My clients frequently consult me on law department benchmarking as an initial step in the hiring process. According to the 2006 Altman Weil/Lexis Nexis Law Department Metrics Benchmarking Survey (conducted and published annually), most legal departments are staffed in accordance with lawyers per total revenues. Averages are as follows:
- 3.49 lawyers per billion in revenues
- 1 paralegal per billion in revenues (or .3 paralegals per lawyer)
- 2 administrative assistants per billion in revenues
According to the survey, average internal costs per lawyer were $333,000. In my experience, the balance tips in favor of adding an additional lawyer to the department when outside counsel costs in a particular area exceed $400,000. However, certain industries have much higher headcount needs, such as electrical and chemical manufacturing. See also the Law.com In-House Counsel section for additional information.
Another excellent resource for law department benchmarking is Rees Morrison, a consultant with Hildebrandt International.