Over the past two months, I’ve had the opportunity to speak at both the College of Law Practice Management (COLPM) and Legal Week in New York about a critical issue that’s only growing in urgency: The Million Dollar Problem. It’s a concept that has struck a chord with every law firm leader I’ve spoken to - and for good reason.

According to a 2023 Law.com article authored by Clark Hill, the cost of losing a third-year associate falls between $651,000 and $951,000. Fast-forward to 2024, and that number now exceeds $1 million. And that’s before we consider the domino effect of turnover contagion, which can send the real cost soaring to $2–3 million.

But the real problem goes far deeper than dollars.

Why $1M Per Lawyer Is Just the Tip of the Iceberg

Attrition isn't just a talent issue - it’s a client risk issue. As COLPM Fellow and McDermott Will & Emery CHRO Kathleen Pearson put it (with permission to quote publicly): “Attrition isn't just a numbers issue - it deeply impacts trust, which is foundational to a law firm's culture and client relationships. Persistent turnover disrupts continuity, diminishing our ability to deliver consistent, exceptional service.”

Client feedback gathered by COLPM Fellow Nat Slavin of the Wicker Park Group echoes this sentiment. In conversations with general counsel, a recurring concern emerges: succession planning and continuity are failing - and it's eroding trust. Below are some of the quotes gathered from GCs:

• “You don’t tell me who my new contact is. You should ask me... You need to have a relationship beyond one partner - that’s problematic.”
• “The relationship partner went in-house, and they tried to tell us who our contact was... there was no discussion about [DEI] in mind.”
• “I’m paying to train these people on our business, and it’s a cost to me, so I wonder how you guys are dealing with that.”

The High Stakes of Poor Succession Planning

These stories paint a clear picture: law firm turnover is now a client issue. Losing associates isn’t just about replacing a billing machine - it’s about losing the trust, continuity, and institutional knowledge that GCs expect from long-term relationships. And when firms fail to communicate succession plans, DEI considerations, or continuity strategies, clients start looking elsewhere.

BigHand’s recent market research reveals just how systemic the problem is:

• Only 22% of firms say they have full visibility over who holds key client relationships.
• 67% of firms say they do not have an effective process in place for succession planning or relationship handover.

The warning signs are flashing. And firms that don’t act quickly will pay - not just financially, but reputationally.

The Solution: Data-Driven Talent and Business Development Strategies

At BigHand, we believe the only way forward is through data-driven decision making. That’s why we’ve developed tools that directly address the root causes of attrition, underdevelopment, and lack of succession planning:

• BigHand Impact Analytics (my baby!) helps firms surface equity issues and evaluate who is really getting access to high-value work - not just who’s billing hours.
• BigHand Resource Management ensures work is allocated fairly, efficiently, and with development in mind - helping firms manage utilization, retain talent, and support growth.
• BigHand’s Business Intelligence – Business Development Module allows you to track who owns key client relationships, how succession plans are performing, and where your firm may be exposed to continuity risk.

And here’s the stat that always hits hard: 77% of firms say they have lost a client or matter due to lack of internal continuity or relationship handover. That’s the million-dollar cost playing out in real life.

So in Summary: It’s Time to Treat Talent Like the Asset It Is

The million-dollar cost of attrition is real - but it’s not just about replacing talent. It’s about safeguarding your clients, your culture, and your competitive edge. Firms that act now to retain talent and build succession strategies rooted in data and transparency will be the ones that thrive in the years ahead.

If you’re still guessing at who owns client relationships, who’s most at risk of leaving, or who’s being overlooked for growth - then it’s time to dig into the data. Because the cost of not doing so? It’s more than a million dollars.

Feel free to reach out directly if you want to discuss this further – happy to help!