Law firms tap younger lot for partner profiles as attrition rises

Changing partner dynamics

An urgent need to plug attrition, promote younger talent and find those who can work on new-age policies amid rising complexity are driving the change, top lawyers said.

“Over the past decade, we have seen a clear shift in the age profile of partners. Previously, the average age for promotion to partner was in the mid-to-late 30s. Today, with fast-tracked career paths, exceptional legal professionals can achieve partnership in their early-mid 30s", Shweta Shroff Chopra, partner in competition law at Shardul Amarchand Mangaldas & Co said.

The last couple of years have seen many practice heads moving to rivals with entire teams of partners, leaving a gaping hole in various practices. Top law firms such as Indus Law, Cyril Amarchand Mangaldas, JSA Advocates & Solicitors, Khaitan & Co, Trilegal, Shardul Amarchand Mangaldas & Co, and even boutique firms built by erstwhile senior partners of these law firms, have seen a spike in attrition.

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A partner can be an equity partner or a fixed income partner. The former takes a share of the firm's revenue and is invested in the company, while the latter draws a set compensation with variable payouts.

New talent at the helm

Chopra said that newer areas like data privacy, AI, Internet of Things and blockchain require a deep understanding of regulatory and policy framework and companies need more hands on the deck.

"The current average age of members elevated to partnership is 31 years. It was 37 years about 5 to 10 years ago," said Amar Sinhji, director, human resources at Khaitan & Co., which specializes in corporate and commercial litigation. The firm is also offering learning and development opportunities to younger partners to cope better.

Law firms are coming up with training workshops exposure to complex cases, ensuring that associates both build legal expertise and business acumen. Young lawyers are given early opportunities to work closely with the clients and develop a deep understanding of the legal and commercial landscape.

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Avimukt Dar, founding partner at IndusLaw said his firm is allowing younger partners "greater client handling", noting when younger partners are recruited, senior partners of the practice are consulted.

Balanand Menon, partner at Vahura, a legal search and consultancy firm, said one of the primary reasons for such young lawyers to be promoted is that they understand the culture of the law firms well. “Most law firms do not want a leadership structure that is too top-heavy and these promotions are purely based on the merit of these young lawyers. These young partners not only possess the necessary competence, but also meet the financial metric requirements set by top law firms," Menon said.

"The kind of boom India has seen in the last decade in terms of foreign investments, coupled with newer regulations, has led to law firms promoting younger lawyers as Partners," he added.

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"The high volume of deals has accelerated lawyers' skill development, allowing them to gain expertise more quickly than before. Additionally, with newer areas of law such as data privacy, insolvency and bankruptcy code (IBC), and others emerging, there's a need for specialized expertise. Now, if there is a subject matter expert who's able to delve deep into these areas, build expertise, and dictate a competitive pricing point with clients, it helps firms encourage the promotion of young lawyers to partners," Menon of Vahura said.