Economics & Law Practice Management Survey

Economics & Law Practice Management Survey Executive Summary

The KBA's Economics & Law Office Management Survey was available to KBA members from August 7 - September 11, 2023. The survey had two primary objectives: (1) To provide timely, relevant, and accurate information to inform and guide practical management and planning decisions by local attorneys, including private and non-private practitioners, judiciary and government workers, and (2) To monitor key trends within the legal profession.  The survey breaks down the factors that most impact financial success and drive the need for a strategic view of legal organizations and law firms’ operations. Thanks to our friends at TCV Trust & Wealth Management for sponsoring the Survey this year.

The 2023 KBA Economic & Law Practice Management Survey results are now available!

Do you want to know how you compare to your East Tennessee colleagues regarding salary, billable hours, hourly rates, benefits, practice management software, and much more? The KBA's 2023 survey was completed by 282 lawyers or 18% of the total membership. Rebecca Green of the American Bar Association’s Center for Bar Leadership was responsible for data collection, and she reported that we can have high confidence that the survey responses reflect the demographics and economics of the Knoxville legal community overall. Where applicable, the 2023 report compares the results from the surveys completed in 2019 and 2021, so you will see the trends pre- and post-pandemic. The survey results are also filtered based on years of experience, gender, employment setting, and firm size.

IMPORTANT NOTE:  To protect the data from being released outside of the KBA membership, the results are available online and the publication is not available for download. Make sure to click the button in the bottom right corner of the document to view the publication in fullscreen. The report includes a detailed Executive Summary and comparative analysis.

Top 10 Take-Aways

1. Salaries: The estimated average salary range for KBA members in firms is between $71,665 and $238,772. For firms with 5 or fewer attorneys, the range is $49,818 and $222,058, and for firms with 21 or more attorneys, the range is $103,909 - $230,778. For men, the range is $76,176-$247,543 compared to $63,579-$222,864 for women.

2. Lawyer Biggest Stressors: Rising client expectations and work/life balance.

3. Increasing Job Dissatisfaction: When asked, “Would you pursue a legal career again?”, in 2019 28% said no, 30% in 2021, and 17% in 2023. For 2023, those practicing over 30 years were almost twice as likely to reply ‘yes’ (72%) as those who have practiced for 5 years or less (43%).

4. Pro Bono Hours: Average annual pro bono hours dropped from 36 in 2020 to 28 in 2022.

5. Billable Hours: Decrease in lawyers dedicating over 60 hours a week to the legal profession and a reduction in the number of hours spent on billable work from 32 a week in 2019 to 28.5 in 2023.

6. Standard Hourly Rates: Respondents with an hourly rate of over $350 have increased from 6% in 2019 to 20% in 2023.

7. Administrative Changes: In 2019 and 2023, the top two changes instituted by firms in the previous year were adjustment of billing rates and renegotiation of leases.

8. Student Debt: Private practice lawyers are more likely to have a higher educational debt burden than government attorneys or judges.

9. Succession Plans: There was an increase in small firms having a succession plan from 24% to 64% over the last two years.

10. Top Reasons Young Lawyers Would Change Job: Potential for increased compensation and to improve work/life balance, although 68% anticipate staying at their current firm in the next five years.

 

The Economics & Law Practice Management Survey was made possible due to the support of our friends at TCV Trust & Wealth Management