A quick summary:
Law firms are growing, digitising, and adapting to new client demands, yet people-related challenges persist. The latest benchmarks make one thing clear: firms that tackle these issues with deliberate, data-driven strategies will not only retain talent but gain a real competitive edge. Below are four pressing pain points - and practical approaches that go beyond generic advice.
1. Burnout - a systemic risk with real consequences
Burnout isn’t a personal failing; it’s a structural issue. According to our 2026 law firm insights, 72% of UK lawyers reported experiencing burnout in the last year, with junior staff particularly affected when working remotely. Absence rates, declining performance, and disengagement aren’t anecdotal - they’re measurable and costly.
What works:
- Move beyond generic perks to benefits that directly support mental health and resilience - preventative health, stress reduction programmes, sleep and recovery tools.
- Build wellbeing into everyday workflows, not just optional HR programmes. For example, structured “no meeting” periods or mandatory break policies normalise recovery.
- Measure outcomes, not participation. Track reductions in absenteeism, improvements in productivity, and qualitative wellbeing feedback to ensure initiatives truly move the needle.
2. Retention and engagement - more than ‘perks’
Retention continues to be one of the most significant people risks for law firms. The costs of turnover extend far beyond recruitment - knowledge loss, client disruption and slower capability building all reduce firm performance and morale. It’s estimated that losing an associate costs £500k on average.
Our research shows that firms with wellbeing‑centric support see measurable improvements in retention, with a considerable percentage of employees reporting they’re more likely to stay when benefits genuinely support their health and career.
Actionable steps:
- Use behavioural data (what employees actually use, not just what they say in surveys) to shape benefits and development programmes.
- Personalise support: junior lawyers, mid-level associates, and partners have different motivators; engagement initiatives should reflect that.
- Tie engagement to strategic KPIs - retention, promotion rates, client outcomes - instead of treating it as an HR checkbox.
3. Hybrid working - a real opportunity if managed intentionally
Hybrid work isn’t just a convenience; it can be a strategic advantage - but only if the risks are managed. Fragmented communication, weaker learning for juniors, and culture drift are common pitfalls. To make hybrid work a competitive advantage, firms must tackle its risks head-on. Clear expectations and structured team rhythms keep communication strong and everyone visible. Thoughtful use of tools ensures learning and mentoring remain effective for junior staff, no matter where they sit. And by designing social and professional experiences intentionally, firms keep culture alive and connected across remote and in-office teams. When done right, hybrid working doesn’t dilute performance - it amplifies it.
How to get it right:
- Define rhythms and expectations: clear schedules, meeting protocols, and accountability structures keep teams connected.
- Leverage tech strategically: ensure remote participants can access mentoring, observe senior lawyers, and participate fully.
- Design culture intentionally: integrate social moments, learning sessions, and cross-team collaboration into hybrid workflows. Done right, hybrid work amplifies performance rather than diluting it.
4. Culture and performance - the invisible driver of success
Culture isn’t optional; it drives retention, engagement, and client outcomes. Poor people management, unclear expectations, and weak psychological safety create measurable risks. In law, where performance is tied to productivity and client results, culture becomes the invisible multiplier of success - or failure.
Practical levers:
- Reinforce values through visible behaviours, leadership modelling, and recognition programmes.
- Prioritise psychological safety: ensure teams feel safe to raise concerns, ask questions, and innovate.
- Treat culture as a measurable asset: collect feedback regularly, track engagement metrics, and iterate on initiatives that show real impact.
A strategic, data-led approach is no longer optional
2026 is a turning point. Firms that leverage behavioral insights, design benefits and hybrid policies that genuinely support their people, and actively measure culture will not just survive - they will thrive. Wellbeing, engagement, intentional hybrid work, and strong culture are no longer HR niceties; they are strategic levers that shape firm performance and competitiveness. Get in touch to discover the power of personalised, health led benefits!
