Retaining Employees Past 3 Years

In our 2024 Legal Trends and Challenges Survey, one key finding stood out: many firms are struggling to retain employees past the three-year mark. While the average tenure may hover above five years, the real challenge lies in the steady trend of employees leaving between two and four years of service. This turnover disrupts team stability, slows growth, and creates ongoing recruitment challenges.

To help address this issue, we've highlighted the top reasons employees are leaving—and three strategies that firms can use to retain legal talent for the long term.

Why Employees Are Leaving

1. Salary and Benefits

Compensation remains the number one factor for employees evaluating new job opportunities. Nearly half of respondents told us that pay and benefits outweigh factors like mentorship or the complexity of work. Many shared dissatisfaction with stagnant salaries, especially in the face of rising inflation and cost of living increases.

One survey participant summed it up: "The inflation raise was not even comparable to what we are living through. It was like giving me $5.00 when I really needed $30.00.” When essential costs like groceries rise, employees feel financial pressure and seek better-paying roles elsewhere.“

In 2025, according to City News, a typical family four will spend an estimated amount of $16,833.67, an increase of $801.56 compared to 2024. As living costs continue to climb, discussions around fair pay grow louder, and will continue to remain front and center.

Do you think this remains the biggest reason employees leave, or are other factors just as important or even more important?

2. Work-Life Balance

The second most common reason employees leave is a lack of work-life balance. Many respondents described being overworked, stressed, and unable to maintain healthy boundaries between their personal and professional lives. Burnout takes a toll, leading employees to seek roles that offer more balance, flexibility, and support for their well-being.

In 2025, hybrid and flexible work is now common, and employees expect some level of flexibility. While not a deal-breaker, legal professionals still see it as important. In Ontario, leaders plan to bring public servants back to the office five days a week by 2026, and pressure is growing on other industries to follow. Would you agree if this applied to the legal industry?

3. Career Growth and Development

Employees who feel stuck in their current roles often leave to pursue new opportunities. Our survey found that legal support positions are especially at risk, with 50% of firms reporting difficulty retaining legal support staff compared to any other role. Employees want clear pathways for advancement, professional development opportunities, and recognition for their growth. Without these, they are more likely to move on.

In 2025, with younger generations entering the workforce, the demand for career pathways and growth opportunities is stronger than ever. One survey participant stated, "I like to grow and improve as a person, and moving into a higher-level role makes me feel proud and good about myself and what I do." Would you agree that creating clear growth opportunities is the best way to retain legal professionals in 2025?

3 Ways to Retain Legal Talent

1. Enhance Salary and Benefits

Firms should regularly review salaries to ensure they remain competitive and reflect real cost-of-living increases. However, for smaller firms that may not always be able to match larger competitors on pay, strengthening benefits can make a meaningful difference. Wellness programs, mental health support, and professional development opportunities are valuable additions that can improve retention even when salaries cannot be raised significantly.

2. Improve Work-Life Balance

Policies that encourage flexibility, parental leave, mental health resources, and disconnecting from work can reduce stress and burnout. Burnout is one of the consistent problem areas for the legal industry, and while it cannot be completely eliminated, flexible working opportunities can help. A healthier work-life balance boosts morale, increases productivity, and strengthens retention.

3. Foster Career Growth and Development

Creating clear promotion pathways, offering mentorship programs, and supporting training initiatives show employees that their career goals matter. Mentorship opportunities can help employees feel valued and see that their firms are truly investing in them, rather than just dropping them into the deep end. Continuous learning and recognition can help legal professionals feel invested in their long-term future with the firm.

These findings were made in 2024—do you think they are still the most pressing issues in 2025, or are there even larger factors influencing retention in the legal industry today? Perhaps challenges like technology adoption, generational shifts, or economic pressures are now playing a bigger role.

Do you agree? Let your voice be heard when our Tracument Legal Survey comes out! If you want to learn more about Tracument, click here.