Disloyal lawyers: has the partner track lost its lustre?

Early in their careers, newly-qualified solicitors are faced with a crossroads. To find a good job with a good work-life balance and acceptable pay, or to find an exceptionally high-paying job at a top firm, social-life be damned.

It's been this way for decades, and yet, the modern generation of associates have countered this conundrum with the assertion – why choose?

A January 2024 LexisNexis survey found work-life balance is the most important factor for legal associates when considering a change of firm. Nearing two-thirds (71%) of associates said they would place work-life balance in their top three most important priorities when looking for a new role. A higher salary wasn't far behind, at 69%. Career development, on the other hand, was only considered important by 37% of associates when considering a new role.

One associate with nearing a decade of experience in education law says having a work-life balance is more important to him than earning a high salary.

"The model of earning as much as you can usually comes with gaining weight, making no progress outside of work, and becoming depressed and stressed. Then you need to spend all the extra money you have made on remedies to these effects. It is somewhat nonsensical."

However, when we asked associates what would incentivise them to stay at their current firm, 70% said a higher salary or compensation package, yet only 36% said a work-life balance.

One solicitor, with two decades of experience working in human rights and civil litigation, says junior lawyers simply follow the dollar.

"In my experience, in the early stages of their careers, very few favour experience and knowledge over remuneration," he says.

Work-life balance and salary are clearly top priorities to today's generation of associates, but what about the partner track?

Associates find partners' workaholic lifestyles off-putting

Poor work-life balance is putting the new generation of associates off of partnership.

The survey revealed only a quarter (25%) of associates at law firms want to make partner at their current firm within the next five years. This dropped down to 22% for lawyers at large law firms and 23% at medium-sized firms.

Only 25% of associates want to make partner at their firm in the next 5 years.

Deborah Finkler, Managing Partner at Slaughter and May, says this doesn't surprise her.

"Becoming a partner at a law firm requires a huge amount of work and commitment, and always has. This generation of associates are just more realistic about the likelihood of becoming a partner at their firm, and do not feel they need to pretend that staying and becoming a partner is their only option."

Practice notes: hours of work and working time

Moira Slape, the Chief People Officer at Travers Smith, believes the current generation of associates are less interested in becoming partner.

"The attractiveness of becoming a partner has lessened. The mindset has shifted in the last five years during and after the pandemic."

Generational shifts have driven changes in what younger professionals are seeking from their employer, she explained.

"Their 'psychological contract' with their employer can differ when it comes to the investment of time they are prepared to commit to building their career."

Corporate social responsibility—CSR—regulatory requirements

Their list of demands are lengthy, says Slape. Alongside compensation and work-life balance, this generation also want honesty around their firm's commitment to diversity and inclusion (D&I), a business strategy which is clear and compelling, excellent training, and for their voices to be heard.

Elizabeth Rimmer, the CEO of legal mental health charity, LawCare, holds a similar opinion. "Junior solicitors are no longer aspiring to be partners," she says. "They will likely take one look at the lifestyle of current partners and be put off."

One senior associate we spoke with who specialises in corporate, and has worked at several internationally-recognised firms, says many of her peers are put off by the poor work-life balance of partners.

"Being partner comes with many benefits and privileges, but also seems to come with many drawbacks and burdens," she said.

"It can also put real limitations on a person's ability to be fully engaged and present in family life, if – as it goes – "clients come first"."

Roughly half (49%) of the law firm leaders believe the current generation of associates are less interested in becoming partner than previous generations. This rises to 63% for leaders of large law firms. Less than a fifth of all law firm leaders (19%) don't believe the desire to make partner is in decline, while a third (31%) admitted they simply didn't know.

63% of leaders at large law firms believe associates are less interested in making partner.

James Knight, CEO of fee-sharing law firm Keystone Law says most junior lawyers start their careers with ambitious intent, but become disillusioned when they see what life in the top jobs really look like.

"This demonstrates a systemic crisis in the profession that goes beyond financial considerations," he believes.

Legal associates aren't going anywhere

More than half of associates plan to stay at their firm, and three-quarters plan to stay in private practice.

With work-life balance in the spotlight, you would be forgiven for thinking many associates are eyeing up in-house legal counsel roles, given its perception for having greater flexibility. Yet only 4% of associates said they planned to move in-house in the next five years. The majority of associates (75%) are content staying in private practice, and more than half (58%) planned to stay at their current firm. Roughly a quarter (26%) of all associates said they were hoping to be promoted to a position below partner at their current firm, while 7% said they're happy staying in the same position. Just over one in ten (13%) said they didn't know.

75% of law firm associates plan to stay in private practice for at least the next five years.

With three-quarters of associates wanting to stay in private practice, yet only a quarter aspiring to partnership in the near future, are half of all associates happy merely coasting in their careers?

Read our recruitment best practice checklist.

Meeting targets without aspiring to make partner or receive a promotion isn't necessarily a bad thing, says an employment law specialist with more than 30 years' experience, including a decade as a partner at a national firm.

"If someone is meeting targets but not setting the world alight and not asking for a promotion, where is the problem?" she argues.

"However, if they are meeting but not exceeding expectations and hoping to make partner, you need to be clear that it's not happening unless they up their game."

Most long-term associates end up pushing for partnership when they realise it's the only way to increase their salaries, she says.

The negative stigma attached to admitting you don't want to become partner has changed in the last decade, says John Joyce, the Managing Partner at Addleshaw Goddard.

"A decade ago, if you admitted you didn't want to become a partner, you would be creating an image of yourself as lacking in ambition."

Our survey supports this change in attitudes. Only a quarter (26%) of legal leaders who believe the demand for partnership is in decline said it was because the current generation of associates lack ambition. Most accredited it to a desire for a better work-life balance (71%), especially those from medium- (79%) and large-sized firms (80%).

Joyce says he's noticed a growing number of career opportunities available to associates.

"Associates are now able to engage in a much more open dialogue about their futures without there being any negative consequences," he says.

Many of the associates we spoke with shared this opinion. One senior family law solicitor says there's no longer just one path to the top these days.

"Their challenges or progression might come in different ways, such as a tricky case," she says.

Creating bespoke career paths that sit outside the traditional confines of the partner track – or allowing high-performers to curate their own career paths – is becoming more common inside some leading firms.

But by doing so, firms also run the risk of having a bulge of very expensive senior associates who don't want to become partner, says Mark Smith, Director of Strategic Markets at LexisNexis.

"If there are fewer people coming through, that's not such a bad thing. You can keep the profits per equity partner tight," says Smith.

"But the reality is, if a firm is going to grow, the whole pyramid needs to grow along with it."

Practice notes on succession planning and exit strategies

These senior associates are not only expensive, says Smith, they can also create a barrier for the people coming up underneath them.

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The partner track is still shrouded in secrecy

Some firms push for an open dialogue, while others keep conversations behind closed doors.

The 25% of associates aspiring to make partner at their current firm within the next five years will have wildly polarising experiences. While some will have open and honest conversations about their future aspirations, others will be met with secrecy.

"In a lot of cases the requirement for promotion is not wholly clear. There is still a great deal of favouritism," says the former partner that specialises in employment law.

The topic of partnership is still very much taboo, says the corporate law senior associate.

"I don't think it's discussed that much," she said. "There is an opaqueness around it depending on your team. For some, it seems perhaps more obvious who might progress to partner, whereas in other teams, it seems not particularly transparent."

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Partnership is not openly discussed until you reach a certain level, noted a senior associate at a small law firm.

"At smaller firms, it depends on the mentality of the partners in charge of the firm. I have found smaller firms are afraid you will dilute their power or take away their business if you move."

The number of associates being promoted to partner across the UK's top 100 firms is relatively stable, according to PwC's latest Annual Law Firms 2023 survey. Yet law firms may struggle in the future if pipelines dry up – especially with solicitor salaries skyrocketing and margins shrinking.

See practice notes on time management efficiency at law firms

The financial risks and responsibilities of partnership

Some believe today's unpredictable economic environment is causing associates serious concern.

The financial risks that come with being a partner could also be contributing to this supposed decline in interest, with senior law firm leaders listing it as the second most likely reason.

PwC's survey highlighted some of the financial risks firms are facing at present, with significant rises in costs and net profit margin increases. The average profits per equity partner (PEP) declined by 7% for the top 11-25 firms by revenue (to £807k) and by 10.8% for top 26-50 firms (to £580k). PEP increased by 3.2% for the top 51-100 firms (to £479k), although the report concluded this to be due to a slight reduction in full equity partner headcount. The top 10 firms increased PEP by 0.9% (to £1,417k).

"For some, the legal marketplace has changed. The financial pressures are significant and a professional team needs professional management," said one associate.

The business development component required to make partner can also be challenging for some, particularly in today's economic market.

One London-based four year PQE solicitor who specialises in M&A, private equity, and venture capital transactions says he understands why some associates might feel more comfortable sticking to the more technical tasks.

"The ability to maintain and grow a network of contacts is hardly taught, yet it is complex, and requires a strong entrepreneurial drive."

According to the PwC report mentioned above, the average fee earner income at the top 10 performing UK firms currently sits at a whopping £1,281m – and £446m for the top 11-25 firms.

Read practice notes on financial management for law firms

However, we could easily see the current generation of associates change their priorities as they approach the point in their careers where partnership is a viable option, says Smith.

"With life expectancies continuing to rise, people are having to prepare for life well beyond the age of retirement."

Promoting the prospect of partnership

Partners need to take work-life balance seriously if they want to drive their firm's growth plans forward.

Promoting the prospect of partnership is not something firms have had to consider in the past. But firms with ambitious growth plans wanting to secure a strong pipeline of partners in the years ahead should be conscious of the current generation's need for work-life balance.

Firms need to do better at encouraging partners and senior leaders to lead by example, says Smith. That might mean setting new standards of work-life balance expectations across the leadership team that trickles down.

We expect people to have a life outside of their jobs, says Emden, and that message needs to come from the partners down.

"We don't have partners expecting their associates to work 16 hours a day. That message comes from the partners directly, and they're expected to lead by example."

Shane Gleghorn, the Managing Partner at Taylor Wessing, holds a similar opinion. Associates will naturally look at everything from the lifestyles, workloads and attitudes of the partners at a firm to inform their decision, he says.

"Our partners do a great job of demonstrating why it is a worthy goal to aspire to be a partner."

The pandemic may have thrown work-life balance into the spotlight, but today's generation of legal associates are refusing to let it go.

The majority of associates plan to remain in private practice, yet the always-on, always in the office, all or nothing attitudes that have dominated the legal profession for decades are no longer appealing.

If partnership is off the table, law firms may need to get creative when crafting new career paths that are rewarding for employees, suitable for clients, and good for business – and balancing these often-conflicting demands won't be easy.

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It's no secret that attracting and retaining lawyers is an ongoing challenge for the legal sector. The widely-publicised bidding wars between top firms over junior talent are evidence of that.

Unsurprisingly, when we asked senior leadership for their top three challenges for the next 12 months, talent attraction and retention was listed as the third biggest challenge, at 42%. This rose to the top challenge when looking at responses from large law firms alone, at 69%.

The top challenge for large law firms in the next year is attracting and retaining talent.

Firms cannot expect junior lawyers to stay put for the entirety of their careers anymore, says Rimmer from LawCare.

"The current generation of associates will likely only stay in the same role for three to five years, with three years being the more common outcome."

The Lawyer's recent analysis of indicative hiring data from Atlas by Codex Edge confirms this. It revealed that junior lawyers with only a few years of experience are significantly more likely to change jobs – the peak movement for all lawyers occurs at the 3PQE stage. The analysis also revealed women are changing jobs more frequently than men, particularly when starting out in their careers. Over the course of two years, 6,400 women changed roles at the 0- 6PQE stage, compared with 3,828 men (a 67% difference).

Read up on unconscious bias at law firms

"We know not everyone will be with us for their whole career, and that’s fine," says Finkler from Slaughter and May.

"Things have changed. We have moved on from the idea that doing one job, at the same firm, for your whole career is the only option."

"Being a lawyer in a high-performance private practice is very demanding and not for everyone. We aim to provide people with the best training possible, to form a foundation for their future career, whether that be with us or elsewhere."

Law firm leaders believe associates are disloyal

The majority of leaders believe the current generation of lawyers are less loyal than previous generations.

When we asked law firm leaders if they believe the current generation of legal associates are less loyal to their firms than previous generations, 72% agreed. This jumped up to 81% when looking at responses from leaders at medium and large law firms.

81% of leaders from large and medium-sized firms believe the current generation of lawyers are less loyal.

One associate says his peers are always talking about taking the next professional step.

"People are so desperate to upgrade, they will very much consider leaving if they can’t. And they do."

"The law offers little by way of self-esteem nowadays," he believes. "As a profession, it is becoming squeezed, cheapened and de-skilled. So one of the sources of self-esteem and autonomy is up-ranking."

Most firms experienced several waves of staff turnover during and directly after the pandemic. The Great Resignation saw many lawyers readjust their career priorities, especially regarding work-life balance.

Precedent: Solicitor, legal executive or fee earner role profile

Emden from Howard Kennedy says his firm expects associates will stay much longer than three-to-five years.

“A lot of our associates were trainees in the firm, so they know us and we know them. It would be very disappointing if they then left when they were three to five years qualified. We want them to stay."

When we recruit, we don't recruit on a short-term basis, says Emden.

"If they left, that would be very disappointing and we would definitely be encouraging them to stay for longer. They're the future of the firm.”

Yet law firm leaders' fears of disloyalty might be misguided. The survey found more than half of associates (56%) plan to still be at their current firm in five years' time. In addition, only 12% said they plan to leave private practice in favour of alternative career paths such as in-house, ASLP or academic roles.

Does the legal industry really have a retention problem?

Are associates any less loyal than their non-legal peers?

While many predicted a lasting period of stability for employee retention, staff turnover inside the top 100 law firms is still high, PwC's Annual Law Firm's 2023 survey revealed. One key contributor to this trend, the consulting firm's report concluded, could be the ongoing push from US law firms in the UK legal market and the associated ripple effect.

The top UK firms pay roughly 35% to 40% less than their US peers, a London-based legal recruiter for Major, Lindsey & Africa recently told Bloomberg Law. As it stands, none of the Magic Circle firms are matching the elite US law firms when it comes to associate salaries. Yet, as the top firms continue their expansion into the US market, this could soon change. Linklaters' Managing Partner, Paul Lewis, did just announce that “lockstep is not an issue anymore” when it comes to compensation for lateral hires.

The legal sector is not alone when it comes to poor employee retention rates. The Millennial generation of workers are notoriously disloyal to their employers. A Gallup report on the Millennial generation reveals 21% of changed jobs within the past year, more than three times the number of non-Millennials. In addition, only half of them said they plan to be working at their company one year from now, suggesting the other half won't be.

Loyalty in all sectors is less than previous generations and the legal profession is no exception, says Knight from Keystone Law.

"This is a function of a changing society," he says, pointing out that the growth of alternative law firms like Keystone has come about as a result of that shift, but is not the cause of it.

Common behavioural interview questions—law firms

Legal leaders attributed declining loyalty to employers being more accepting or open to legal professionals frequently changing jobs (61%). Many leaders also said competitive compensation packages and a desire for a better work-life balance have contributed to declining loyalty, at 55% and 54% respectively.

61% of law firm leaders believe declining loyalty is due to increased job mobility.

Leaders from large law firms were more likely to believe loyalty figures have dropped because associates are chasing higher compensation packages, at 74%.

Lifelong loyalty is no longer a must-have

The stigma around frequently moving firms has lessened in recent years.

An apprentice solicitor from Wales says job-jumping is very common in her generation.

"There is less stigma around changing firms in general, especially if you can validate your reasoning. For example, if an opportunity arises on the exact same terms as your current role, you will still have a positive work-life balance, but the pay is higher, why wouldn’t you go for it?"

Associates prioritise work-life balance and salary when moving firms, at 71% and 69% respectively. Yet, when asked what would encourage them to stay put at their current firm, 70% said more money while only 36% said a better work-life balance.

Practice Note: How to find and keep the best people

"One thing that we find keeps our lawyers engaged," says Finkler, "is our multi-specialist approach. It keeps their options open and means that work is interesting and varied."

Finkler also says associates at Slaughter and May are given plenty of direct contact with clients and assigned their fair share of work in interesting growth areas, such as Technology and ESG, increasing their engagement.

Our survey suggested compensation packages have stayed roughly the same in the last 12 months. Only 11% of senior leaders said their firm had increased salaries over the rate of inflation, while 21% said they've increased to match inflation. Yet medium- and large-law firms were significantly more likely to say they've raised salaries to be more competitive, at 38% and 31% respectively.

Some associates believe firms are partly to blame for declining loyalty.

"Firms might be looking to cut costs, including staff benefits, and so they have to tread a careful line between costs and keeping staff loyal," noted one senior at a mid-sized firm.

However, half (49%) of law firm leaders said their firm hadn't increased annual billable targets in the last 12 months, despite the economic environment giving them plenty of incentive too. This suggests many are prioritising, or at least aware of the knock-on effect this would have on, work-life balance.

One flexibility initiative of interest comes from Slaughter and May, which recently made permanent a scheme that allows associates to reduce their working hours in exchange for reduced pay. As part of the scheme, dubbed the “switch on/switch off” model, associates have the opportunity to reduce their working hours to 0.9 or 0.8 FTE. While associates still work five days a week, they are able to take accrued non-working time off in two pre-agreed blocks over a 12-month period to allow for more flexibility.

Read practice notes on how to manage change

To ensure loyalty, Slape from Travers Smith says firms should carry out regular engagement or pulse surveys to monitor engagement levels. She also highlighted the importance of communicating in a transparent and consistent way, managing work allocation fairly across associate teams, and putting in place timely learning and development programmes.

Gleghorn from Taylor Wessing says his firm drives engagement by encouraging collaboration and learning together to ensure employees have the best experience of their careers, working with interesting and innovative clients.

Gen Z associates and the rise of generative AI

What will AI mean for the current and future generation of associates?

Alongside the shifting demands of associates, firms will also need to factor in how generative AI tools will change the role of the associate, and how it can be used to increase efficiency across the board.

Generative AI—is its output protectable by intellectual property rights?

The impact AI and automation technology will have on the legal sector is a hotly-debating topic. An International Monetary Fund (IMF) study estimated approximately 40% of global jobs are at risk to AI – and many of these jobs are considered high-skilled. Another study by Massachusutts Institute of Technology (MIT) estimated that one-quarter (23%) of potential tasks and jobs will be displaced by AI in the near-term, while others will take place over a longer stretch of time due to the high costs of AI.

Properly trained and grounded generative AI can do some legal tasks faster and at higher quality than a human lawyer. The impact this will have on legal services is revolutionary.

How to manage the risks of artificial intelligence in your business

"The whole economic underpinnings of law firms and how clients are charged are going to have to change," says John Quinn, the Co-founder and Chairman of the US litigation powerhouse, Quinn Emanuel Urquhart & Sullivan.

LexisNexis' Smith says there are deeper, more structural challenges that organisations need to overcome before they can get full volume from AI solutions.

"Firms need to consider everything from their pricing and resourcing models, to the investment costs for acquiring, developing or training generative AI solutions, to employee concerns around job security and satisfaction."

Continuously offering associates enough money to persuade them to stay might be a feasible option for some, but for others, it will be either unwise or impossible. Another approach is a simple acknowledgment of success.

One associate said: "A good law firm has a quid pro quo ethos where if a lower rank steps up and does a good job or goes the extra mile, it is noted, garners respect, and is responded to substantially in a way that the giver of the response would plainly like to receive were the roles reversed."

Again, enabling high performers to craft their own career paths that sit outside the traditional confines of the partner track is also worthwhile.

This may not be enough to persuade associates to stay put for long, but it could help secure their engagement while they're there.

The threat of partnership pipelines drying up may become problematic for some firms, but the more imminent threat for most seems to be retaining good lawyers, regardless of their title or rank.

The legal talent market is becoming increasingly competitive, and bidding wars between firms are only adding fuel to the fire. While revenues have risen in recent years, so too have expenses, salaries, and workplace expectations. Law firm leaders may need to throw their talent attraction and retention strategies in the spotlight, and align them closely with the firm's business objectives, because today's legal market is anything but reliable.

Final thoughts: your future leaders

Each generation believes their viewpoint is unique, although the overlapping opinions that occur in each are often uncanny. Younger generations feel misunderstood, older generations feel dismissed, and so on. In 1924 this would have been the case, as it will in 2124.

Today's generation of associates, just like their predecessors, will eventually adapt, evolve and, in some cases, make compromises, as they jump from one life stage to the next.

That being said, there will be things that they won't be willing to compromise on. The workplace – it seems – is one of those things.

Attractive salaries are clearly still important, as is career progression, and engaging work. But it isn't the be all and end all. Younger generations of lawyers will need time for life outside of work.

It's interesting that, at a time of arguably the biggest technological transformations in history, one of the biggest threats to firms is their people.

As the legal profession trades in human capital, firms will also need to adapt, evolve and, in some cases, make compromises to attract the best talent. In return, these employees will find ways to bring in new revenue streams, meet the changing needs of clients, and drive your firm's digital transformation forward.

Stuart Greenhill
Senior Director of Segment Strategy
LexisNexis UK