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The Leaky Bucket Problem: Why Law Firm Growth Depends on Retention, Not Just Hiring

In conversations about growth, hiring is often the most visible lever law firms pull. New roles are approved, recruiters are briefed, and attention turns to bringing talent into the business. But in many of the conversations we are having with firms, it is becoming increasingly clear that growth driven by hiring alone is rarely sustainable.

Where retention is overlooked, firms can find themselves stuck in a cycle of backfilling roles rather than genuinely building capability. Over time, this creates a “leaky bucket” effect, where energy and investment are absorbed by replacing people rather than moving the business forward.

From our perspective as recruiters working closely with both firms and candidates, retention is not a separate HR issue. It is a fundamental part of a firm’s growth strategy.

 

Hiring without retention limits growth

Most firms do not plan to lose good people. Yet when we look at hiring patterns across the market, many teams are effectively standing still. New hires are made, but headcount does not meaningfully increase. Capacity remains tight, pressure persists, and the same roles reappear on hiring lists year after year.

This pattern is reflected in wider industry insight. Recent analysis of associate attrition across the legal sector highlights how costly and disruptive ongoing turnover can be for firms, particularly where experienced lawyers are concerned.

This is where retention becomes critical. If a firm’s recruitment activity is largely focused on replacing talent that has already left, hiring becomes reactive rather than strategic. Even strong recruitment outcomes can struggle to make a lasting impact if the underlying reasons people leave are not addressed.

 

What we hear when people leave roles

Because we sit in the middle of the market as it were, we are often having very honest conversations at the very point someone decides to move on. These discussions are rarely about a single issue, and they are often more nuanced than salary alone.

Through candidate conversations and insight from annual salary survey and market insight research, some consistent themes emerge around why people leave roles:

  • A lack of clear progression or long-term direction
  • Feeling undervalued or overlooked rather than poorly paid
  • Workload pressure that feels unsustainable over time
  • A disconnect between what was promised and the reality of the role
  • Limited flexibility or autonomy as personal circumstances change

This aligns with recent research into lawyers quitting firms, which points to progression, workload and long-term development as key drivers behind movement across the market.

These are not abstract HR concepts. They are commercial risks. When experienced lawyers leave, firms lose knowledge, client relationships and momentum. Replacing that expertise takes time and cost, even in a strong hiring market.

 

Retention as a strategic advantage

Firms that approach retention proactively tend to ask different questions. Rather than focusing solely on how to attract talent, they spend time understanding what keeps people engaged, motivated and committed.

This thinking is echoed in strategic sector insight from the Law Society, which identifies talent retention as a key priority for firms looking to grow sustainably and plan for the future.

This does not mean trying to retain everyone at all costs. Some movement is healthy, and not every departure is a failure. But there is a clear difference between natural evolution and preventable attrition.

From what we see, firms that retain well often share a few characteristics:

  • Transparent conversations about progression and expectations
  • Competitive, well-communicated reward structures
  • Realistic workload management, particularly for experienced fee earners
  • Managers who are engaged, present and willing to listen
  • A culture where contribution is recognised, not just output

Importantly, these firms tend to hire more effectively as well. When retention is strong, hiring conversations are calmer, more strategic and more selective.

 

How recruitment insight supports retention

One of the advantages of working with a specialist recruiter is access to market insight that firms do not always see internally. We are speaking to professionals who are actively comparing roles, weighing up trade-offs and articulating what they really want next.

That insight is valuable even when a firm is not hiring.

By feeding back anonymised themes from candidate conversations, salary data and market movement, we can help firms sense-check their own retention assumptions. In many cases, small adjustments make a meaningful difference, particularly for experienced professionals who may not be actively looking but are open to the right conversation.

Retention strategies informed by real market data are far more effective than those built on assumption.

 

Shifting the focus from replacement to growth

When retention improves, the dynamic of hiring changes. Instead of recruiting to stand still, firms can recruit to grow. That might mean expanding into a new practice area, strengthening leadership capability or creating genuine succession opportunities.

From our perspective, the most successful firms are those that view hiring and retention as two sides of the same strategy. They understand that keeping talented, skilled professionals is what allows recruitment to support growth rather than simply patch gaps.

The question many firms are now asking is not whether they need to hire, but whether their current approach allows hiring to drive progress rather than recovery.

 

About Clayton Legal

At Clayton Legal, we work closely with law firms across the UK, supporting them with both recruitment and market insight. Through our ongoing conversations with candidates and hiring managers, and through tools such as our salary survey, we develop a detailed understanding of why people move roles and what truly matters to them.

Whether you are a firm thinking about growth and retention, or a legal professional considering your next step, our role is to have honest, informed conversations that help you make confident decisions for the future.

If you’d like to talk through what this means for your team or your career, let’s chat.

 

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Posted By

Sam Oliver

Recruitment Consultant