What Can the Real Rate Report Tell Us About the Value of Entry-Level Lawyers?
By Rachel M. Zahorsky
Jul 17, 2012, 01:30 pm CDT
For in-house counsel reluctant to pay fees for entry-level associates, a new study that uses actual billing data from 2007 to 2011 may further justify that resistance. Controlling for partner and associate hours per matter, associates with less than two years of experience cost clients $72,185 more than using more seasoned associates for short-term litigation matters that billed 40 hours or more, according to the Real Rate Report, featured in this month’s ABA Journal’s Law By the Numbers.
Given the reports’ additional findings that less than 3 percent of total lawyer hours billed to a company, on average, in 2011 were for entry-level associates, down from 7 percent in 2009 (even as junior associate salaries increased), how can firms offer the best value to their clients and still provide the necessary legal experience to their associates?
Hear ABA Journal business of law reporter Rachel M. Zahorsky talk with Craig Raeburn, managing director of TyMetrix Legal Analytic, co-producer of the Real Rate Report, and Stuart Dodds, director of global pricing at Baker & McKenzie (a now-growing position in the legal profession that existed at only a handful of firms just five years ago), as they discuss the impact of the study’s findings on law firm-client relationships, best practices for efficient case management, and how firms can ensure the proper investment in entry-level lawyers to serve clients now and in the future.
Listen now: What Can the Real Rate Report Tell Us About the Value of Entry-Level Lawyers?
In This Podcast:
Stuart Dodds is the Director of Global Pricing for Baker & McKenzie, one of the world's largest law firms. He is responsible for the development of Baker & McKenzie's global pricing and project management strategy and provides targeted pricing, negotiation and project management support to partners and client-facing colleagues across their 70 offices worldwide. Prior to joining Baker & McKenzie in July 2011, Stuart spent three years as Global Head of Pricing at Linklaters and worked as a management consultant for 17 years.
Craig Raeburn Jr.
Craig Raeburn Jr. joined TyMetrix in 2002 and is the Managing Director of TyMetrix Legal Analytics. Craig brought 20 years of experience in legal technology and performance management to his role at TyMetrix. During his career as an as an industry consultant in corporate law departments and as an executive at a number of legal technology companies, Craig has amassed a deep knowledge and expertise around the business of law and driving operational excellence. In his current capacity, Craig is responsible for delivering products and solutions to the legal marketplace that enable corporate law departments, insurance carriers, and law firms to gain insights into market trends, improve operational outputs, and gain understanding of the true drivers and influencers of performance.