Raises Without Retention: When More Money Isn’t Enough

For years, law firms have treated compensation as the main tool for retaining marketing and business development talent. The logic seems sound at first glance: if people are leaving, raise their pay. If recruitment takes too long, push salaries higher. If competitors lift their pay bands, match or exceed them.

Yet year after year, turnover remains high across many levels. Salary bands rise, but retention barely moves. Firms still face long vacancy periods, stretched teams, and steady churn. This pattern shows something important about today’s workforce: money helps, but money alone does not keep people.

The data confirms this pattern. Across multiple cycles of KHS People’s salary findings, respondents consistently report that higher pay is appreciated, yet it does not address the reasons people leave. Pay is part of the equation, but the drivers behind real loyalty sit elsewhere—inside day-to-day experience, team culture, leadership access, and the feeling that one’s work contributes to results that matter.

This gap between compensation and retention has grown more visible in recent years. Raises are now common due to market pressure, but many professionals still describe the same pain points they had before the raise. When the root causes go untouched, turnover continues, even at higher pay levels.

Below, we explore why this happens, what the data shows, and what leaders can do to change the pattern.

Why Raises Alone Fall Short

Raises fix one thing: market rate alignment. They do not fix career clarity. They do not fix team culture. They do not fix burnout, uneven workloads, or the feeling of being overlooked. They certainly do not fix weak communication between management and staff.

When firms assume pay is the answer, they miss the true reasons people exit:

1. Lack of visible career direction

Professionals want to see a path forward. When promotions are slow or unclear, pay increases feel like temporary pressure valves instead of real steps in a long-term plan.

2. Gaps in leadership support

Many departures are tied to relationships with supervisors, not pay bands. People stay where leadership is steady, present, and responsive.

3. Workload strain

If a raise is paired with heavier demands or no shift in expectations, it lands poorly. People read it as compensation for a future burden rather than recognition of talent.

4. Lack of trust

Professionals stay where trust is present—trust in leadership, trust in communication, and trust where promises match reality.

5. Insufficient autonomy

High performers want room to make decisions, voice ideas, and influence outcomes. Tight control or constant rework from above erodes commitment.

Raises don’t touch any of these areas. They can soften frustration, but they cannot repair the source of it.

What the Data Tells Us

Across the 2025 Curated Salary Data and Intelligence report, several clear patterns emerge. Working arrangements are now taking the lead across nearly every level of the profession. In 2024, salary ranked as the top deciding factor in a hypothetical job offer. In 2025, working arrangements moved into the number one position for most roles, with total compensation & benefits second and salary third. Hybrid schedules now account for approximately 78% of all arrangements, which is an increase from 73% the prior year. This reflects a growing expectation for flexibility and a strong signal that working preferences are shaping retention more directly than before. 

Management Levels and Up

Professionals from Manager through Senior Director show a different but related pattern.

1. Compensation matters, but trust and autonomy matter more.

Across these roles, pay is a factor in staying, but not the factor. The strongest retention signals are tied to autonomy, trust, and the ability to manage responsibilities without unnecessary oversight. Many respondents stated they would leave a higher paying role if it meant gaining more control over their working arrangement or environment. 

2. Leadership access and meaningful involvement drive retention.

Senior Directors and Directors rank culture alignment, leadership access, and involvement in strategic initiatives above salary. They stay when they feel heard, respected, and connected to firm leadership.

3. Working arrangements have become a top priority for decision making.

In 2025, working arrangements rose to the top deciding factor for Managers, Senior Managers, and Directors. Roles at these levels show some of the highest percentages of professionals who place hybrid or remote options at the top of their acceptance criteria for a hypothetical job offer. This reflects a rising expectation that leadership will trust professionals to deliver strong performance without rigid location requirements. 

The data shows a clear pattern. Across levels, people stay or leave based on trust, autonomy, and clarity. Working arrangements have become one of the clearest measurements of that trust. Compensation still matters, but it no longer carries the same power it once did. Flexibility continues to rise, and firms that respond to this shift are far better positioned to retain their strongest talent.

Pre-Manager Levels

Professionals at the Coordinator and Specialist levels consistently point to three themes.

1. Raises alone do not prevent turnover.

Many Pre-Managers who received raises in the past 18 to 24 months still indicated interest in exploring new roles. Increased pay did not outweigh concerns about career clarity, workload fairness, or leadership access.

2. Growth, clarity, and stability carry more weight than salary.

Only 30 percent feel highly likely to reach their next career goal at their current firm, and 66 percent have thought about moving to a new firm within the past year. Many report that unclear promotion timelines or inconsistent communication about advancement are primary reasons for considering mobility.

3. Working arrangements are now a leading factor in career decisions.

Working arrangements rank among the top three deciding factors for Coordinators, Specialists, and Senior Specialists. Hybrid and flexible schedules are viewed as direct indicators of trust and support from leadership. When working preferences match firm requirements, Pre-Managers report higher levels of connection and support. 

Raises matter—but they are only one thread in a larger system. If the system around the raise is weak, the raise becomes a short-term patch.

Raises Without Retention in Practice

You’ve likely seen this scenario:

A high-performer expresses frustration or hints at exploring the market. Leadership responds with a salary bump to keep them. The person stays—temporarily. Within months, the same issues resurface. The raise did not solve the underlying tension, and soon the person re-enters the job market. This is not a failure of pay. It is a failure of structure.

When a raise arrives without changes in workload, direction, or communication, the raise feels like a transaction, not support. Retention requires an environment that reinforces commitment every day, not only during compensation cycles.

What Retains People Today

Through both data and lived experience across recruitment conversations, several themes consistently strengthen retention:

• Clear role expectations and an understanding of responsibility levels

• Supportive leadership that listens and adjusts when needed

• Opportunities for visibility with decision-makers

• Balanced workloads that allow for strong performance without burnout

• Regular communication around priorities, goals, and feedback

• Respect for personal time and boundaries

• A sense of progress, whether through skill growth, scope expansion, or team influence

Raises are welcomed. But these factors keep people rooted.

Self-Assessment Sections

Below are two short assessments tailored for (1) Management & Up and (2) Pre-Managers. Each includes actionable steps that leaders can use immediately.

Self-Assessment for Management & Up

These questions are designed to help leaders evaluate how well they support retention beyond salary adjustments.

1. Do I provide clear expectations about role priorities and success markers?

If team members often guess what matters most, they may feel disconnected or uncertain.

Takeaway: Share monthly or quarterly priorities in writing. Keep them simple, steady, and tied to outcomes that guide decisions.

2. Do my team members see a path forward that feels real, not vague?

People rarely leave when they see genuine movement ahead. They leave when progress feels stalled.

Takeaway: Map out a one-year and two-year projection for each person. Even small steps create momentum.

3. Do I check in about workload in a way that invites honesty?

People rarely volunteer workload concerns unless invited.

Takeaway: Replace “How’s your workload?” with “What should be removed to help you succeed this month?”

4. Do people have access to me outside structured meetings?

Access builds trust. Distance breaks it.

Takeaway: Keep one short weekly touch point. Even 10 minutes strengthens connection and reduces misunderstandings.

5. Do I provide recognition for steady work, not only standout work?

Many teams feel unseen despite ongoing contributions.

Takeaway: Send one written acknowledgment each week to a team member. Short, specific, sincere.

Self-Assessment for Pre-Managers

These questions help early-career and mid-level professionals assess whether they feel supported and able to grow—and whether compensation truly reflects their experience.

1. Do I understand what my firm expects from me this quarter?

If goals are unclear, you may feel stuck even if pay rises.

Takeaway: Ask your supervisor for a short list of top priorities. Clarity brings direction.

2. Do I see how my work connects to key outcomes at the firm?

Connection builds purpose.

Takeaway: Request examples of how your work supports broader objectives. This also opens a discussion around impact.

3. Do I receive feedback in a steady, predictable way?

Feedback that arrives rarely or only during reviews signals an unclear growth path.

Takeaway: Ask for short, monthly feedback conversations. Keep them casual and focused on practical steps.

4. Do I feel that I can ask questions without judgment?

Psychological safety influences retention more than pay for many early-career professionals.

Takeaway: If the environment feels closed, ask your supervisor to set aside a brief “ask anything” window each month.

5. Do I have at least one stretch opportunity that helps me grow?

Growth binds people to their roles. Lack of growth sends them searching.

Takeaway: Identify one area you want to build skill in and request a small project tied to it.

KHS Final Thoughts

Raises matter. They should remain part of any competitive compensation system. Yet raises without support, direction, and leadership presence fall short. Professionals across all levels are clear about what inspires loyalty: clarity, trust, growth, and connection.

If firms want real retention, they must shift from a single-lever approach to a broader focus on the daily experience of their teams. Money brings someone in the door. The environment keeps them there.

Kate Harry Shipham
Founder & CEO
KHS People
kate@khspeople.com