When a valued attorney submits a resignation, many law firms have the same immediate reaction:
“Can we keep them?”
A larger compensation package. A title change. Promises of future opportunities. Greater flexibility.
Sometimes those efforts work.
But before extending a counteroffer, law firm leaders should pause and ask a more important question:
Are we trying to retain an attorney, or are we simply reacting to losing one?
After years of working with attorneys and law firms through lateral moves, I have learned that the answer often determines whether the counteroffer strengthens the firm or merely delays an inevitable departure.
The financial stakes are significant. According to the ABA Journal, losing an attorney can cost a firm between $200,000 and $500,000 per lawyer. Some estimates put that figure even higher, ranging from $400,000 to more than $800,000 for experienced attorneys, with attorney turnover costing the legal industry roughly $9.1 billion annually across just the 400 largest U.S. firms. [1][2]
That context alone should reframe the counteroffer conversation from a reactive HR moment into a strategic business decision.
Question #1: Why Is This Attorney Leaving Now?
Very few attorneys resign over a single issue.
The decision is usually the result of months or even years of accumulated frustration. Compensation may be part of the equation, but so are career advancement, leadership, workload, firm culture, autonomy, succession opportunities, and confidence in the firm’s future.
If leadership does not fully understand why the attorney is leaving, a counteroffer may address the symptom while leaving the underlying problem untouched.
Industry data reinforces this. A recent NALP Foundation report found that 82 percent of associates who left law firms in 2023 had five years or less of tenure at their firms, pointing to systemic issues that go well beyond compensation. [3]
Question #2: Would We Be Making These Changes if They Hadn’t Resigned?
This is one of the most revealing questions a firm can ask itself.
If the attorney deserved a salary adjustment, expanded responsibilities, or a clearer path to advancement six months ago, why did those conversations only begin after a resignation letter arrived?
Counteroffers often expose opportunities that leadership failed to recognize earlier. As one industry source put it bluntly, if the firm was willing to offer a compensation increase or a promotion only after a resignation, the firm had been knowingly underpaying and undervaluing that attorney all along. [4]
Question #3: Are We Solving the Real Problem or Simply Increasing Compensation?
Money is easy to change.
Trust, communication, mentorship, and long-term vision are much harder.
If an attorney is leaving because they no longer believe the firm can provide the future they want, increasing compensation alone rarely changes that belief.
The data supports this. Despite associate compensation reaching $180,000 in some markets, attrition rates have continued to rise, demonstrating that pay increases alone are not successfully buying attorney loyalty. Law firms frequently respond to staffing shortages by offering higher salaries and more attractive benefit packages, yet many have found that paying more may help get someone in the door, but money alone is not a successful long-term retention strategy. [5][6]
Sometimes a counteroffer simply postpones another resignation.
Question #4: What Message Does This Send to the Attorneys Who Stayed?
Every counteroffer is noticed.
Attorneys who remained loyal may begin asking difficult questions.
Why did someone have to resign before leadership acted?
Does the firm value the attorneys who stay as much as those who threaten to leave?
Firm-wide attrition has worsened at all seniority levels, now averaging 27 percent, and lateral hiring for non-equity partners is providing little, no, or even negative impact among nearly half of responding firms. These findings suggest that retention efforts deserve as much attention as recruitment. [7]
Retention strategies should strengthen culture, not unintentionally undermine it.
Question #5: If They Stay, Has Trust Truly Been Restored?
A resignation changes the relationship.
Leadership now knows the attorney was prepared to leave.
The attorney knows it required a resignation to be heard.
Sometimes both sides move forward successfully.
Other times, the trust that once existed has quietly changed.
Candidates who accept counteroffers frequently find themselves back in the job market within a year for the same reasons that prompted them to look in the first place. A firm’s culture does not change overnight. [4][8]
That does not mean a counteroffer is always the wrong decision. It simply means leadership should evaluate whether the relationship can genuinely be rebuilt.
Counteroffers Are Strategic Decisions
There are situations where making a counteroffer makes excellent business sense.
A key client relationship may be at risk.
The attorney may have unique institutional knowledge.
The reasons for leaving may be both legitimate and fixable.
But the decision should be based on long-term strategy, not emotion, urgency, or fear of losing someone.
The best retention strategy is not a well-crafted counteroffer. It is creating an environment where your best attorneys never feel they have to look elsewhere in the first place.
The strongest law firms do not simply react when attorneys resign. They build cultures where those conversations happen long before resignation letters are written.
If your firm is evaluating attorney retention, succession planning, strategic growth, or lateral hiring, taking a proactive approach often produces better results than reacting after a resignation.
At On Balance Search Consultants, we work with law firm leaders on recruiting, retention, succession planning, partner transitions, and long-term growth strategies. Sometimes the most valuable conversation isn’t about replacing an attorney. It’s about understanding what keeps your best people engaged before they begin looking elsewhere.
The strongest firms don’t wait for resignation letters to discover what matters most to their attorneys.
Who’s Driving Your Career?™
Shari Davidson, CPC President | On Balance Search Consultants LLC
Strategic Advisor to Law Firm Leaders | Boutique Legal Recruiter | Partner & Rainmaker Transitions | Succession Planning & Growth Strategy
Shari@OnBalanceSearch.com 516.731.3400
Confidential searches for law firms and attorneys nationwide.
Sources
- Law firm turnover: Strategies to combat the 50% attorney retention challenge. Embroker (April 2025).
- Retention in Legal Services: Attorney Turnover. Retensa.
- Associates leaving law firms within 5 years reaches all-time high, NALP Foundation reports. National Jurist (March 2026).
- The Great (Law Firm) Resignation: Why You Shouldn’t Take a Counter-Offer (Part II). Lateral Link.
- What Causes Associates to Leave Law Firms? BCGSearch.com (January 2026).
- Beating the Retention Crisis: How to Prevent Associate Turnover. Lawmatics (May 2023).
- New Legal Resourcing Report Reveals Costly Associate Attrition and Industry Withdrawal Rates. BigHand (August 2025).
- Statistics Reveal a Surprising Truth about Counteroffers. Momentum Search Partners (December 2024).
Disclaimer
The information contained in this article is intended for general informational purposes only and should not be construed as legal, financial, or business advice. Every law firm and attorney situation is unique. Readers should consult with appropriate professional advisors before making employment, compensation, or business decisions.
