Paralegals Replacing First Year Associates?
I’m hearing rumors that law firms may be getting the message about the profit potential of competent paralegals. Specifically, Jeannie S. Johnston, paralegal expert and CEO of ParalegalGateway.com, has discussed the possible trend toward deferring junior associate hiring, and instead taking advantage of the productivity potential of paralegals. Since first-year associates are unprofitable, so the story goes, paralegals are a safe bet because they are profitable right away. They are so profitable that firms could well afford to increase paralegal compensation to better respect their actual value. Imagine that!
I would imagine (correct me if I am wrong) that any business with a training requirement tied to a new hire is probably going to lose money on that employee in the first-year. So, one would think that management factors that into an analysis of future positive returns on the investment in a new hire.
I think it would be really interesting to see what the data show regarding the long-term relationship between associate- and paralegal profitability. If there is a study out there, please let me know.
The reason why I raise this issue is because the legal profession should, in these harder times, look seriously at how its uses paralegal services, and whether paralegal expertise is managed as effectively as it might be. When firms see paralegals as glorified office assistants at low pay, failing to take full advantage of their training, they are wasting the firm’s resources and hurting profits. It’s up to management to take responsibility for getting the most payback through intelligent use of paralegals.
Firms will really start to realize the full profit potential of paralegals when they stop insisting that they be employees, physically on call daily in the “bricks and mortar” office. The huge reduction in overhead and loaded cost associated with aggressive use of contract “virtual” support is proven by a comparative study already available.
Since only actual tasks associated with advancing a case are “on the clock”, the increased hourly rate for a contract paralegal is more than offset by the large productivity increase and reduced overall cost.
A well-managed firm will use virtual paralegals to the fullest possible extent. This is the answer to the question of the long-term relationship between associates and paralegals. Virtuals are profitable no matter what a firm decides.
Kristina,
I agree with you! In every firm I have been a part of, experienced paralegals consistently outperformed new associates. I have never really understood why paralegals are often treated as legal secretaries, when they have the potential for much, much more!
Alan Haley
Thanks for your comment. A couple of thoughts on your question. I suspect many attorneys have room to improve as business managers. Of course, as cost pressure rises, management skills associated with effective use of trained staff may sharpen. A business-sharp firm or solo uses paralegals, especially virtuals, to the maximum legal extent, in order to free attorney time for work only attorneys can legally perform, and for marketing. On a positive note, I have seen ads seeking paralegals for front-to-back case management; these are smart firms.
Paralegals must press for greater professionalization of the field, including national standards for training, legal definition of the field, possibly licensing, CLE requirements, and an effective national professional advocacy organization.