The declining allure of the partnership model according to LexisNexis
Our new report, Disloyal lawyers: has the partner track lost its lustre, explores the shifting ambitions of associates, the urgent needs of legal leaders, and the future of the partnership model. This model, where partners share profits, liabilities, and management of the firm, has long been a staple structure of legal practices. But, our report demonstrates how the dream of making partner is quickly fading.
Our report shows less than half (49%) of law firm leaders think the current generation of associates are interested in becoming partner. It also reveals that only a quarter (25%) of associates want to make partner at their current firm within the next five years, dropping to 22% for lawyers at large firms and 23% at medium-sized firms. Leaders and associates agree: the allure of partnership is in decline. This raises key questions: What’s driving that decline? What are the causes of shifting ambitions? How should firms react?
Here, we explore the core drivers of the decline in the demand for partnership and the increasing importance of work-life balance, including the diverse options available to associates.
The increasing value of work-life balance
The pandemic drove the shift in priorities towards a better work-life balance. And, by the necessity of lockdowns, inadvertently led to improvements in working life, particularly with remote working. This is further reinforced with Gen Z prioritising their work-life balance, and Millennials are proving instrumental. Generations Expert, Dr Eliza Philby, explains: ‘The major puzzle piece is not Gen Z’s desire for work-life balance but Millennial managers who are juggling kids, the mortgage rate crisis, have done the ten-year slog and don’t want to commute.’
Shifting priorities, across various generations, has led to a shifting mindset in the approach to the partnership model. Moira Slape, Chief People Officer at Travers Smith, says the allure of partner has lessened as a result: ‘The mindset has shifted in the last five years, during and after the pandemic.’ And our report confirms the above: more than two-thirds (71%) of associates place work-life balance in their top priorities when looking for a new role.
Several commentators in the report said the perception that partners suffer from a work-life imbalance discourages many aspiring associates. Elizabeth Rimmer, CEO of legal mental health charity LawCare, says: ‘Associates will likely take one look at the lifestyle of current partners and be put off.’ James Knight of Keystone Law echoes the point. He believes junior lawyers become quickly disillusioned when they see what life is like for partners: ‘This demonstrates a systemic crisis in the profession that goes beyond financial considerations.’
And it’s not simply the perception of partners, but the perception of the road to partnership that deters associates. The road, according to the responses in the report, is blurry. One former partner suggested excessive ambiguity around the partner track: ‘The requirements for promotion aren’t wholly clear. There’s still a great deal of favouritism.’ A corporate law senior associate echoed the sentiment: ‘There’s an opaqueness around it, depending on your team.’
Associates perceive partners as overworked. They imagine progression to partnership as difficult, with no certain steps, and their greatest priority is work-life balance. It’s perhaps no surprise, then, that many of the new generation of associates are deterred by the partnership model.
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The rise of alternative legal service models
Once upon a time, almost all law firms followed the same structure: the partnership model, with lawyers working up the ranks and sharing the firm’s profits. But, in recent years, a host of alternative legal services have disrupted the sector, providing variety to clients and more options for ambitious associates. Freelance lawyers are performing on an adhoc basis, alternative legal service providers are offering on-demand tech-driven solutions, platform firms are structured around autonomy and client solutions, and so on. The alternatives have shaken up the sector at large and has certainly shifted ambitions to become a partner.
However, our report unveiled something interesting: 75% of associates were happy staying in Private Practice. John Joyce, Managing Partner at Addleshaw Goddard, provides some clarity. He’s noticed the growing number of career opportunities available: ‘Associates are now able to engage in a much more open dialogue about their futures without negative consequences.’ This means while many are happy in Private Practice, they’re open to alternatives. The coveted path to partner is no longer assumed.
Many associates echoed that sentiment. One senior associate says progression now comes in different ways. Creating bespoke career paths outside the partner track has become common. Another associate describes how peers are always talking about taking the next professional step: ‘People are so desperate to upgrade, they will consider leaving if they can’t, and they do.’
Associates are confronted with more choices than ever, both inside and outside of their current firms, and less stigma around moving firms. Associates remain open to alternative legal service models while remaining open to alternative paths within firms. The result is that the partnership model, once the rule in the legal sector, is fast becoming the exception.
Discover the full findings in our free report, Disloyal lawyers: has the partner track lost its lustre. Download today!
