Research by the International Bar Association (IBA) showed that more than half (54%) of lawyers aged 40 and under are considering switching jobs by 2027. 20% of these lawyers say they will likely leave the legal profession entirely.

This is a sharp contrast to the realities of past decades, when being a lawyer meant staying the course, putting in the hours, and working your way up the ladder.

Now, lawyers have shown they’re capable of jumping ship in a heartbeat. And considering the high costs of replacing lost talent (time-to-hire, financial resources, and training), this is a serious concern for legal leaders across the industry.

But what is driving this trend? And how can legal leaders stem the tide before it throws the industry into a full-blown crisis? This article goes into the details.

TLDR? Here’s what we’ve covered:

• Retaining lawyers is far more cost-effective than replacing them.
• 1 in 5 associates leave their firms, according to Thomson Reuters.
• IBA reports that 33% of lawyers are considering switching to alternative legal careers, with areas like legal ops, contract management, and consulting seeing high interest.
• Lawyers are leaving their jobs due to problems with compensation, flexibility, burnout, toxic workplaces, and limited career growth.
• To retain top legal talent, firms should offer competitive pay, embrace legal tech, promote flexibility, invest in career growth, and foster diversity and inclusion.
• Check out Counsel Corner for more insights on how to build resilient teams.

The current state of the legal job landscape

The legal industry is currently at a generational crossroads. With a median age of 46, half of the industry is made up of Millennial and Gen Z lawyers, while the other half comes from an older generation.

As time progresses, we’ll eventually be in an era dominated by a generation that grew up with technology, values flexibility, and isn’t willing to sacrifice their mental health for the job.

Right now, we’re in the middle of that shift. More lawyers are challenging traditional legal work culture, and firms that refuse to evolve are struggling to retain their best hires.

Here are things we know about the current legal job ecosystem.

#1 Firms are losing 1 in 5 associate hires

According to the State of the Legal Market by Thomson Reuters, associate turnover rate stands slightly above 20%. This means that one out of every five associate hires leave their law firms.

In 2021, the numbers hovered around 24%, which is the highest we'd seen in the last decade. It has slowly declined over the years but has yet to fall back to pre-pandemic levels.

Podcast: How to build and scale legal teams?

“The persistence of a high associate turnover rate not only poses ongoing economic challenges, it raises an interesting question about whether we have reached a point that calls for a fundamental re-examination of how we approach talent management in law firms,” the report said.‍

Also read: Top 10 Legal Trends in 2025: A Deeper Look into the Legal Industry

#2 Specialized lawyers are seeing increased demand

The legal industry is witnessing a rising demand for lawyers with specialized skills, driven by a surge in areas that require their expertise. For instance, Mergers & Acquisitions have been on the rise since 2024, with experts predicting a 10% YoY increase in overall transaction volume in 2025. This has translated into more demand for corporate lawyers specializing in M&A.

The rise of technology and electronic media has also fueled the demand for IP attorneys. Other areas seeing growing demand include litigation, employment law, and compliance.

Despite the growing demand for legal experts in these areas, 88% of managers say they have difficulties finding candidates with the right skills.

To navigate the competitive talent market, law firms and corporate organizations are not only offering higher salaries for new specialized hires but also increasing compensation for existing talents to keep them from getting poached by competitors.

Podcast: Advice to Young Lawyers

#3 More lawyers are considering alternative legal career options

A growing number of legal professionals are rethinking the traditional law grind and exploring new career paths. In IBA’s report, 33% of legal professionals say they’re considering switching to an alternative legal profession by 2027. Popular choices include roles in legal operations, contract management, compliance, consulting, and data privacy, among others.

This trend is in step with the booming Alternative Legal Services (ALS) market, which has hit an estimated size of $28.5 billion as of 2025.

The move towards alternative legal careers is driven by the growing desire for work-life balance, less stress, and more flexibility among lawyers.

At the same time, advances in technology and AI are creating new opportunities and opening doors to fresh, innovative roles that didn’t exist a decade ago.

Also read: Alternative Legal Careers for Lawyers: 20 Realistic Ideas

Why are lawyers switching jobs?

Source: Shashank Bijapur via LinkedIn

To sufficiently proffer a solution to the volatile turnover rates threatening the legal industry, it is important to understand the WHY behind this reality.

Here are our findings:

#1 Money still plays a big role

In IBA’s report, approximately 1 in 2 lawyers mentioned salary as a major factor in their decision to jump ship.

A different study by Realm Recruit found that lawyers who switched firms saw a salary increase of 15% compared to those who stayed loyal.

This doesn’t mean that lawyers are generally underpaid. In fact, more than half (52%) of surveyed lawyers say they’re satisfied with their current salary. This number jumps to 74% in organizations with pay transparency.

So, the need for higher pay may be driven by inflation and rising costs of living.

Also read: Lawyer Salaries: What Compensation To Expect In 2025

#2 Lawyers want more flexibility

The traditional legal work environment is known to be rigid, with expectations of long hours and constant availability. But modern lawyers are pushing against this status quo, demanding more flexibility as work-life balance continues to get more attention.

If their current workplace doesn’t give them the flexibility to manage their time and prioritize their well-being, it’s only a matter of time before they find the exit door.

#3 Burnout is driving lawyers to the edge

“Our profession is plagued with mental illness, stress, and even substance abuse. A way to mitigate those circumstances is knowing yourself, your values, what you care about, what's not going to mesh with you, understanding the business landscape, and figuring out a way to marry all these elements.”

~ Akshay Verma, COO, SpotDraft
Shaping a Purpose-Driven Career in Law

A study by Axiom revealed that 78% of lawyers are burnt out, with 69% of this group considering leaving their jobs within the next year.

Lawyers are working insanely long hours and facing mounting pressure to do more with less. This is pushing them to their limits, forcing many to rethink their careers altogether.

Source: Sreya Bhar via LinkedIn

#4 Workplace culture now makes a bigger difference

A toxic workplace can be just as big a deal-breaker as low pay or long hours. In fact, 30% of lawyers say they left their jobs because of poor workplace culture.

Whether it’s a lack of support, bullying, or a failure to address diversity and inclusion, a bad culture makes it hard for lawyers to stay engaged.

“I think in-house counsel are put into boxes, and the under-appreciation is often because folks want to check that box to get through to the next stage.”

‍~ Ken Priore, ex-Director of Privacy, Atlassian
Mastering the Intersection of Law, Technology, and Privacy

#5  Lawyers won’t stay where their career growth isn’t supported

Lawyers aren’t just looking for a paycheck, they want a career that moves forward. 

But in many organizations, the path to growth is slow, unclear, or out of reach. 

Without real opportunities to develop, take ownership of meaningful projects, or get mentored by those ahead, lawyers feel like they’re running on a hamster wheel. Eventually, they leave in search of better opportunities.

Also read: Lawyer Job Outlook For 2025

How to retain the best legal talent

“Without talented individuals, none of the legal work gets done or gets done well.”

‍~ Sterling Miller, CEO and Senior Counsel for Hilgers Graben PLLC
Attracting, Training, and Retaining In-House Legal Talent

Let’s say a mid-level legal counsel leaves your company, so you get HR to launch a job ad on LinkedIn, LawCrossing, or other job boards.

Based on findings from Brooke Lively, this entire process will cost a minimum of $230,000, considering the resources used for setting up job ads, running multiple interviews, and training new hires, as well as lost revenue during the hiring gap. In some cases, the estimates can go as high as $500,000!

But the real problem isn’t just the money—it’s the chaos that follows. Work piles up, the rest of your legal team is stretched thin, and before you know it, they’re eyeing the exit, too.

So, how can you minimize turnover and the ripple effects that come with it?

Webinar: Building and Managing an Efficient In-House Legal Team

#1 Offer competitive compensation and benefits

Salary may not be the most important factor for many lawyers, but it definitely plays a large role in talent retention.

If your best talents know they can get far better pay elsewhere, there’s a chance they might jump ship if the right opportunity comes.

Offering a competitive base salary, performance bonuses, and other incentives is a good way to show you value their work. If they feel fairly compensated, they’ll be more likely to stick around for the long haul.

#2 Support your legal team with the latest technology

No lawyer wants to spend hours drowning in paperwork and manual processes.

If your legal tech is outdated, your team is wasting valuable time—and getting increasingly frustrated in the process. Invest in robust tools that’ll support processes like contract management, legal research, and compliance.

When you make their job easier, they’ll be more productive, less stressed, and far less likely to pay attention to job listings.

“We are able to draft and redline contracts inside the CLM tool. Therefore, we no longer need to rely exclusively on tools such as MS Word and Google Docs. Now, all stakeholders can view and access just one true version of the contract.”

~ Igor Poroger, Director of Legal, EMEA, Vectra AI
‍‍How CLMs Empower Legal Teams in B2B SaaS Companies

#3 Create a flexible work environment

“It is in the best interest of firms to address their flexible working policies, as our research shows the next biggest single factor firms can continue to meaningfully compete on is pay.”

~ Duane Cormell, the managing director of Realm Recruit
Flexibility trumps pay as lawyers top priority, research shows

Flexibility ranks high for lawyers in today’s legal industry. In a report by Realm Recruit, 83% of surveyed lawyers said they'd consider flexibility over pay when choosing a potential employer.

If your company is still clinging to rigid office hours and outdated policies, you’re handing your competition an easy way to poach your best lawyers.

Give your legal team the autonomy to manage their schedules, through remote or hybrid work schedules, and you’ll see higher job satisfaction and better retention rates.

“I provide my team with a lot of autonomy because that's what people want. I can also do that because they're amazing and do great work. They're very committed to the company. They're very good professionals, and most of them are not fresh out-of-college. Providing autonomy, if you can, is invaluable to employees.”‍

~ Lydia Cheuk, GC at Away
Brand Building for Legal Teams

#4 Support their growth

"You have to recognize that you can't just put them in a very narrow box and say, ‘I'm only giving you tactical stuff, and that's it.’ You have to balance it with empowering them to present to the CEO and the board, empowering them to drive strategic projects, and making sure that when you do give them those opportunities, they do it when they're ready and prepared to succeed."

~ Doug Luftman, Chief Legal Officer, Trust & Will
The Key to Success as an In-House Legal Counsel & Leader

The best lawyers are ambitious, so your paycheck is just one part of the equation. They want career growth, too. If they feel like they’re stuck in a dead-end role with no opportunity to advance, they’ll likely resign the moment a more promising offer comes along.

To avoid this, you must support their growth. Empower them to do more than the basic stuff. Let them take ownership of projects and even allow them to represent your team in board meetings sometimes. Invest in their development, whether it’s through mentorship, leadership training, or new challenges that push them beyond their comfort zone.

#5 Prioritize diversity and inclusivity

“A key to attracting and retaining legal talent going forward will be your ability to build a diverse team of players.”

‍~ Sterling Miller, CEO and Senior Counsel for Hilgers Graben PLLC
Attracting, Training, and Retaining In-House Legal Talent

In Wolters Kluwer’s Future Ready Lawyer Survey Report, 72% of respondents say they consider diversity and inclusivity as important factors for attracting and retaining legal talent.

Lawyers want to work where they feel seen, heard, and represented at all levels. It’s just not enough to hire diverse talent. Legal leaders must create an environment where everyone has a real shot at growing, leading, and making an impact.

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Source: Amy Guzman via LinkedIn

Final takeaway

Retaining your best legal talent is far cheaper than replacing them. As a legal leader, you must understand and adapt to the changing dynamics of legal work culture.

Lawyers need flexibility. They need a work environment that prioritizes their well-being, career growth, and sense of purpose.

Meet these expectations, and you won’t just retain your best legal hires, you’ll build an army of loyal talents genuinely committed to the success of your organization.

Want more insights on how legal leaders are building resilient teams? Feel free to visit Counsel Corner.

Counsel Corner is a community-driven space where in-house counsels and legal experts share strategies, best practices, and real-world solutions to pressing issues around the industry.

Click here to access it for free.

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