The 2025 State of the U.S. Legal Market Report by Thomson Reuters and Georgetown Law highlights a legal industry entering its most significant performance shift since the post-2008 recovery.
Key Findings HR/PD Leaders Must Know
- Demand growth is flattening, especially in transactional work
- Realization is tightening despite higher billing rates
- Hybrid work is stabilizing but expectation clarity is not
- Associate attrition returned above 20%
- Generative AI adoption is accelerating, reshaping core competencies
These trends expose a clear problem:
Traditional review systems no longer match the way legal work is delivered or measured in 2025.
Why Traditional Review Models No Longer Work
Most firms still rely on:
- Annual reviews
- Memory-based partner ratings
- Vague comments (“needs to step up”)
- Limited transparency
- Minimal upward feedback
But 2025 realities demand better.
A. The Work Has Changed
Lawyers now operate within:
- AI-driven drafting (Litera, CoCounsel)
- Workflow orchestration (Aderant, vi by Aderant)
- Multi-office collaboration
- Hybrid teams
Yet many firms still evaluate using legacy criteria tied to hours, attitude, and partner recall.
For a deeper breakdown of meaningful metrics, see:
4 feedback metrics that drive small firm growth
B. The Workforce Has Changed
NALP data shows:
- 71% of Gen Z associates expect monthly feedback
- 50% cite lack of clarity as a core burnout driver
Annual reviews simply cannot meet the psychological needs of today's workforce.
For a broader explanation of how unclear systems fuel burnout, read:
Prevent burnout in small law firms with better feedback systems
C. The Culture Has Changed
Partners expect consistent performance.
Associates expect fair, transparent growth paths.
Clients expect efficiency and value.
A modern review system must deliver all three, which requires structure.
For how upward reviews improve leadership clarity, see:
Why law firm leaders need upward reviews in 2025
3. What the Thomson Reuters Data Means for Performance Management
Below is how the TR findings translate into HR/PD action.
Finding #1: Flat demand → higher productivity expectations
Partners need predictable performance, which requires behavior-based criteria, not subjective assessments.
Explore how these metrics actually work:
4 feedback metrics that drive small firm growth
Finding #2: Attrition rising → unclear expectations drive exits
Firms cannot afford to lose associates over preventable clarity gaps.
For the root causes of attrition and what to fix:
Why associates leave law firms within their first four years
Finding #3: AI reshaping workflows → new competencies must be measured
Lawyers now need to demonstrate:
- Tech fluency
- AI readiness
- Collaboration across hybrid teams
- Integrated client service
Traditional criteria ignore all of this.
To understand how firms can measure meaningful KPIs, read:
How to track KPIs that predict long-term growth in law firms
Finding #4: Client pressure increasing → alignment between strategy and talent is critical
Evaluations must now incorporate:
- Project management
- Client communication
- Matter readiness
- Risk spotting
- Cross-practice coordination
For how culture and performance intersect:
Prevent burnout in small law firms with better feedback systems
4. How HR/PD Leaders Should Update Their Review Systems in 2025
SRA’s 30-year field experience shows that modern systems rely on six pillars.
Step 1: Audit Your Existing Review Model
Questions to start with:
- Are criteria behavior-based or personality-based?
- Do associates understand expectations?
- Are partners calibrated?
- Does upward feedback feel safe?
For how upward feedback builds trust:
How small law firms can build trust with confidential upward feedback
Step 2: Build Competency Models for 2025 Skills
Modern competencies include:
- AI-assisted execution
- Hybrid collaboration
- Client communication
- Delegation quality
- Leadership & mentorship
For what firms should measure:
4 feedback metrics that drive small firm growth
Step 3: Move Toward Continuous Feedback
Quarterly and post-matter reflections reduce attrition and improve engagement.
For how this reduces burnout:
Prevent burnout in small law firms with better feedback systems
Step 4: Add Partner Calibration Panels
Calibration eliminates:
- Bias
- Score variance
- Development blind spots
For a benchmark of how tools compare:
Top legal performance management tools for law firms in 2025
Step 5: Measure Culture, Not Just Output
Modern talent frameworks must include:
- Respect
- Inclusion behaviors
- Delegation quality
- Communication habits
For how upward feedback reveals culture gaps:
How small law firms can build trust with confidential upward feedback
Step 6: Link Development to Business Strategy
This is where many firms fail—evaluations must drive both individual and firm growth.
To create meaningful talent dashboards:
How to create impactful performance review reports for attorneys
5. Why SRA Outperforms Generic Tools (Litera, PerformYard, vi by Aderant)
Generic HR tools fail to capture legal-specific needs.
SRA is built exclusively for law firms.
See the detailed comparison here:
Top legal performance management tools for law firms in 2025
The 2025 Thomson Reuters report shows a legal market facing demand pressure, rising attrition, and increasing client expectations. Traditional review systems—annual, subjective, inconsistent—cannot meet these needs.
Modern systems require behavior-based rubrics, real-time feedback, partner calibration, and cultural metrics.
SRA provides the legal-specific frameworks, tools, and consulting expertise to help firms adapt.
Transform Your Firm’s Review System
If your firm is ready to move beyond outdated reviews and build a future-ready performance model, SRA can help.
Contact SRA for a consultation
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