Why a short-term outlook is bad for your law firm's business...

Read almost any law firm / legal industry update at the moment and it's mostly going to be all doom and gloom.

• Lawyer realization rates are down (86% is looking good these days!).
• Lock-up days are on the increase (over 180 days according to some reports)
• Trainee contracts are not getting picked up.
• Back-office layoffs are on the rise.
• Profit per equity partner (PEP) is down.

But with the thanks to Clio's '2023 Legal Trends Report' we are able to put some perspective on these trends.

Most notably, compared to 2016 - on average - legal professionals are:

• Logging 35% more billable hours
• Earning 158% more for their firms (72% after adjusting for changes in hourly rates)

Think about that for a second. Covid. Economic downturn. In-house Counsel having more say about who can be used on matters...

...and yet, a lawyer in 2022 was earning 158% more for its firm than the equivalent (partner/senior associate of today) was earning in 2016.

Maybe we should cut these junior lawyers some slack.

Feel free to DM/email us if you want to have a chat about how we can help you make your firm' lawyers more productive.