It takes almost two years of employment for law firms to recoup the cost of hiring, training and ultimately losing young lawyers, a Canadian survey has found, with the average cost of an associate’s departure put at C$315,000 (£137,000) – approximately twice the salary.

The major report by research company Catalyst – sponsored by a host of leading Canadian law firms – aims to build the business case for firms offering flexible working to staff, and found a clear link between fostering a more balanced work/life culture and staff retention.


The report was compiled via a survey of almost 1,500 lawyers, while four of the country’s largest firms gave access to their books to allow researchers to work out the cost of departure in an effort to enable practices to quantify the financial impact of associate turnover.


They found that it was made up of C$244,00 in investment costs – recruitment from law school and training – and C$71,000 in ‘separation costs’, such as time, inconvenience and lost productivity as the associate winds down. This took an average of 1.8 years of employment to recoup (Canadian lawyers do not have an equivalent training contract period).


Catalyst said it was not possible to put a definitive figure on what is an acceptable staff turnover rate at firms, as it depends on both strategic considerations – any associate turnover may be undesirable during a period of rapid growth at a practice, and vice versa – and individual considerations, with a firm calculating how ‘acceptable’ the cost of an associate’s departure is depending on skill level and performance.


The survey of lawyers found that 62% of women and 47% of men intended to stay with their firms for five years or less. Both sexes cited an environment more supportive of family and personal commitments, and more control over work schedules, as the top factors to consider if they were to change firms. Associates with positive perceptions of their firms’ work/life cultures intended to stay for longer, it found.


The survey concluded: ‘Our findings suggest firms that foster a balanced work/life culture stand a better chance of retaining their associates, both men and women… That said, women generally are more likely than men to report intention to stay with their firms for five years or less.


‘Given that women now comprise 50% or more of law school graduates across Canada’s top law schools [the figure is more than 60% in England and Wales], law firms that are intent on recruiting and retaining the best candidates need to identify and address the core issues which may undermine a supportive work environment for women associates.’