How Many Non-Billable Hours Do You Need As A Lawyer?

Today we tackle the tricky subject of how many non-billable hours you actually need as a lawyer.

Billable hours are your bread and butter, the work that keeps the lights on and the coffee flowing. Yet those pesky non-billable hours are unavoidable. But did you know that they’re also crucial to your long-term success – whether you’re a 2nd year attorney in Big Law or a 15+ year solo lawyer?

If you’re like most lawyers, you spend too little time doing non-billable work. It’s hard to fit them into your busy schedule.

I get it. The struggle to balance billable versus non-billable hours can make the most seasoned attorney want to run and hide. Sometimes, it feels impossible to fit in all the non-billable work you know you need to do. Often, it feels impossible to do both and maintain any semblance of work-life balance.

Which is why we are answering the question of how to effectively balance your billable vs. non-billable hours at each stage of your legal career.

By the end of this article, you will have a game plan for how to:

• Balance your non-billable hours, and
• Maximize your non-billable activities.

Let’s get started.

 

The Five Main Categories of Non-Billable Work

Not all non-billable hours are the same, and how much time you’ll want to devote to each category of non-billable work will change over the course of your career. Understanding these categories is your first step in mastering the non-billable game.

Non-billable hours can be broken down into five main categories.

 

 

1. Professional Development

This is the time you spend developing your own skills, knowledge and strengths. It includes:

• Continuing Legal Education (CLE). Nothing says “fun” like mandatory credits (right?).
• Skill development. Whether you’re sitting in on a deposition for learning purposes or attending a writing workshop for lawyers, this is time spent on cultivating and strengthening your legal skills.
• Learning curve time. Remember when you had to research for hours just to understand what you were drafting? Yep, that’s this category. This shouldn’t necessarily go away as you progress (because hopefully, you’re challenging yourself to do new things and expand your skills/knowledge).

Although you can’t bill for this time, it’s invaluable for becoming a masterful lawyer and business advisor to your clients. Don’t skimp on this piece (because you’d be skimping on yourself, too).

2. Business Development

The dreaded BD. But here’s a secret: it doesn’t have to be painful (and I mean that, even for all you introverts out there – like me). This category includes:

• Networking. You know, those events where you balance a drink, a plate of hors d’oeuvres, and try to remember names.
• Marketing activities. This includes all the things you can think of (and probably more), such as: writing articles, giving speeches, and maybe even dipping your toes into the world of social media.
• Conference attendance. Where you sit in a too cold (or hot) room while trying to keep your eyes open and learn the latest (not so earth shattering) tax law development.

This might not be something you do a lot of early in your legal career but that doesn’t mean you shouldn’t do any of it (more on that later). And note: you don’t need to be a natural salesperson to excel at this. It’s about building relationships and showcasing your expertise.

For more about how to excel at business development:

• Read 5 Client Development Myths (Every Lawyer Needs To Drop); and
• Listen to this Life & Law Podcast episode about putting together your Legal Marketing & Business Development Plan.

3. Pro Bono Work

We all know what pro bono work is. I like to think of it as your chance to be a real-life superhero (cape optional). This category is:

• Often required by firms, especially for associates.
• A great way to gain experience in new areas of law.
• Good for the soul and your professional reputation.

Bonus: Some firms count a certain number of pro bono hours towards your billable hours target (so, get clear around your firm’s policies on this).

4. Leadership and Mentoring

This is something you might not do much of in your early years. But as you climb the ladder, you’ll find yourself doing more of this. For this category, I include:

• Firm leadership roles. This could include roles such as practice group manager, recruiting partner or firm office manager.
• Committee work. This includes internal and external committees that put you in firm leadership or mentoring positions.
• Mentoring. This would include both formal mentoring relationships and informal ones, whether you’re passing on your hard-earned wisdom to bright-eyed associates or are mentoring a colleague on work-life balance issues.

Note that time spent on leadership and mentoring activities become increasingly important as you progress in your career. It’s not just good citizenship; it’s often an unwritten rule for advancement.

5. Administrative Tasks

This category is (unfortunately) the necessary evil that keeps your practice running, and includes:

• Billing and timekeeping. The joyous task of accounting for every six-minute increment of your life.
• File management. From opening files and drafting engagement letters to deciphering your own handwriting from client meetings.
• General office management. Everything from ordering supplies to figuring out why the copier is making that weird noise again.

The good news is that a lot of administrative tasks can (and probably should) be delegated and/or streamlined (which we’ll get to below).

Now it’s time to dive into how much time you should actually be spending on all of the above activities and how to make the most of every non-billable minute.

 

 

Your Ideal Time Allocation Between Billable Work vs. Non-Billable Work

Now that we’ve outlined the categories of non-billable work, let’s tackle the million-dollar question: How much time should you actually be spending on these activities?

While there’s no one-size-fits-all answer, here are some general guidelines to help you strike the right balance between billable vs. non-billable hours.

The 10-25% Rule of Thumb

As a general principle, most lawyers should aim to spend between 10% and 25% of their time on non-billable activities. This range allows for the necessary professional development, business growth, and administrative tasks without significantly impacting your billable hours target.

Where within this range should you be? That depends on the following factors:

• Career Stage
• Firm Expectations
• Practice Area
• Individual Career Goals

Let’s get more specific based on which stage of your career that you fall into.

Tailoring Your Non-Billable Hours to Your Career Stage

I like to break the stages of a private practice legal career into 4 main phases:

• The Junior Associate Stage: Your first 3 years of practice.
• The Mid-Level Stage: Years 4-7 of practice.
• The Senior Counsel/Junior Partner Stage: 8-12 years of experience, and includes non-equity partners, senior counsel and some of counsel.
• The Senior Partner Stage: Equity & other partners with a sizeable book of business.

Junior Associates (1-3 years of experience)

As a junior associate, you’re in drinking-from-a-fire-hose learning mode. Most of your non-billable hours will revolve around professional development, required pro bono work and networking (yes, you really should be networking from the beginning).

Aim for the lower end of the non-billable hours range, around 10-15% of your total time worked, when in this stage.

Mid-Level Associates (4-7 years of experience)

As you get into your mid-level associate years, your focus will continue to include professional development, pro bono work and some business development. You will want to increase your emphasis on business development opportunities, including networking and potential writing/speaking opportunities.

This is also the time to start taking on more mentoring and leadership responsibilities within the firm. What that means is that your non-billable hours will increase to be about 15-20% of total time worked.

Senior Counsel Stage & Junior Partners

This group includes junior partners and those non-partner attorneys on partnership track with 8+ years of experience (whether your firm calls you a senior associate, senior counsel or of counsel). Junior partners are typically non-equity partners (and, in some cases equity partners) who are in their first few years of being a partner and do not yet have a sizable enough book of business to keep themselves and others busy.

This group of attorneys will have similar non-billable hour investments, including:

• Professional development.
• Pro bono work.
• A significantly increased amount of business development.
• Client relationship management.
• Leadership/mentoring.

At this stage of your career, non-billable hours will be around (and could even start to exceed) 20% of all time worked.

Senior Partners

Senior partners will typically spend around 25% (and in some cases, more) of their time on non-billable activities, with a heavy emphasis on:

• Business growth.
• Client management.
• Firm management/leadership.
• Team leadership.
• Strategic planning.

And of course, senior partners will also continue with typical professional development opportunities and pro bono work.

Align Your Billable vs. Non-Billable Hours with Firm Expectations

I have some bad news: there are unwritten rules when it comes to non-billable time. It’s critical to understand both the written and unwritten rules of your firm regarding non-billable hours versus billable hours.

First, review your firm’s official policies on billable hour requirements and non-billable expectations. Most firms have non-billable hour expectations for pro bono work. Many firms give billable credit to certain types of non-billable work (up to a point). Be familiar with these policies.

Next, observe the habits of successful partners and senior associates in your practice area. This is a good guide for the preferences of your firm when it comes to non-billable hours and the expected mix between non-billable hours versus billable hours.

Finally, engage in frank discussions with mentors about the firm’s culture around non-billable activities. Don’t be shy about asking questions.

Practice Area Considerations

It’s important to understand that different practice areas may require varying allocations of non-billable time:

• Litigation may require more time for case preparation and research.
• Transactional practices might necessitate more business development activities.
• Niche or rapidly evolving areas of law may demand more time for ongoing education and professional development.

The overall policies and culture within your law firm regarding non-billable time might be further revised based on your practice area.

Align Your Non-Billable Hours To Your Career Goals

Your personal career aspirations should also influence your non-billable time allocation.

If you’re aiming for partnership, you may need to dedicate more time to business development earlier in your career. If you’re passionate about a particular cause, you might allocate more time to related pro bono work.

Those interested in firm management should seek out leadership opportunities, even if they require additional non-billable hours. And if you’re in need of more experience in a particular area that hasn’t yet been presented to you through regular firm work, you might want to take on a pro bono matter to get that experience.

Remember, these guidelines are just that – guidelines. The key is to regularly assess your time allocation, ensure it aligns with both your firm’s expectations and your personal goals, and be prepared to adjust as your career evolves.

In the next section, we’ll explore strategies for maximizing the effectiveness of your non-billable hours, ensuring that every minute contributes to your professional growth and success.

 

 

How To Maximize Your Non-Billable Time

Now that we’ve established guidelines for how much time to allocate to non-billable activities, let’s focus on making that time as productive as possible. After all, not all non-billable hours are created equal.

Your goal for non-billable time is to ensure it’s contributing – in a meaningful way – to your professional growth and the long-term success of your legal practice.

Let’s talk about how best to do that.

Track and Categorize Your Non-Billable Hours

The first step in optimizing your non-billable time is to understand exactly how you’re spending it. Here’s how to get started:

• Maintain detailed records. Just as you meticulously track your billable hours, apply the same diligence to non-billable activities.
• Categorize your time. Use the five main categories discussed earlier (Professional Development, Business Development, Pro Bono Work, Leadership/Mentoring, and Administrative Tasks) to classify your non-billable hours.
• Be specific when logging non-billable time. Instead of merely noting “networking event,” record details like “Attended legal tech conference – connected with three potential clients in the healthcare sector.”
• Review regularly. Analyze your non-billable hours and activities on a monthly or quarterly basis to identify patterns and areas for improvement.

This will assist you with focusing your non-billable time on activities that offer the greatest potential for professional growth and practice development:

Measure Your Non-Billable ROI

Once you have a clear picture of how you’re spending your non-billable time, it’s crucial to evaluate the return on investment (ROI) for each activity. To do this, consider the following:

• Goal alignment. Does the activity align with your short-term and long-term career goals?
• Skill development. Is the activity helping you acquire or refine skills that are valuable in your practice area?
• Business growth. What is the quality of connections made at a networking event (including the potential for future collaborations or client relationships)? What is the potential branding impact from a marketing activity?
• Law firm/practice value. How does the activity contribute to your firm’s and/or your practice’s overall success?
• Personal satisfaction. What personal satisfaction do you gain from the activity? There are many things you could be doing; be sure what you choose to do is personally satisfying.

Know Your Limits (& Enforce Them)

To ensure that your non-billable time is well-spent, it’s essential to establish clear boundaries and personal standards. Which means… Learn to say no. Not every non-billable opportunity is worth your time.

Be selective and focus on activities that offer the highest value to you, your practice and/or your firm. Have guidelines around what types of non-billable work you will and won’t engage in (and a limit for how many hours you want to spend on these activities).

Clearly articulate your availability and limitations to colleagues and supervisors to manage expectations. And regularly reassess. As your career evolves, be prepared to adjust your boundaries and standards accordingly.

Leverage Technology and Other Resources

Maximize efficiency in your non-billable tasks by utilizing available resources within your firm (and elsewhere). Here are some ideas to get you started:

• Use practice management software to streamline administrative tasks.
• Explore AI-powered tools for legal research and document review.
• Utilize CRM systems to manage networking contacts and follow-ups.
• Take advantage of online learning platforms for professional development.

By implementing these strategies, you can ensure that your non-billable time is not just a necessary evil, but a powerful tool for career advancement and personal growth. Remember, the goal is not to eliminate non-billable hours, but to make them work harder for you and your practice.

Strategies for Reducing Unnecessary Non-Billable Work

While some non-billable work is essential for your professional growth and practice management, not all non-billable work is necessary. Your focus needs to be on the activities that truly matter.

Here are recommended strategies to effectively streamline your non-billable activities:

 

 

For Non-Billable Administrative Work, Take Advantage Of All Resources

You do not have to do every administrative task you could do. Invest in and train your team and then delegate what you can.

• Review your non-billable activities and determine which can be handled by support staff, junior associates, or paralegals.
• Take advantage of your firm’s marketing, IT, and administrative departments for tasks that fall within their expertise.
• For solo practitioners or small firms, explore outsourcing options for tasks like bookkeeping or IT support.

 

 

Implement Efficient Systems and Processes

This is about:

• Standardizing routine non-billable tasks through processes and systems to reduce time spent on repetitive work (get help with how to do this with my FREE Systems Framework here).
• Utilizing project management tools and software designed to streamline workflow, track progress, and improve collaboration on non-billable projects.
• Batching similar non-billable activities together to minimize context switching and improve efficiency.
• Conducting periodic assessments of your non-billable workflows to identify areas for improvement or automation.

To further assist with this, be sure to embrace legal tech (when it makes sense). Stay updated on tech trends and regularly explore new technologies that could potentially reduce your non-billable hours workload.

By implementing these strategies, you can significantly reduce the time spent on unnecessary non-billable work, allowing you to focus on high-value activities that drive your career forward.

Striking the Right Balance of Non-Billable Hours vs. Billable Hours for Long-Term Success

Here are the key takeaways for balancing billable versus non-billable hours:

1. Understand the non-billable categories. Knowing the five main types is crucial for effective allocation of your precious non-billable hours.
2. Divide your time appropriately. Spend 10-25% of your time on non-billable activities. Adjust this range based on your career stage, firm expectations, and personal goals.
3. Maximize your non-billable effectiveness. Track and optimize your non-billable activities so they contribute to your professional growth and success.
4. Streamline and delegate. Implement strategies to reduce unnecessary non-billable work. Leverage technology, support staff, and efficient processes.

Successful lawyers understand that strategic non-billable activities are investments in their future success, not just time away from billing. Commit to regularly evaluating and adjusting your approach to non-billable work. With intentional effort, your non-billable hours can be a powerful tool for personal and professional growth.

Recommended Resources For Thriving As A Lawyer:

• Article: What Makes A Good Leader
• Life & Law Podcast: Getting On Partner Track
• Article: The Real Truth About Lawyer Stress & How To Reduce It