Wisconsin Lawyer
Vol. 79, No. 2, February
2006
Hours Per Week Engaged in
Specific Activities
| Activities |
Mean Hours |
Median Hours |
% Responding |
| Billable legal work |
35 |
35 |
89% |
|
|
25 |
25 |
53% |
|
|
13 |
10 |
29% |
- based on contingency work
|
14 |
10 |
23% |
| Office Administration |
6 |
5 |
57% |
| Marketing |
4 |
2 |
29% |
| Unbilled public services |
5 |
3 |
34% |
| Non-legal employment |
17 |
10 |
12% |
| Total Hours in Week (from above) |
42 |
42 |
92% |
| CLE hours per year |
22 |
20 |
80% |
| Pro Bono hours per year |
55 |
30 |
57% |
Full Report Provides Detail
The full 2005 Economics of Practice Survey Report is
available. Apply your own data to learn how your firm stacks up
to those of your colleagues in personal income, billing practices,
hourly rates, overhead expenditures, support staff salaries, and more.
For instance, compare your firm's data to these noteworthy results:
- Personal income. The median net income for
all respondents is $88,000. The mean net income of $108,358 varies
considerably when comparing practice locations. The full report breaks
down personal income figures by a variety of factors in addition to
practice location including principal position, field of law, years in
practice, gender, and firm size.
- Hourly rates. The average hourly billing
rate is $171; the median is $165. The full report breaks down hourly
rate figures by a variety of factors in addition to field of law
including principal position, office location, years in practice, and
firm size.
- Fee billing. Nearly four in 10 respondents
use contingency fee billing. The full report includes typical flat fees
charged for such services as preparing simple wills, directives to
physicians, deeds, powers of attorney, and articles of
incorporation/association, handling traffic tickets, and more.
- Overhead expenditures. In 2004, respondents'
average overhead expense was $87,191 per attorney, with a median of
$66,950 per attorney. Average estimated gross receipts per attorney was
$183,103, with a median of $168,000. The full report breaks down
overhead expense and gross receipts by a number of factors such as by
gender and by firm or office size.
The Economics of Law Practice in Wisconsin - 2005 Survey Report is
available for purchase by members for $39.95. Nonmembers may purchase
the report for $99.95.
To order the report:
Personal Volume of Work
| Insufficient to keep you busy |
12% |
| All you can handle |
58% |
| More than you prefer to handle |
30% |
Percent of Fees Billed That are
Uncollected
| 1-4% |
27% |
| 5% |
23% |
| 6-10% |
23% |
| More than 10% |
27% |
Total Unreimbursed Expenses Per Attorney
| Salary and fringe benefits of all non-lawyer personnel
(n=255) |
Mean |
$48,526 |
Median |
$35,000 |
| Rent, phone, utilities (n=296) |
Mean |
$16,377 |
Median |
$12,000 |
| All other non-salary expenses (n=283) |
Mean |
$33,538 |
Median |
$22,365 |
| Estimated total overhead expenses (n=314) |
Mean |
$87,191 |
Median |
$66,950 |
Survey Methodology
Constructing an unbiased sample. When reviewing
survey results, it's wise to remember one simple rule: A biased sample
will produce biased results. It is the goal of every legitimate survey
researcher to construct unbiased samples. While completely excluding all
bias is almost impossible, several measures can be taken to reduce
sampling error.
A sample should accurately reflect the target population. In this
case, the target population was all attorneys in Wisconsin who were
identified in the State Bar of Wisconsin membership database as having
active status. Due to time and budget constraints, it was necessary to
choose a smaller, representative sample that would reflect the larger
population of attorneys. To ensure appropriate geographical
representation, the sample was stratified, or subgrouped, into six
regions based on county. The total sample numbered 3,000 attorneys.
Looking at the responses. A total of 752 usable
questionnaires were returned for a 25 percent response rate. Respondents
represent a variety of practice types including private practice,
government agencies, the judiciary, in-house counsel, and those working
in legal aid or as law clerks. The survey maintains a 95 percent
confidence level, with an error of estimation of plus or minus 3
percent.
All survey researchers hope for a high response rate, although there
is no "standard." A 25 percent response rate is typical of what the Bar
has been seeing when surveying attorneys, who have increasing demands on
their time. The somewhat sensitive nature of the survey topic also may
have contributed to the response rate. It is important to realize that
25 percent, in this case, reflects the input of more than 750 Wisconsin
attorneys.
When evaluating response rates, the main question is: "How closely
does the sample match the rest of the target population?" One way to get
a handle on this is to compare the demographic attributes of survey
respondents with those of the target population as a whole. Regardless
of the sample size, the potential for nonresponse bias is a reality. So
what's the best advice? Take survey results for what they are. Pay
attention to survey methodology and review results with a critical
eye.
How Often Office Charges Clients for Various
Expenses
| |
Mean |
Always |
Usually |
Sometimes |
Rarely |
Never |
| Time spent on telephone calls (n=514) |
1.7 |
54% |
32% |
7% |
3% |
4% |
| Lawyers' travel time
(n=514) |
2.2 |
32% |
36% |
20% |
6% |
6% |
| Lawyers' travel costs (n=512) |
2.3 |
34% |
30% |
15% |
11% |
10% |
| Duplicating/photocopying expenses (n=512) |
2.8 |
18% |
29% |
20% |
18% |
15% |
| Postage (n=512) |
3.0 |
20% |
19% |
24% |
20% |
17% |
| Paralegal/legal assistant time (n=497) |
3.0 |
21% |
25% |
19% |
9% |
26% |
| Computerized legal research costs (n=511) |
3.2 |
17%
|
21% |
19% |
15% |
28% |
| Other computer time or services (n=486) |
4.0 |
6% |
9% |
13% |
27% |
46% |
| Secretarial time or services (n=502) |
4.1 |
4% |
7% |
15% |
22% |
52% |
Wisconsin Lawyer
