Why is everyone so stressed about billing hours? Forum

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JoblessAndHopeless

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Why is everyone so stressed about billing hours?

Post by JoblessAndHopeless » Tue Aug 07, 2018 1:23 pm

I'm sorry I sound like a noob, it's because I am, haha.

I'm curious about billing hour requirements for law firms and the fact that everyone seems so stressed about it. As an associate, I was under the impression that your boss (aka partner) gives you clients and work. So you work on it, and when you're done, the partner gives you more clients and work. So hours just follow, no? If you don't bill 2000 or 3000 or whatever hours by the end of the year, isn't it because there wasn't enough work assigned to you by your partners, therefore it's not your fault?

Or are you supposed to go out there and bring in clients and business to the firm, like a salesperson or something? I was under the impression only partners were expected to do that though.

I've always worked in traditional workplace, where I was always assigned work from superiors, so you just do what you're told, and if you do that, you're fine. Again, my apologies for being so unaware of how law firms and billing works.

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Re: Why is everyone so stressed about billing hours?

Post by Anonymous User » Tue Aug 07, 2018 1:30 pm

getting no work often means you're not fine, either because the firm isn't fine, or you're not fine.

either way is not a good result for the associate.

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Re: Why is everyone so stressed about billing hours?

Post by Anonymous User » Tue Aug 07, 2018 1:33 pm

JoblessAndHopeless wrote:I'm sorry I sound like a noob, it's because I am, haha.

I'm curious about billing hour requirements for law firms and the fact that everyone seems so stressed about it. As an associate, I was under the impression that your boss (aka partner) gives you clients and work. So you work on it, and when you're done, the partner gives you more clients and work. So hours just follow, no? If you don't bill 2000 or 3000 or whatever hours by the end of the year, isn't it because there wasn't enough work assigned to you by your partners, therefore it's not your fault?

Or are you supposed to go out there and bring in clients and business to the firm, like a salesperson or something? I was under the impression only partners were expected to do that though.

I've always worked in traditional workplace, where I was always assigned work from superiors, so you just do what you're told, and if you do that, you're fine. Again, my apologies for being so unaware of how law firms and billing works.
It can be a number of things.

1. Some firms use a "free market' method of handing out work, so you have to compete with other associates for work. Every year a significant percentage of associates fail that competition, and have to leave. Biglaw isn't growing, yet it hires a ton of associates every year. How do you think it makes room for these new hires?

2. The partners want to make money off of you. The amount of money they make on a project is equal to what they collect minus what they pay you. So they pressure you to be "efficient" (eat hours) because they didn't charge enough or because they're greedy and want to boost their realization rate, at your expense.

3. Clients hate paying $400 to $500 an hour for junior associates, so they push back on the partner who pushes back on you.

4. Writing your billing entries is annoying, because you're trying to convince a client to pay for that time. See #3.

A lot of stuff I'm forgetting but that's the gist.

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Re: Why is everyone so stressed about billing hours?

Post by Anonymous User » Tue Aug 07, 2018 1:39 pm

It doesn't really matter whose "fault" it is. If there's not enough work to go around then people are likely to end up losing their jobs. As a gross oversimplification imagine there are 8,000 hours of 1st year billable work for and a 2000 hour requirement, if there are 5 associates then there isn't going to be enough work for everyone, and its probably going to be allocated based on some combination of a) the associates who seek it out aggressively and b) the associates who have a reputation for good work. It's not a charity and they're not going to keep 5 associates forever just because the partners haven't brought in the business and its their fault. Even if there were 4 associates to do the 8,000 of work my experience isn't that everyone ends up with 2,000 hours but that 2 "good" associates might end up at 2400 and the 2 "bad" associates could end up at 1600. That experience adds up and hurts/helps your overall career prospects.

Basically, you're looking at things way too simply. You need to take ownership of your career (whether in law or another job) and make yourself valuable to your organization. If you just approach any job as I just do the tasks I'm assigned it won't work out well and in biglaw even more so. The best advice I've received is that your job as a junior associate is to make the people's jobs above you easier, whether that's through doing error free work, anticipating tasks and proactively asking if you can complete them, etc.

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Re: Why is everyone so stressed about billing hours?

Post by Anonymous User » Tue Aug 07, 2018 1:41 pm

JoblessAndHopeless wrote:I'm sorry I sound like a noob, it's because I am, haha.

I'm curious about billing hour requirements for law firms and the fact that everyone seems so stressed about it. As an associate, I was under the impression that your boss (aka partner) gives you clients and work. So you work on it, and when you're done, the partner gives you more clients and work. So hours just follow, no? If you don't bill 2000 or 3000 or whatever hours by the end of the year, isn't it because there wasn't enough work assigned to you by your partners, therefore it's not your fault?

Or are you supposed to go out there and bring in clients and business to the firm, like a salesperson or something? I was under the impression only partners were expected to do that though.

I've always worked in traditional workplace, where I was always assigned work from superiors, so you just do what you're told, and if you do that, you're fine. Again, my apologies for being so unaware of how law firms and billing works.
Boss tells you to spend x amount of time on project. Nowhere near enough time to do it well. Get told you should have spent more.
Boss tells you to spend x amount of time on project. Spend enough time to do well. Get told you should have spent less.
Boss upset with you about a project for something not your fault. Does not give you work for a few days/weeks.
Active case slows or deal slows. Not enough work to do.
Because of the above you take on more work. To much to do/do well.
Non-billable requirements come up that take up time.

Also, no way a partner "gives you clients." Yes you will be given work at their discretion. But no way is not having done enough work at the end of the year not your fault. You can not say in a review, "oh I didn't bill enough hours because you, partner, did not give it to me." The onus is on you to get and do it. But as described above it is tricky to ask for more without becoming overwhelmed and to time it right. There is also competition with other midlevels and associates for the limited and best work.

But yes if you have one or two great partners that love your work and are loyal to you, it is manageable. But the work is still stressful, and recording it every day to a T is stressful. You will see.

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Re: Why is everyone so stressed about billing hours?

Post by Anonymous User » Tue Aug 07, 2018 1:41 pm

Also, at firms where there is a central assigning system, work is not evenly distributed, like at a normal job. Some months you won't have hardly any work and other months you will be billing well over 200 hours per month, sometimes for months at a time. And you don't really get a "credit" for years in which you have overbilled. This kind of off/on thing really screws with your life after awhile, either because work takes over your life or because you are sitting around nervous you do not have enough work and are being pushed out.

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Re: Why is everyone so stressed about billing hours?

Post by Anonymous User » Tue Aug 07, 2018 1:47 pm

Anonymous User wrote:
1. Some firms use a "free market' method of handing out work, so you have to compete with other associates for work. Every year a significant percentage of associates fail that competition, and have to leave. Biglaw isn't growing, yet it hires a ton of associates every year. How do you think it makes room for these new hires?
I'm curious, does this competition lead to paranoia/dislike/jealousy/envy/ and even hatred among associates, especially against those who are clearly better than others?

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Re: Why is everyone so stressed about billing hours?

Post by Anonymous User » Tue Aug 07, 2018 2:07 pm

Anonymous User wrote:
I'm curious, does this competition lead to paranoia/dislike/jealousy/envy/ and even hatred among associates, especially against those who are clearly better than others?
It can, but no one manifests such feelings, and most of the (hidden) ill will is directed towards the partners, since it's ultimately their fault.

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Re: Why is everyone so stressed about billing hours?

Post by Anonymous User » Tue Aug 07, 2018 2:29 pm

Anonymous User wrote:
Anonymous User wrote:
1. Some firms use a "free market' method of handing out work, so you have to compete with other associates for work. Every year a significant percentage of associates fail that competition, and have to leave. Biglaw isn't growing, yet it hires a ton of associates every year. How do you think it makes room for these new hires?
I'm curious, does this competition lead to paranoia/dislike/jealousy/envy/ and even hatred among associates, especially against those who are clearly better than others?
Most definitely. At my firm, the associates are very competitive and passive aggressive towards one another. When I was a new lateral I heard many negative remarks made by associates to one another. Been here almost 18 months and think the atmosphere among the associates is pretty toxic and the #1 thing that depressed me about the firm, not the fact that I'm about to close out the year with 2100+ hours (2300+ including nonbillables like business development).

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Re: Why is everyone so stressed about billing hours?

Post by Anonymous User » Tue Aug 07, 2018 7:05 pm

Anonymous User wrote:
Anonymous User wrote:
1. Some firms use a "free market' method of handing out work, so you have to compete with other associates for work. Every year a significant percentage of associates fail that competition, and have to leave. Biglaw isn't growing, yet it hires a ton of associates every year. How do you think it makes room for these new hires?
I'm curious, does this competition lead to paranoia/dislike/jealousy/envy/ and even hatred among associates, especially against those who are clearly better than others?
At my firm, it does not. Not even a little bit. There are some people who are gunners, arrogant, or just not people I'd want to be friends with but it has nothing to do with how much work they're getting.

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