Magic Circle 'wasted' £10m on trainees last year
The Lawyer shows that trainee attrition cost magic circle law firms more than £10m between them last year.
The report looks at how much each firm invested in training, including the LPC course fee, maintenance grants and first and second-year salaries and then determines how many trainees were retained by the firm to determine the level of ‘waste’ in the trainee program.
According to The Lawyer, A&O wasted £2.8m of the £11.1m it spent in 2012/13, because 28 of its 111 trainees were not retained.
Clifford Chance and Linklaters both suffered wastage of more than £2m each, while Slaughter and May at £1.2m lost the least out of the quintet after seeing only 12 of its 91 trainees leave.
An A&O spokesperson dismissed the claim that the sum was wasted, saying: “When you factor in revenue generated by the trainees during their contract we don’t make a loss on our trainee group. But more importantly this a crucial investment in the future of the business. While retention rates may rise and fall with the market, there will always be a need to attract and retain the most talented people and that’s an investment well worth making.”