More Israeli Law Firms Begin Offering Employee Training Funds Amid Talent Competition
For years, employee training funds were largely absent in Israeli law firms despite being a significant benefit for salaried workers. A survey by Codex, a legal recruitment firm, found that less than 30% of lawyers in law firms are eligible for such funds. In contrast, data from Hilen Value, a human resources software provider, shows that over 90% of employees earning above average salaries in other sectors receive training funds.
Recently, several large law firms have started offering training funds to their lawyers. Gornitzky has provided this benefit since the end of the first year of employment for about five years, followed by Goldfarb from the end of the second year. Meitar announced over a year and a half ago that it grants training funds to all employees after one year of seniority, including interns who complete their internship and remain at the firm. More recently, Shibolet Horowitz introduced the benefit from the end of the second year starting January, and Herzog announced in December that it would provide training funds from the end of the first year. Nashitz Brandes takes a different approach, allowing employees to contribute part of their salary to the fund or keep it as net salary. Industry insiders expect more large firms to join this trend.
Codex’s business development VP, Atara Cohen Ben Shimon, noted an increase in training fund recipients among young lawyers with 1-3 years’ experience in firms with over 150 lawyers, rising from about 25% in 2024 to 36% recently. This suggests that large firms are responding to competition for talent earlier in lawyers’ careers. A senior legal sector source explained that training funds are used to attract quality employees, either through bonuses or this benefit.
Despite this shift, training funds remain uncommon in law firms overall. Codex’s salary survey shows that while nearly 82-83% of legal advisors in companies receive training funds, only about 27% of lawyers in law firms do. Cohen Ben Shimon explained that legal advisors in companies follow corporate compensation models, while law firms maintain a more conservative pay structure focused on salary and bonuses.
Compared to other sectors, the legal field lags behind. Hilen data shows 95% of high-tech workers, 92% in healthcare, and 87% in government receive training funds. Industry figures note that total compensation packages must be considered, as some law firms prefer bonuses or grants over training funds. Others highlight that salaries in law firms are generally higher than in sectors like healthcare or public prosecution, and that the high-tech sector operates under very different conditions.
Historically, law firms avoided training funds because lawyers earn relatively high salaries and reach partner status early, where compensation is substantial. One industry veteran said firms preferred to increase gross salary rather than offer training funds. However, this is changing, with firms now offering retention bonuses worth tens of thousands of shekels to reward employees who stay longer. This approach aims to invest more in employees who remain beyond the first year or two, rather than those who leave quickly.
