The Lost Generation?

At the 250 largest law firms, the arrows are pointing up for many associate indicators. Summer internships are up. Incoming associate classes are up. Recruiting costs for both summer and first-year associates, in dollars and in partner time, are up. Salaries are up (160,000!). Bonuses are up ($50,000!). Concierge services are up. Stress management services are up. Twenty-five percent of the 40,000 graduating law students today go to these 250 firms, by some estimates.

But for all this effort, one critical indicator is down. The larger law firms are reported to be losing 30, 40, 50 percent of associates after three to four years – with half to two-thirds of the defections due to associate, not firm, choice. Where do they go? Smaller firms, more competitive firms in the same city, firms in other cities, in-house, government, teaching, nonlegal jobs. The After the JD study of 4,000 graduates in the class of 2000 – conducted jointly by the American Bar Foundation, Harvard Law School’s Program on the Legal Profession, and others – indicates such churn.

The more important question is: Why do they go? Some associates just wanted to pay off law school debts and had no intention of staying. Others are balancing two careers and need to follow a spouse. Some are lured away by higher-paying jobs in banking, private equity, or hedge funds. Or they don’t want the Faustian bargain of higher pay for more billable hours and a job that skews the work/life balance too far toward work. Finally, some do not want to stay for the likely “no” four or five year hence at the entrance to equity partner Valhalla – or don’t view it as Valhalla at all.

Full Text