The Retention Trap
Lateral hiring has become the go-to strategy for many law firms aiming to grow. Firms move quickly to bring in outside talent to meet shifting client demands, explore new market opportunities, or fill performance gaps. On paper, this approach promises faster scaling and access to niche expertise. But in practice, it reveals unintended risks to long-term stability.
Lateral Hiring Is Up, but Attrition Is Rising Too
According to the NALP Foundation, lateral associate hiring jumped nearly 25 percent in 2024, driving a 14 percent increase in overall lateral moves. Partner hiring, by contrast, remained steady with just a 2 percent rise. These figures show a busy market, but associate attrition climbed to 20 percent, erasing previous gains. Firms are investing heavily to bring new talent in while watching experienced professionals leave. This imbalance is straining firm culture. Institutional knowledge becomes harder to retain, internal cohesion weakens, and top attorneys increasingly question whether loyalty is rewarded.
When Promotions Stall, Loyalty Fades
Lateral hires can strengthen a firm when they complement internal talent development. Problems arise when external recruitment replaces advancement opportunities. Prioritizing new hires with portable books of business risks sidelining associates who deliver results but see limited growth prospects. This creates a divide between tenured team members and newcomers. High performers begin to doubt if their contributions matter. Over time, disengagement grows, attrition rises, and the leadership pipeline thins. Counteroffers and compensation bumps only mask the symptoms without fixing root causes.
Onboarding Is Not Just a Welcome Lunch
Hiring strong lateral talent is only part of the equation. According to JMC Legal’s 2025 partner hiring trends report, poor integration remains one of the main reasons lateral hires fail to deliver long-term value. Many firms treat onboarding as a formality, rather than a business initiative. But without a structured plan to align new hires with culture, clients, and leadership, firms risk losing them before they’ve even fully arrived.
Karmen Voigt, Lead Legal Recruiter at The Agency, has seen this pattern repeatedly. She explains that many firms believe a welcome lunch and a few introductory emails are enough to create cohesion. In reality, laterals begin observing everything from the moment they walk in—how decisions are made, who is included, and whether leadership is truly present. If those observations suggest that access is limited or conversations are surface-level, trust begins to erode quickly.
According to Voigt, this disconnect often results in transactional relationships, where attorneys feel like temporary solutions rather than long-term contributors. “You can’t just plug in a lateral and expect loyalty,” she says. “Firms need to show that new hires are a meaningful part of the future, not just a quick fix for a gap.” When that level of integration is missing, she notes, it doesn’t just impact retention—it also undermines collaboration, engagement, and performance across the board.
Retention Starts with Design, Not Reaction
Retention is not an outcome that happens after culture is built. It is a signal that the right structures, incentives, and leadership decisions are in place. The most successful firms are the ones investing in internal advancement just as seriously as they invest in external growth.
This kind of commitment includes:
Clear and realistic promotion paths from associate to partner
Balanced internal mobility and external hiring strategies
Leadership accountability for onboarding and integration
Regular evaluation of culture, inclusion, and engagement
Career development tied to mentorship, not just tenure
Retention reflects the firm’s ability to align vision with execution. When attorneys feel connected to the future of the organization—and see their own place in it—they are more likely to stay, grow, and contribute at a higher level.
Build Growth That Lasts
Lateral hiring remains an important tool. But relying on it as the primary growth lever risks undervaluing existing talent. Internal development may take longer, but it builds a stronger, more stable foundation. It preserves institutional knowledge, fosters trust, and creates consistency. Firms that shift focus to long-term alignment over rapid expansion will attract and retain the talent they need. In today’s market, where attorneys are mobile and culture-conscious, lasting growth is not just an advantage — it is essential.
Sources
Thomson Reuters. “2024 State of the US Legal Market.” Thomson Reuters, 2024. https://www.thomsonreuters.com/en-us/posts/legal/state-of-the-us-legal-market-2024/.
NALP Foundation. “Update on Associate Attrition and Hiring (CY 24).” NALP Foundation, 2024. https://www.nalpfoundation.org/news/the-nalp-foundation-releases-latest-update-on-associate-attrition-and-hiring-(cy-24.
JMC Legal. “2025 Trends in Partner Hiring and Lateral Moves.” JMC Legal, 2025. https://www.jmc-legal.com/resources/blog/2025-trends-in-partner-hiring-and-lateral-moves--a-strategic-guide-for-law-firms-and-candidates/.
