Herbert Smith has created an 'of counsel' position for its associates as an alternative to partnership, as City firms battle to cut their staff attrition rates.

Associates selected for the new position will be eligible for a 40% bonus as well as an increase in their annual leave.


The firm has also decided to automatically change the status of associates with four or more years of post-qualification experience to that of senior associate. This position will now attract a bonus of up to 30%.


Norman Green, Herbert Smith's chief operating officer, said: 'We believe there is a clear business need for an alternative career structure, a belief supported by the soundings we took among associates.


'What we are seeing is a generational shift in associates' career expectations across the legal sector and it is imperative law firms acknowledge and respond to this as part of their broader focus on retaining talent.'


The firm said there would be no pre-determined limit on the number of 'of counsel' roles. The first promotions will be announced in September.