What is the most expensive and surprising problem facing law firms today? It is not malpractice, client retention or salaries—it is in fact associate attrition.
According to a report from Overflow Legal Network, most law firms see a year-over-year annual attrition rate of 17 percent, including all levels and tenure at the firm. Even more pronounced, almost 46 percent of associates leave their firm within the first three years, and a staggering 81 percent leave within the first five years. This directly impacts the overall profitability of the firm. At a 400-person law firm, associate attrition can result in losses of over $25 million annually, not including the knowledge and client relationships that leave with each associate.
