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The partner's remain intact irrespective of their flaws...but the juniors gets replaced every 1 year. An associate that I knew got displaced like this.... recently...so from what I have heard...they have new faces as an associate pool every 2nd year.
There can also be situations where the WLB is good and the team is great, but they still do this. Even if a junior wants to stay, they may not necessarily have a problem with it, but they will give such a low appraisal that you eventually look at yourself, compare your salary with your peers at other law firms, and realise how much you are financially falling behind. At that point, you may want to leave anyway.
Some may argue that these firms cannot provide equity because of their small scale, which I agree with to some extent. However, the above factor is the major one. Also, whenever you apply to such a firm, do check the managing partner’s history and whether the firm has actually grown, not just in terms of the amount of work it does, but also in terms of expansion of teams and how long it took to achieve that growth.
While I know we call a few family-run Tier 1 law firms “lala” firms, those are far better in terms of providing other things, even if they do not provide WLB (as most people say). The real “lala” firms are these kinds of firms, majorly run by one family, with little to no meaningful expansion over time.