The study also shows that associates are leaving firms earlier in their careers
Associate attrition across Canadian and US law firms rose in 2024 for the first time since 2021, increasing from 18 to 20 percent, according to new data from the NALP Foundation.
The total number of associate departures climbed to 4,125, up from 3,875 in 2023.
The timing of exits was relatively consistent throughout the year, although a dip occurred in the spring following bonus payouts.
Attrition was highest among the smallest firms – defined in the survey as those with fewer than 100 lawyers – reaching 31 percent. In contrast, the three larger firm size categories reported attrition rates between 17 and 19 percent.
The study also shows that associates are leaving firms earlier in their careers. In 2024, nearly three-quarters (74 percent) of associates who departed did so within their first four years at the firm. About one-fifth left after two years, and roughly half exited by the three-year mark.
The most common next steps for departing associates were joining another law firm or moving in-house. Lateral moves to another firm accounted for 41 percent of departures – up from a record low of 31 percent in 2023 – while about one in five went to corporate in-house roles, an increase from 15 percent the year before.
Reversing the last two years’ trend, associate hiring increased among law firms in 2024, with the total number of entry-level hires exceeding lateral hires (55 vs. 45 percent), driven primarily by the largest firms, the data shows.
While slightly fewer firms reported rehiring former associates, those who returned – commonly called “boomerangs” – made up a larger share of overall hiring. In 2024, 11 percent of all associate hires were rehires, up from seven percent the previous year.
“This new data shows shifts in the talent market are emerging, with the rise in entry-level recruiting as well as earlier departures by associates,” says Fiona Trevelyan Hornblower, president and CEO of the NALP Foundation.
Trevelyan Hornblower says the attrition rate for Canadian associates was slightly below that of their US-based counterparts.
Jennifer Mandery, vice president for research at NALP Foundation, adds that Canadian associates are likelier to leave their law firms within five years than their US counterparts.
“Over the last couple of years, the number of those leaving within five years has really dramatically increased… They're leaving much sooner than they have in the past,” Mandery says.
Trevelyan Hornblower says that during the pandemic, many associates moved for signing bonuses or salary bumps. With those financial incentives diminishing, decisions are driven by a broader mix of factors.
While compensation remains among the major drivers – especially considering student debt – other drivers such as professional development, mentorship, and the opportunity to shift practice areas are also shaping associate decisions.
“Associates are taking a holistic approach… They look at several different key factors. The top factors are not only compensation but work-life balance and career paths,” Mandery says.
Though many top motivators for staying or leaving are consistent across borders, some regional distinctions remain. For example, Trevelyan Hornblower says US-based associates tend to place more importance on health benefits, likely due to the absence of universal healthcare in the US.
In contrast, Canadian associates consistently emphasize access to professional growth opportunities.
Mentorship emerged as a key consideration among Canadian associates, with both quantitative data and open-ended responses pointing out that young lawyers in Canada find it more important as a factor than associates in the US.
“For Canadian associates … there was a lot of narrative responses about having opportunities for mentoring. That’s a big desire for them,” says Mandery.
