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Report: Talent War Heating Up to 'Boiling Point'

By Andrew Maloney
December 01, 2021

Law firms are paying more for talent than ever before. But like other industries that've been hit by a so-called "Great Resignation," they're also hemorrhaging it like never before, and the result is a diminished return on investment that could reach a "boiling point" in the near future, according to the latest Thomson Reuters Peer Monitor Index report.

Direct expenses grew by 7.2% during the third quarter of 2021, driven mainly by increases in associate compensation relative to Q3 last year. But the report, which aggregates multiple factors to produce a score of law firm profitability, also clocked law firm turnover at 13.8% over the last 12 months.

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