The traditional path to partnership in law firms has long been considered the pinnacle of a legal career. However, recent trends indicate a shift in the aspirations of legal associates, with fewer individuals aiming to become partners. This change in career goals can have significant implications for the growth and sustainability of law firms. In this blog, we will explore the downside of having fewer people wanting to make partner and the impact this trend can have on the growth of your law firm.
The allure of partnership has diminished for many legal associates. A January 2024 ÀÏ˾»úÎçÒ¹¸£Àû survey found that only 25% of associates at law firms want to make partner at their current firm within the next five years. This percentage drops even further for associates at large (22%) and medium-sized firms (23%). The primary reasons for this shift include a desire for better work-life balance and higher salaries.
Deborah Finkler, Managing Partner at Slaughter and May, explains, "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."
I want to download the full survey
With fewer associates aspiring to become partners, law firms face challenges in retaining top talent and maintaining a robust talent pipeline. The survey revealed that 70% of associates would stay at their current firm for a higher salary or compensation package, while only 36% would stay for a better work-life balance. This indicates that financial incentives alone may not be enough to retain associates in the long term.
Moira Slape, Chief People Officer at Travers Smith, notes, "The attractiveness of becoming a partner has lessened. The mindset has shifted in the last five years during and after the pandemic." This shift in mindset means that firms need to find new ways to engage and retain their associates, such as offering alternative career paths and ensuring a healthy work-life balance.
Get access to the largest collection of UK law, legislation, case law, commentary and comprehensive practical guidance.
The financial risks and responsibilities associated with partnership can also deter associates from pursuing this career path. According to , the average profits per equity partner (PEP) declined by 7% for the top 11-25 firms by revenue and by 10.8% for the top 26-50 firms. This decline in PEP can make partnership less attractive to associates who are already concerned about the financial pressures of the role.
James Knight, CEO of fee-sharing law firm Keystone Law, believes that the decline in interest in partnership demonstrates a systemic crisis in the profession that goes beyond financial considerations. He states, "This demonstrates a systemic crisis in the profession that goes beyond financial considerations."
Succession planning becomes more complex when fewer associates aspire to become partners. Law firms need to ensure a steady pipeline of future leaders to maintain their growth and stability. Mark Smith, Director of Strategic Markets at ÀÏ˾»úÎçÒ¹¸£Àû, points out, "If there are fewer people coming through, that's not such a bad thing. You can keep the profits per equity partner tight. But the reality is, if a firm is going to grow, the whole pyramid needs to grow along with it."
Firms must develop strategies to identify and nurture potential leaders, even if they do not follow the traditional partner track. This may involve creating bespoke career paths that allow high-performers to curate their own career trajectories and offering roles with significant responsibility and autonomy, such as Legal Director positions.
I want a free trial of Lexis+ content
A strong partnership model is often integral to a law firm's culture and client relationships. Partners typically play a crucial role in mentoring junior associates, fostering a collaborative work environment, and maintaining long-term client relationships. With fewer associates aiming for partnership, there is a risk that these aspects of firm culture may weaken.
Elizabeth Rimmer, CEO of legal mental health charity LawCare, observes, "Junior solicitors are no longer aspiring to be partners. They will likely take one look at the lifestyle of current partners and be put off." This sentiment highlights the need for firms to adapt their culture and support systems to align with the evolving aspirations of their associates.
Read the full report here.
The decline in the number of associates aspiring to become partners presents significant challenges for law firms. To ensure continued growth and stability, firms must adapt to the changing aspirations of their associates by offering alternative career paths, addressing financial concerns, and fostering a supportive and inclusive work environment. By doing so, law firms can retain top talent, maintain a strong talent pipeline, and continue to thrive in an increasingly competitive legal landscape.
* denotes a required field
0330 161 1234