Introduction
Recent industry data indicate that lawyers record a significant amount of non-billable time, exceeding five hours per working day in the case of equity partners.
For firms that continue to rely on billable hours as the primary metric for performance, bonuses, and internal evaluations, this figure highlights a structural challenge that requires careful consideration.
The Gap Between Measurement and Reality
Billable hours remain the dominant benchmark for financial performance and career progression. Yet the daily workload of legal professionals includes a substantial share of essential activities that cannot be billed, particularly for partners whose responsibilities increasingly extend beyond client delivery.
This misalignment between what firms measure and what professionals actually do can undermine performance, distort incentives, and overlook contributions that are essential for long-term success. Addressing this gap is increasingly important for operational efficiency, firm sustainability, and talent retention.
Non-billable activities vary across roles and practice areas, but they often include:
- Internal and external training
- Mentoring and supervision of associates and trainees
- Travels
- Meetings with prospective clients
- Internal and external communication
- AML and compliance procedures (when not handled by PSLs)
- Client-related tasks that fall outside billable criteria
- Pitches and beauty contests
- Events and broader business development initiatives
- Learning new technologies and tools
- Innovation and strategic projects
- Market and industry analysis
- Professional updates and research
- Writing blogs, articles, and newsletters
These activities are central to competitiveness, innovation, and client service. Yet in most firms they remain classified as non-billable and excluded from formal evaluation frameworks.
Industry Developments and Strategic Considerations for Law Firm Leaders
Also because of the rise of artificial intelligence, and taking into account reflections on the added value provided to clients, law firms are gradually rethinking how they treat non-billable work. While the traditional model still considers most of these activities as operational overhead, some organisations have begun to recognise that certain categories of non-billable time have clear strategic relevance. Initiatives such as innovation projects, AI training, client-experience improvements, process redesign, or knowledge-management development are increasingly seen as investments rather than costs. These cases remain limited, but they indicate an important shift in mindset.
The evolution of legal work makes this reassessment necessary. As firms invest more in technology, digital capabilities, talent development, and client-centric approaches, the boundary between routine non-billable tasks and activities that shape the firm’s long-term competitiveness becomes less distinct. Many forms of non-billable work directly support growth, differentiation, and resilience. Others strengthen compliance, internal efficiency, and risk management. Treating all non-billable time as equivalent no longer reflects the complexity of modern legal practice.
For leadership, this shift requires a more structured understanding of how non-billable work is distributed and how it contributes to the firm’s overall performance.
Four dimensions for non-billable work management
The first dimension to consider is improving internal visibility. In many firms, non-billable time is captured only in broad, generic categories, limiting the ability to understand where professionals truly allocate their efforts. Improved classification allows leaders to identify inefficiencies, areas requiring additional support, and processes that would benefit from redesign or automation.
A second dimension is recognising the strategic value of certain non-billable activities. Mentoring, business development, market research, professional training, and the adoption of new tools can directly influence client relationships, revenue pipelines, and innovation capacity. Highlighting their importance enables firms to prioritise these activities in a more intentional way.
Role differentiation is another key dimension. Partners typically dedicate significant time to leadership, planning, client acquisition, and team development, while associates concentrate more on execution and billable production. A single performance metric cannot capture these distinct contributions. More nuanced evaluation systems help align expectations, recognise value appropriately, and support career development across all seniority levels. While traditional models assign more business development to partners and more billable work to associates, new approaches allow for more flexible and balanced narratives.
Finally, firms benefit from greater transparency around how non-billable contributions are assessed. Clear frameworks, periodic reviews, and consistent communication make this work visible and valued. This enhances resource allocation, supports a more balanced performance culture, and strengthens engagement.
Conclusion: Rethinking the Value of Non-Billable Time
By treating non-billable time as a strategic asset rather than an unavoidable cost, firms can strengthen operational clarity, enhance competitive positioning, and develop a performance model aligned with the realities of contemporary legal practice.
Non-billable hours encompass activities that sustain quality, drive innovation, support team development, and enable long-term growth. A structured approach to identifying and managing these contributions helps firms allocate resources more effectively and recognise the full range of value generated across the organisation.
Firms that integrate both billable and non-billable contributions into their evaluation systems will be better positioned to attract clients, retain talent, and maintain competitive advantage in an increasingly demanding and complex environment.
Do you want us to help you managing non-billable time in your law firm? Write us at talk@betteripsum.net