Measuring Associate Productivity Through Billable Hours

When I sit down with owners and managing partners, one of the first questions I get is:
“How do I know if my associates are really being productive?”

Most firms default to billable hours as the answer. And that makes sense—billable hours are still the engine driving most law firm revenue. But here’s the thing: hours alone don’t tell you the full story. They’re a starting point, not the finish line.

Why Billable Hours Matter (But Aren’t Everything)

Billable hours are useful because they’re tangible. They let you see:

• Whether associates are covering their salaries and overhead.

• If workloads are balanced across the team.

• How much capacity your firm has to take on new matters.

But a high number of hours doesn’t automatically equal high productivity. For example, if a second-year associate bills 2,000 hours but a big chunk of those hours are written off—or worse, clients are unhappy with the value—they’re not actually moving the needle for your firm.

Looking at the Bigger Picture

So, how do you measure productivity in a smarter way? You look at hours in context. Here are four things I recommend tracking alongside billables:

1. Realization Rates
   Are those billed hours actually being collected? If not, it’s a red flag for efficiency or pricing issues.

2. Matter Mix
   Not all hours are equal. Associates who contribute on complex, high-value matters may create more impact than those billing the same hours on lower-margin work. Also, are you measuring flat rate versus hourly?

3. Efficiency & Delegation
   Are associates spending their time on the right things? If a junior lawyer is spending hours on tasks a paralegal could handle, it’s costing your firm in the long run.

4. Sustainability
   Productivity should be steady and sustainable. Burnout from overbilling in short bursts is a recipe for turnover, not growth.

What Good Measurement Looks Like

From an operational perspective, this is where dashboards and reporting come in. A good system should show you not just hours, but also realization, collection, and profitability. When you layer those metrics together, you start to see who’s really productive, who needs coaching, and where the firm might need to adjust workflows. I like to look at each persons day - just a quick overview. Sometimes that means removing layers of redundant accountability, sometimes it just means tracking “admin” time for a full view.

The Bottom Line

Billable hours will always be important—but they’re just one piece of the puzzle. When you put them in context, you can make better decisions about workload, staffing, training, and client service.

And here’s the real win: associates feel more supported, clients see more value, and your firm runs a lot smoother.

Email me to learn more about my process and how I can support you.