Why Mental Wellness Is a Smart Business Investment for Law Firms
Originally published by the American Bar Association - Law Practice Today on Feb. 4, 2026 (republished with permission)
New Data on Burnout, Productivity, and the Cost of Inaction
The legal profession has long accepted burnout as a cost of doing business. Long hours, high stakes, demanding clients, and relentless performance pressure are viewed as part of the job. But new data from Gallup’s State of the Global Workplace 2025 Report makes clear that burnout is no longer just a human issue—it is a material business risk. The Global Workplace Report is the world’s largest ongoing study of the employee experience.
Across industries and regions, employee engagement and well-being are declining, with managers experiencing the sharpest drop. For law firms, where partners and senior attorneys function as both revenue generators and people managers, this trend should serve as a warning: Disengaged leaders drive disengaged teams, lower productivity, and higher attrition—all of which directly affect profitability.
A Global Engagement Crisis with Direct Implications for Law Firms
Gallup reports that global employee engagement fell from 23% to 21% in 2024, a decline comparable to the drop seen during the height of the COVID-19 lockdowns. Even more concerning, manager engagement dropped from 30% to 27%, while individual contributor engagement remained flat.
Given that partners are primarily responsible for team engagement, we see manager burnout cascade downward. Associates disengage, collaboration suffers, mistakes increase, and retention declines.
Only 33% of employees worldwide are thriving in life, while 58% reported to be struggling. Engaged employees are far more likely to be thriving, while disengaged employees experience higher levels of stress and burnout.
Gallup estimates that lost productivity from declining engagement cost the global economy $438 billion last year alone. In law firms, this shows up in unbillable hours, write-offs, missed deadlines, client dissatisfaction, and the high cost of replacing attorneys.
In the legal field, burnout leads to attrition, lost productivity, client risk, and weakened leadership pipelines. The cost of replacing an attorney quickly adds up, considering the lost billable time. In addition to the billable hours lost from the departing associate, there are the hours spent recruiting candidates and training new employees.
Why Counseling and Coaching Work—and Why They Pay Off
Counseling provides confidential support for anxiety, burnout, and work-life conflict. Coaching builds leadership, identifies goals, develops skills, and drives sustainable performance. Together, they reduce absenteeism, improve engagement, strengthen leadership, and increase retention.
Investing in mental wellness is not about lowering standards. It is about protecting the people who generate revenue, strengthening leadership capacity, and ensuring long-term firm stability.
When employees feel valued, supported, and psychologically safe, they are more engaged, productive, creative, and committed. In law firms—known for long hours, chronic stress, and elevated risks of burnout, anxiety, and disengagement—cultivating a strong sense of belonging can reduce psychological strain, emotional exhaustion, and detachment, all of which directly affect performance, judgment, and client service. Given that employees are the law firms’ most valuable asset, fostering a strong sense of belonging is critical to performance, retention, and long-term success. In business terms, belonging is not a “soft” benefit; it is a driver of efficiency, risk management, and talent retention.
Mental Wellness Is No Longer a Perk; It Is a Competitive Advantage
Research shows that organizations that invest in employee well-being consistently outperform competitors, while those that neglect it face higher turnover, burnout, and disengagement.
Mental wellness initiatives, such as counseling and coaching, play a central role in fostering a sense of belonging and engagement. Counseling supports employees’ emotional and psychological well-being, helping them manage stress, anxiety, and work-related pressures. This leads to improved focus, resilience, and job satisfaction—critical factors in professions like law, where sustained mental clarity and ethical decision-making are essential. Coaching, on the other hand, strengthens professional growth, autonomy, and purpose. By helping employees align personal goals with organizational objectives, coaching builds trust, ownership, and long-term commitment to the firm.
Gallup’s research shows that manager training and coaching can cut disengagement in half, improve performance by 20–28%, and increase manager well-being by up to 32%. Results were measured 9 to 18 months after training, suggesting that the influence of coaching and counseling can have a lasting effect.
Studies show that organizations offering coaching, mentoring, open communication, and wellness programs experience higher engagement, lower turnover, and stronger loyalty. These outcomes translate directly into financial benefits, especially for law firms: reduced costs associated with attrition, stronger leadership pipelines, improved collaboration, and more consistent client outcomes. Furthermore, visible investment in mental wellness signals that the firm values its people, reinforcing organizational support and enhancing employer reputation in a competitive talent market.
By investing in mental wellness—through counseling, coaching, and supportive workplace practices—businesses can address the disengagement reported in the Gallup study and prevent the revenue loss that can result from such disengagement.
