Wolters Kluwer ELM Solutions’ Fourth LegalVIEW Insights Report Shows Wide Range of Law Firm Staffing Ratios

HOUSTON–(BUSINESS WIRE)–According to a new report from Wolters Kluwer ELM Solutions, the use of law firm partners in the “average” corporate legal department (CLD) rose to 38% in 2021, barely straying from the 7-year peak reached in 2020 when it was less costly Paralegal time only accounts for 1.5% to 2.5% of the dollar amount on outside attorney invoices. The study is the fourth in a series of ongoing LegalVIEW Insights reports from ELM Solutions’ LegalVIEW database, the world’s most comprehensive legal spend database, with more than $150 billion in invoices. legal.

Analysis by Nathan Cemenska, director of legal operations and industry insights for Wolters Kluwer ELM Solutions, indicates that while headcount is relatively stable at the market level, it varies widely across CLDs. The most common scenario reveals that between 45% and 50% of law firm hours are billed by associates, while 25% to 30% come from associates — but understanding the unique staffing ratios deployed by their own External counsel will allow internal legal teams to allocate work more strategically.

“It’s important for purchasers of legal services to understand their vendors’ staffing patterns,” says Cemenska. “Legal departments can use legal spend management solutions to determine the best staffing ratios for their top 10 or 20 legal cases and ensure vendors are compliant.

Other highlights from the fourth LegalVIEW Insights report include:

  • Only 6% of CLDs demonstrate “very high use of partners,” whereby 50% or more of all law firm hours are billed by partners. Conversely, another 6% of CLDs show “very low partner utilization”, with partners charging only 5% of hours or less.

  • The type of legal case involved can also influence staffing ratios. For example, paralegals account for 23% of all billed hours in general liability litigation, but only account for 4% of billed hours in environmental litigation.

  • Staffing ratios vary widely across Am Law levels. The Am Law 10, for example, typically generates fewer partner hours as a percentage of overall billing. However, 67% of Am Law 151-200 firms generate the majority of their hours through partners.

Along with the LegalVIEW Insights reports, ELM Solutions produces an ongoing series of blogs, webinars, and other LegalVIEW Insights content addressing emerging trends in the LegalVIEW data warehouse. Last year, ELM Solutions released the first three installments of its LegalVIEW Insights report series. Each report and other related documents are available on the LegalVIEW Insights home page.

ELM Solutions, part of the Governance, Risk and Compliance (GRC) division of Wolters Kluwer, is the global leader in enterprise legal and expense management, contract lifecycle management and contract management solutions. legal analysis. The company provides a comprehensive suite of tools that meet the growing needs of corporate legal operations departments to increase operational efficiency and reduce costs. Corporate legal and insurance departments trust its innovative technology and end-to-end customer experience to drive world-class business results. Wolters Kluwer GRC’s other legal solutions business is CT Corporation.

Wolters Kluwer ELM Solutions has been named a Leader by both IDC MarketScape: Worldwide Enterprise Legal Spend Management 2020 Vendor Assessment and IDC MarketScape: Worldwide Enterprise Matter Management 2020 Vendor Assessment. The company’s award-winning products include Passport®, one of the top-rated ELM solutions in the latest Hyperion MarketView™ Legal Market Intelligence report, and TyMetrix® 360°, the industry’s leading SaaS e-invoicing and case management solution. sector. CLM Matrix, on the other hand, was named a “Strong Performer” in The Forrester Wave™: Contract Lifecycle Management For All Contracts, Q1 2021 report. ELM Solutions’ LegalVIEW® portfolio of legal analysis solutions is based on the Industry’s largest and most comprehensive legal spend database with over $150 billion in invoices.

About Wolters Kluwer Governance, Risk and Compliance

Governance, Risk & Compliance is a division of Wolters Kluwer, which provides legal and banking professionals with solutions to ensure compliance with evolving regulatory and legal obligations, manage risk, increase efficiency and deliver better results commercial. GRC offers a portfolio of expert technology services and solutions focused on Legal Entity Compliance, Legal Operations Management, Banking Product Compliance and Banking Regulatory Compliance.

Wolters Kluwer (WKL) is a global leader in professional information, software solutions and services for healthcare; taxation and accounting; governance, risk and compliance; and the legal and regulatory sectors. We help our customers make critical decisions every day by delivering expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer achieved annual sales of €4.8 billion in 2021. The group serves customers in over 180 countries, maintains operations in over 40 countries and employs approximately 19,800 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.

Amanda J. Marsh