Associate exodus, partner churn - new report highlights law firm talent crunch

Law firms are losing talent at every level, with associates quitting the profession in growing numbers and partners switching firms at record rates, according to new research.

The survey of more than 800 senior law firm leaders across the UK and North America by legal tech company BigHand found that the number of associates quitting the profession has almost doubled in the past year - from 9% in 2024 to 17% in 2025. Replacing a third-year associate now costs firms an estimated $1 million in lost revenue, recruitment and training expenses, says BigHand.

Overall, attrition across all lawyer levels has climbed to an average of 27%, with firms citing a number of knock-on effects, including: disruption to client service (44%), heavier workloads for remaining staff (42%) and the loss of institutional knowledge (37%). Hybrid working demands, work-life balance pressures and concerns around pay and professional development were among the key drivers.

Partners on the move

Partners are part of the trend, too. BigHand found partner churn up two percentage points to 27%, echoing recent Edwards Gibson data which showed City partner moves in the first half of 2025 were up 30% year-on-year - and 25% higher than the five-year rolling average.

Partner exits are especially costly for firms: they risk losing books of business from clients and, in strategic practice areas, are left facing the significant time and expense involved in recruiting suitable replacements.

Rebalancing act

The findings come as firms look to reshape the way they are structured. One-third of firms told BigHand they plan to shrink equity partner ranks, with 40% intending to expand senior associate numbers. Many are also turning to non-equity partner ranks, which - on paper at least - offer firms greater profitability and a neat solution to keeping hold of their brightest senior associates.

But the results are mixed, according to the survey. Nearly half of firms said non-equity laterals had delivered little to no positive impact. The finding echoes recent criticism from veteran City lawyer Jonathan Peddie, who argues that the industry’s focus on profit per equity partner (PEP) can lead to counterproductive fixes - protecting the equity at all costs while increasing numbers of non-equity partners who don’t always have the client relationships needed to land the most profitable work.

Instead of pursuing hires, the report suggests firms might be better served by stemming the flow of existing talent and focusing on retention.