates or non-equity partners. As a result, there has been an increase in non-equity partners who merit the title, raises, and bonuses but lack the ability to transition into equity roles due to limited client recruitment experience.

With long-term opportunities feeling distant and unreachable, associates are largely discovering that the nature of the work they’re tasked with is undesirable. In the evolving landscape, associates have higher expectations about the types of work they are willing to do. Low-value administrative tasks, such as creating signature pages and closing binders, are no longer seen as acceptable. Many associates feel this administrative work isn’t a suitable use of their skills and education, prompting them to move outward—either to firms that offer higher-value opportunities, in-house roles, or even explore roles in legal tech.

This shift in expectations has posed a significant challenge for law firms in the last several years, especially as law school enrollments have seen a small but consistent decline. With a potentially smaller pool of hireable talent, attrition becomes a more significant threat. Firms may still have an opportunity to curb this trend with upcoming associates, however. As of late January, the 2025 application season has seen a significant increase in applications—up 28.4% year-over-year. 

Even as law school applications rebound, existing associates continue searching for fulfillment elsewhere. A 2024 survey by Law360 reported that 27% of associates planned to look for a new job within the next year, and 22% were unhappy with the opportunities for advancement at their firms. If law firms are going to improve associate retention, they must do so quickly.

How Technology Helps Bridge the Gap

Some of the most pressing associate attrition issues plaguing law firms can be overcome through embracing innovation, which fosters a more engaging and sustainable environment for young talent.

Advancements in technology, whether AI-based platforms or through other SaaS solutions, can produce near-immediate positive change for law firms. By automating the mundane, repetitive tasks that often fall to associates, they are freed to explore more strategic experiences that better align with their aspirations and skills.

Software solutions can minimize the manual labor involved in document review, contract analysis, legal research, and even transaction management. 

For instance, one law firm that prioritized innovation and technology adoption was an early user of software that centralizes closing checklists, creates and tracks signature pages and packets, provides live status updates, and automates closing set creation. As a result of their forward-thinking strategies—and empowered by technology—the firm was able to prevent attrition from becoming a problem and boasts an employee turnover rate of almost 0%, with the exception of retirement. Additionally, their firm’s technology utilization rate is near 100%, even for the most senior partners.

With rote administrative work removed from their task load, associates have the opportunity to engage in more mentorship opportunities with senior lawyers. Technology can facilitate better collaboration, especially when it resolves gaps in communication that are often found in outdated workflows. With access to real-time feedback, status tracking, and streamlined project management, junior lawyers are better able to stay connected with their mentors, even in remote or hybrid work settings.

Conclusion

Rising attrition is a problem law firms cannot afford to ignore. However, it is also an opportunity—a chance to reimagine the traditional law firm model and create a more engaging, equitable, and sustainable workplace. Through addressing the root causes of attrition and leveraging technology to enhance the associate experience, firms cannot only retain their top talent but also position themselves as leaders in a rapidly evolving industry.

The key lies in embracing change. But in order to stay relevant and, further, in order to keep up with the needs of clients, evolution is required. Work-life balance, firm culture, and day-to-day tasks matter like never before to junior associates; if firms wish to continue to grow with robust succession plans, they must listen to the data.

Technology offers a roadmap for overcoming this staffing crisis. Law firms that take proactive steps today will not only navigate the current challenges but will also build a stronger foundation for the future. Ultimately, the associate exodus can be a catalyst for innovation and growth.

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DealCloser, a majority-owned portfolio company of Bryce Catalyst, is a transaction management solution designed to maximize your legal team's productivity and enable faster deal closings. Our all-in-one platform accelerates deal velocity by eliminating inefficiencies and providing the automation and speed needed for seamless transactions. With DealCloser, legal professionals can streamline every stage of the closing process—from creating and managing checklists to simplifying contract negotiations, automating signature page workflows, and generating complete closing sets in seconds.

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