Firm Performance
Next in the Beyond Practice Management series, Phil Flora examines the talent crisis facing today’s law firms—and how data-driven hiring and retention strategies can turn people into a true performance advantage.
By Phil Flora, Vice President of Sales, SurePoint Technologies
Part of SurePoint’s Beyond Practice Management: The Future of Firm Performance series
In the last article, The Power of Change: Aligning People, Process, and Performance for Growth, Olivia Mockel explored how law firms must embrace transformation as a discipline—not a disruption. But change alone isn’t enough. To truly unlock Firm Performance, firms must invest in the people who will drive it.
Talent is the ultimate competitive advantage. Yet across the legal industry, firms are struggling to attract, retain, and empower top performers. Attrition remains high, hiring is expensive, and retention challenges persist—even in firms with strong reputations.
This isn’t just a people problem. It’s a performance problem. Firms that fail to modernize their talent strategy risk losing their edge in a market that increasingly rewards agility, innovation, and culture.
Annual turnover rates in law firms have reached as high as 25%, with mid-level associates most likely to leave. The cost of replacing a single associate can exceed $500,000 when factoring in lost productivity, recruitment fees, and training—not to mention the disruption to clients and internal teams.
Traditional hiring models are no longer sufficient. Pedigree-based recruiting, subjective evaluations, and outdated retention strategies are failing to meet the expectations of today’s legal workforce.
To reverse this trend, firms must adopt a data-driven approach to hiring and retention—one that turns talent into a measurable business advantage.
For decades, law firm hiring has emphasized pedigree and credentials—law school rankings, grades, and prior experience. But these indicators are poor predictors of long-term performance or cultural fit.
Three core issues stand out:
Forward-thinking firms are moving beyond intuition. They’re integrating performance and recruiting data to make more confident, equitable hiring decisions—and they’re seeing measurable results.
The firms that are winning the war for talent are those that use data not only to inform hiring, but to support attorneys throughout their careers with clear paths, meaningful work, and the right technology.
Other industries have long relied on predictive analytics to identify the best candidates and forecast performance. Law firms now have the same opportunity to leverage predictive analytics to identify top candidates and forecast performance. By analyzing historical hiring data, associate metrics, and client satisfaction scores, firms can make smarter, more strategic decisions.
Benefits include:
By the Numbers: 28% of all attorneys in the AmLaw 200 are at risk of leaving their firms—closely aligning with the 29% turnover rate we observed in 2024 (SurePoint Legal Insights).
Attracting talent and hiring is only half the battle. Retaining top talent requires a workplace where attorneys can grow, contribute, and feel valued.
According to industry surveys like the Law Firm Culture Survey by Major, Lindsey & Africa, attorneys want more emphasis on well-being, work-life balance, and career development. Firms that align with these expectations are winning the war for talent.
Key strategies include:
The most successful firms aren’t waiting for attrition to force change. They’re leading with innovation.
Examples include:
These firms understand that talent strategy is business strategy. They’re building cultures that attract top performers—and keep them.
As client expectations evolve and legal service delivery becomes more complex, law firms must ensure they have the right people to thrive. Those that embrace data-driven hiring, AI-powered retention strategies, and a culture of continuous development will lead the next era of legal performance.
Questions every firm should ask:
By answering these questions—and acting on the insights—firms can reduce costly turnover, build stronger teams, and position themselves for long-term success.
Next in the Series: Winning the war for talent is only part of the equation. In the next article, Dan Hurley, SurePoint's Chief Commercial Officer, explores how forward-thinking firms are using connected systems, automation, and AI to create a modern workplace—and a measurable edge.
Follow the full series: Beyond Practice Management: The Future of Firm Performance.
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