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The NALP Foundation for Law Career Research and Education’s annual Update on Associate Attrition report released on April 18 shows that while hiring and attrition of law firm associates have decreased from the historic high levels reported in 2021, they remained above levels from previous years in 2022.
The data from 128 firms in the United States and Canada revealed that the overall associate attrition rate was 20% in 2022, compared to 26% in 2021. However, the foundation noted that 26% of associates of color continued to leave their firms at higher rates than their peers last year. This has become a significant concern for the profession, given the persistent differences faced by associates of color.
“The very high levels of both associate hiring and attrition, particularly in the first half of 2022, show significantly elevated and ongoing associate mobility, but with increasing dispersion based on location and practice area … and troublingly persistent differences for associates of color, which should be a pressing concern for the profession,” said Fiona Trevelyan Hornblower, president, and CEO of the NALP Foundation.
In addition, geographic relocation was cited for the first time as one of the primary reasons for associate departures, and more than twice as many litigation associates than business and corporate associates left their firms in 2022. The report also revealed that 72% of associates who left their firms departed within their first five years. Of those who left, 41% took another associate role, and 23% took a corporate or in-house position. Pursuing practice interests, changes to a different type of job, and unfavorable work quality standards were also cited as reasons for associates leaving their firms.
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On the hiring side, participating firms hired 6,786 associates in 2022, compared to 7,278 in 2021. While these numbers show a slight decrease, they are still higher than the 4,956 associate hires reported in 2020. Lateral hires slightly outpaced entry-level hires, and hiring by gender was nearly even in 2022.
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While the report shows a slight decrease in associate attrition rates compared to 2021, the ongoing elevated levels of associate mobility should concern law firms. The trend of associates leaving their firms within the first five years of employment and the persistent differences for associates of color are issues that law firms should address to retain and promote diversity in their workforce.
The report also reveals that the reasons for associate departures are changing, with geographic relocation cited for the first time as one of the primary reasons for leaving. Law firms may need to consider offering flexible work arrangements or remote work options to retain their talent.
Finally, the report shows that lateral hires slightly outpaced entry-level hires, indicating that firms are increasingly relying on experienced lawyers rather than investing in the training and development of new associates. This trend could have implications for the legal industry’s future, as firms may need to find new ways to attract and retain talent and invest in the development of their associates.
