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Law firm founder calls for abolishment of onerous billable hour ‘tyranny’
The founder of an Australian law firm has expressed the need for less billable hour targets as a way to help address the growing mental health crisis affecting local lawyers.
Emma Musgrave
David Kelly, founder and managing director of KHQ Lawyers, said initiatives aimed at improving mental health in the legal profession are largely ineffective unless they address onerous billable hour targets, something he described as the “underlying problem”.
In his response to the article, Mr Kelly said he disagreed that employee experience (EX) measures are “cynical”, noting that a better, more people-centric approach which promotes less billable hours and more flexible working opportunities is essential in the business of law. He said the need for this approach has become more apparent as the mental health crisis continues to grow in the profession.
To reinforce his point, Mr Kelly highlighted research from The Brain and Mind Centre at the University of Sydney which found that at least one in three legal professionals suffers from depression.
Mr Kelly said that poor mental health in the legal profession is a symptom of a broader cultural problem that “goes to the heart of the way many firms operate”. It is the type of operation which requires lawyers to reach what he called unreasonable daily billable hour targets and foster a sense of job insecurity and toxic competition between lawyers.
“I’m adamant that cultural change won’t happen unless top tier firms take a more ‘people-centric’ approach, and break the tyranny of the billable unit as the overriding priority,” Mr Kelly said.
“The key to a healthy culture in a law firm is to make sure that everyone has the opportunity to do every day what they do best, as distinct from making sure that every lawyer does their best to meet a daily billable target.
“This is a subtle but profound change of focus. If you can do what you do best every day, the billable hour result flows naturally. However, if you are made to feel that the only priority is meeting an onerous daily/monthly/yearly billable hours target – no matter what – then you reduce lawyers to mere fee earners.”
In founding his firm Mr Kelly said it was important to take an approach that is focused on investing in its people.
“From less billable hours (for most lawyers, a notional target is 5.5 billable hours rather than 6.5 or 7, as is the case in most firms), to equal partner equity, and properly executed flexible working hours…I’m convinced that is the best way to forge relationships with clients and ensure the best results,” he said.
“I’m of the opinion that when you strip intelligent people of their humanity by reducing them to mere fee earners, then you encourage a negative culture that leads to issues with mental health and behaviours and problems that firms are rushing to try and stamp out – but they’re simply not addressing the real problem.”
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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