Trainee retention at UK top 30 falls below 80%

Retention rate falls 8% on 2009; Simmons records 69% rate

Trainee retention rates across the UK's top 30 law firms have been hit by the ongoing economic downturn, with most firms with March 2010 intakes retaining under 80% of their newly-qualified lawyers.

Legal Week research shows the average retention rate for March 2010 stood at 75%, comparing acceptances with the number of qualifiers, a drop of nearly 10% on the 83% retention rate reported in March 2009.

The figure, which is based on final numbers from the 21 top 30 firms operating both March and September trainee intakes, rises to 79% when looking at the number of accepted places compared with the number of lawyers applying to be kept on.

Figures were broadly similar across leading City firms and national players, with the top 10 City firms seeing a final average retention rate of 75%, with 306 of 407 lawyers qualifying accepting places with the firms.

At the five national law firms with a March 2010 intake, retention stood at 76% on average - the same as in March 2009.

Simmons & Simmons bucked the trend for declining retention after keeping on 69% of its March 2010 qualifiers compared with 53% of its March 2009 intake. However, both figures are well below its peer-group average.

Pinsent Masons also came in below average, keeping on nine of its 14 March 2010 qualifiers, giving it a retention rate of 64%. This rises to 82% considering only the 11 applying for positions.

Nabarro and Wragge & Co saw the highest retention rates across the top 30 for March 2010 at 86%. Other firms within the top 30 with new retention figures include Addleshaw Goddard, which is keeping on 89% of its March 2010 intake and 100% of those applying, and Macfarlanes, which is retaining 67% of the intake.

Linklaters, Freshfields Bruckhaus Deringer and Clifford Chance (CC) all saw retention dip between March 2009 and 2010, with final retention figures standing at 73% at Linklaters, 80% at Freshfields and 70% at CC. Allen & Overy dipped from 89% to 83%

Linklaters trainee development partner Simon Firth told Legal Week: "The results are due to the economic downturn. The attrition rate has gone down and we have to align our recruitment numbers against our forecast of the number of people who we predict will leave each year, which is less than normal."

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