Leading UK firms post reduced retention figures as continued uncertainty prompts cautious recruitment

Trainee retention rates across the bulk of the UK's largest law firms have fallen this year, with research by Legal Week finding the average rate has dropped by almost 10% on last spring's qualifying intake.

At the top 20 UK firms with a spring intake, an average of 76.5% of newly qualified (NQ) lawyers have been kept on this year, 9% down on the equivalent intake last year and 3% lower than last autumn's qualifying round.

Of 441 trainees at the firms to have released details to date, 343 have been kept on – down on the total of 358 of 422 NQs kept on across the same group in spring 2012. 

Clifford Chance was the only firm in the group to buck the downward trend after seeing retention figures for spring 2013 grow to 82% after keeping on 54 of 66 NQs, up from a retention rate of 76% recorded at the same point last year, and 77% in autumn 2012. 

The magic circle firm recently confirmed that it is reducing the target number of graduate trainees across its 2015 intakes, with the new annual figure set at 100, down from a target of 120 in recent years.

The average retention rate of 81% across the five magic circle firms is slightly higher than the top 20 average, although down on the group's average of 86% recorded last spring. 

Allen & Overy saw the largest decrease of the magic circle firms, with retention down from 89% to 70% this spring.

Other firms to have posted reduced retention rates in the latest qualifying round include Berwin Leighton Paisner (BLP), which has seen rates drop from 88% last spring – when it took on 15 of its 17-strong intake – to 68% this year after 15 out of 22 NQs took up a position at the firm.

BLP graduate recruitment and trainee manager Claire England said: "Our retention rate has fallen in line with the majority of other law firms as we all operate in a challenging market. We make every effort to recruit the best future legal talent and to hire in line with our anticipated business need. 

"We invest a lot in our trainees, so we are keen to keep on as many as possible to fit with our strategy. But at the same time, we are not distracted by the pursuit of high retention rates."

CMS Cameron McKenna also saw results dip significantly from 81% last year to 68% this year, with 19 out of 28 trainees taking a job at the firm. 

DLA Piper, Eversheds, Clyde & Co, Bird & Bird and Irwin Mitchell do not have spring NQ intakes, while Pinsent Masons and Simmons & Simmons are set to confirm their spring 2013 retention figures next week. 

The news comes after research by Chambers Student Guide found that retention rates at UK firms dipped last year for the first time since the height of the downturn. Of 2,620 trainees across 123 firms during 2012, 2,074 were kept on, equating to 79.1% – down on the 2011 figure of 80.5%.

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Spring 2013 retention rates – magic circle

Clifford Chance: 54 of 66 NQs kept on – 82%

Linklaters: 49 of 59 NQs kept on – 83%

Allen & Overy: 37 of 53 NQs kept on – 70%

Freshfields Bruckhaus Deringer: 39 of 46 NQs kept on – 85%

Slaughter and May: 37 of 43 NQs kept on – 86%