After several years of unprecedented movement across the legal profession, there is finally a sign that the market is settling.
But do not mistake stability for ease.
While staff turnover in the legal industry has levelled out, firms across Australia are still facing significant challenges in attracting and retaining top talent. For both employers and legal professionals, the battle for talent remains very real.
Turnover Has Stabilised – But Not Returned to Normal
Recent data from the ALPMA/Elias Recruitment 2026 Australian Legal Industry HR Issues and Salary Survey highlights staff turnover sitting at 23%, unchanged from the previous year. That is a welcome improvement from the 27% peak recorded in 2023, but it still means almost one in four legal employees changed jobs or left their firm during the year.
What is perhaps most interesting is that retention challenges are no longer concentrated in one part of the market.
Small firms reported the highest turnover at 26%, while medium firms recorded the lowest at 21%. Large firms sat at 23%, suggesting talent movement is now a challenge being felt across the profession, regardless of firm size.
The Biggest Reason People Leave? Another Firm Asked Them
For all the discussion around culture, flexibility and wellbeing, the biggest driver of turnover remains surprisingly straightforward.
According to the survey, the most commonly cited reason employees leave is being approached by another firm. 50% of firms identify external recruitment activity as a key cause of departures.
In large firms, that figure rises to 85%.
The message is clear: many employees are not actively looking to leave—they are simply being presented with more attractive opportunities elsewhere.
Salary Still Matters
Unsurprisingly, remuneration remains a major factor in employee decision-making.
Around one-third of firms cited compensation and benefits as a key reason employees leave, with the impact particularly pronounced among larger firms where salary competition is often fiercest.
But money is not the whole story.
ALPMA’s findings also highlight:
- 26% employees leave the legal industry altogether.
- 20% citing misalignment with firm direction.
- 18% limited career progression opportunities.
- 12% move to in-house legal roles.
These figures suggest retention is not just about pay packets. Career pathways, leadership, purpose and long-term sustainability all continue to influence career decisions.
Retention Has Become a Business Strategy
Perhaps the most telling statistic is that 73% of firms now rate retention and talent management as a high or critical priority, rising to 100% among large firms.
That should not come as a surprise.
Replacing talented lawyers and support staff is expensive, disruptive and increasingly difficult in a competitive market. Hiring the wrong person is even more costly.
The firms having the most success are focusing on more than just recruitment. They are investing in career progression, leadership development, flexibility, wellbeing and creating environments where people can see a future and align with the firm’s values and strategy.
The Bottom Line
The legal market may have moved beyond the post-pandemic talent frenzy, but retention remains one of the profession’s defining challenges.
Turnover may have stabilised, yet at 23% it is still well above historical norms, and firms continue to compete fiercely for great people.
The firms that will thrive over the next few years will not simply be the ones that attract talent.
They will be the ones who give people compelling reasons to stay. The victors in the war for talent will be those developing a pipeline of talent ready for when a new role emerges.
This is why we have developed the Legal Talent Pool to showcase quality lawyers who are ready to move.
Source: ALPMA/Elias Recruitment 2026 Australian Legal Industry HR Issues and Salary Survey