In April of 2022, the U.S. Department of Labor’s Job Openings and Labor Turnover Summary (JOLTS) showed the number of workers quitting their jobs (measured as the “quit rate”) was 3 percent of the total U.S. labor force. Roughly 4.5 million workers voluntarily walked away from their jobs. This number matched the previous record set in January of 2022, which was coined “The Great Resignation.” The report showed white-collar sectors were the most affected in industries, such as technology, healthcare, hospitality, and legal professions.
Post-Pandemic Associate Attrition in Big Law
During the first COVID year, 2020, law firm associates’ average annual billable hours increased by 10 percent, but hiring fell by 50 percent. Law firms were billing more hours with less resources, and associates were bearing the brunt of it. A report by the Georgetown University Law Center and the Thomson Reuters Institute shows that “at the end of November 2021, all law firms were edging dangerously close to losing almost one-quarter of their associates in 2021.” Despite Big Law firms increasing compensation in an effort to retain more associates, they’ve continued to lose attorneys to firms or careers that offer a better work-life balance, more flexible hours, and a more positive work environment.
Julian Sarafian, a Harvard law graduate who worked as an associate for a top Bay Area firm, describes the burnout that led him to step away from his legal career in a 2021 Bloomberg article. He writes:
My resumé tells the story of quintessential success in law: After graduating University of California, Berkeley in three years, I attended Harvard Law School and then landed my top job choice at a Bay Area firm. I grinded and was a stellar associate, responding to emails quickly, handling tasks discreetly, and taking ownership of my deal work.
It was only during December 2020, during the height of the pandemic, that my burnout and stress levels forced me to seek help from professionals. I was then diagnosed with severe anxiety and mild depression. After a lot of thinking, I made the choice to step back from my legal career and focus on my mental health for the time being so that I could learn to manage this anxiety that had previously strangled my perspective on life.
He goes on to explain that the type of grind and subsequent burnout he experienced had nothing to do with his law firm or the partners he worked for. But it’s rather a cultural norm within the industry that lawyers have long accepted as part of their jobs. The pandemic added another layer of stress, especially as firms hired less people and lost associates, yet increased their billable hours.
But post-pandemic attrition is not only due to stress of managing greater workloads. The pandemic has shifted workers’ mindsets. As social psychologist Amy Cuddy and clinical professor of management and organizations Nicholas Pierce write in a Washington Post article, “The pandemic, and the challenges of balancing life and work during it, have stripped workers of agency. Resigning is one way they can gain a sense of autonomy.”
The pandemic also spurred personal reflection. As Washington D.C. based therapist Sahaj Kohli told CNBC, “Covid’s devastation led a lot of people to reevaluate what they prioritize in life and how they spend their time. Between logging work hours and spending time with loved ones, people are overwhelmingly choosing their relationships with each other.”
The world has changed in the last two years, and Big Law has to change with it or face losing talent (and business) to firms whose cultures better reflect associates’ values.
5 Big Changes Big Law Must Make
How can Big Law firms retain their associates and keep their talent pipeline full? Firms can start by acknowledging that employees’ priorities have changed. Associates are no longer trading balance and agency for prestige and a big paycheck. They want to feel appreciated, connected, and in control of their lives and futures. Big Law leadership needs to embrace a new culture, one in which associates are not treated like cogs in a wheel that have no choice but to grind it out. This requires five fundamental and permanent changes:
- Manage Stress and Burnout:
Many attorneys are by nature ambitious, conscientious doers. They will accept work and push themselves to meet deadlines beyond what is healthy for their physical and mental well-being. While it might work in the short-term, those attorneys will reach a breaking point like Julian Sarafian did. When that happens, you risk losing your top performers. Partners need to set boundaries, such as shutting off associates’ emails after hours, honoring vacation time, and managing clients’ expectations on timing and availability. Additionally, partners need to embrace and model work-life balance. - Invest in Your Associates’ Futures:
Offer training, mentoring, and development programs at all levels. Encourage professional development and continued learning even if it’s not directly related to the legal profession. Help your associates plan a future within your firm and provide them with the resources to achieve their goals. Think about how you communicate your firm’s mission and values to your employees and define their roles within it. Today’s associates are looking for more than a paycheck, they want to feel connected and like they play an integral role within their teams. - Embrace Hybrid Work Schedules and Flexibility:
Hybrid is here to stay. New hires expect it and often will turn down positions that don’t offer remote work options or schedule flexibility. Big Law needs to embrace a hybrid work schedule as the new norm and adjust their schedules, resources, and office space accordingly. - Encourage Relationships and Teamwork:
Many attorneys cited “feeling isolated” as their reason for leaving their jobs during and after the pandemic. And studies show that strong work relationships help retain employees and increase employee satisfaction. A collaborative work environment, in which you ask for and value associates’ opinions, helps young attorneys feel valued, connected and empowered. - Lead the Change:
It’s not easy to change old habits and push back against a deeply established industry culture. But boutique law firms who have done it are stealing top associates from Big Law firms, paying them less, and billing more hours. The Big Law firm that successfully changes its culture to reflect associates’ post-pandemic values will curb attrition and win the best talent, which will help them sign and retain the best clients. Post-pandemic associates are demanding a new normal– one that appreciates their contributions, aligns with their values, and gives them the opportunity to develop a life and identity outside of the office. Big Law must evolve to survive.
