For law graduates and trainees, understanding how to add value to a law firm is crucial for career progression. While technical legal skills are essential, the most effective lawyers also grasp fundamental commercial principles.

One of the most overlooked yet powerful career hacks is understanding two key things: (1) how your firm makes money and (2) how you can contribute to that process.

This strategy is particularly relevant to small and medium-sized firms but applies to larger firms as well. Despite its simplicity, few trainees are aware of it unless explicitly taught. This principle should be a mandatory part of every law school curriculum.

Understanding How Law Firms Make Money

To contribute effectively to your firm, you need to understand the distinction between billable and non-billable hours and how you can maximise both to increase profitability.

Billable Hours

Billable hours are those you spend working on a client file that the firm can charge for. Law firms generate profit costs from these hours—the portion of the client’s fees that become firm revenue. As a trainee or paralegal, your hourly rate might be around £150 plus VAT at a small firm. The solicitor you report to may bill at double that, while a partner may bill at £450-£500 per hour plus VAT.

Non-Billable Hours

Non-billable hours include administrative tasks, marketing, business development, and internal meetings. While these tasks don’t directly generate revenue, they can still contribute to the firm’s overall profitability if they free up higher-billing lawyers to focus on client work.

Two Ways to Make Money for Your Firm

As an early-career lawyer, your value isn’t just in the hours you bill—it’s also in how you enable others to bill more. You create value in two ways:

1. Direct Revenue Generation – Working on billable tasks that are charged to clients.
2. Leveraging Time – Freeing up your supervising solicitor or partner to bill more hours by handling non-billable but essential work.

If you can master both, your value to the firm will far exceed your salary, making you a key asset that the firm will want to retain.

How to Maximise Your Value

1. Focus on Billable Work

Make a habit of seeking out billable work each day. Since billable tasks are usually assigned by senior solicitors, take a proactive approach by:

• Asking for additional tasks on active files.
• Volunteering for projects that may have been overlooked.
• Ensuring your work is completed efficiently and accurately so it can be charged without delay.

2. Take Over Non-Billable Work

Identify the non-billable tasks your supervisor or partner handles and offer to take them on. Examples include:

• Drafting emails and correspondence.
• Conducting legal research.
• Organising case files.
• Preparing first drafts of documents.
• Attending to administrative follow-ups.

Even better, anticipate these tasks before being asked. If you notice recurring responsibilities that don’t require a senior lawyer’s expertise, take the initiative to handle them.

Sprinkling Value Dust: Going Beyond the Basics

Once you’ve maximised your contribution through billable and non-billable hours, take your value to the next level by improving the way work is done. This could include:

• Organising client files to make information easier to access.
• Enhancing document navigation by adding summaries or indexes.
• Proactively following up on outstanding matters.
• Improving internal processes to save time for your team.

Every time you take something off a senior lawyer’s plate, you allow them to focus on higher-value work, making yourself indispensable in the process.

Conclusion

The best way to stand out as a law graduate or trainee is to understand how your firm makes money and how you can help increase profitability. By maximising your billable work, freeing up senior lawyers, and continuously adding value, you’ll make yourself an essential asset to your firm.

In a competitive legal market, the trainees who apply this mindset will not only secure their positions but also fast-track their careers.

Want to gain practical experience and commercial awareness while preparing for the SQE? Join Freedom Law Clinic today and take your legal career to the next level