Legal Department Staffing Ratio

Legal Department Staffing Ratio

KPI Details

Legal Department Staffing Ratio measures the total number of company-wide employees divided by the number of Legal Department employees (across all the Legal function's sub-groups) working for the company at the same point in time, expressed as a ratio (e.g., total employees per Legal Department employee). A lower than average value may be related to process inefficiencies, lack of automation and/or simple overstaffing within the Legal Department. While a high value for this metric is preferred, this should also be balanced with the level of legal service the company has forecasted that it needs in order to efficiently oversee the company's litigation and compliance with internal and external regulations and laws, as the quality of legal services may impact the company's standing should an issue pop up.

KPI Definition

The total number of company-wide employees divided by the number of Legal Department employees (across all the Legal function's sub-groups) working for the company at the same point in time, expressed as a ratio (e.g., total employees per Legal Department employee).

KPI Best Practices

• Employ outside legal firms when appropriate to avoid overstaffing internal Legal Department
• High retention rates of best employees to reduce need to employ more legal staff
• Highly effective internal audit and compliance functions to prevent future litigation

KPI Calculation Instructions Legal Department Staffing Ratio?

Two values are used to calculate this KPI: (1) the total number of employees working for the company, across all functions within the supported regions, and (2) the number of employees working in the Legal Department at the same point in time. Legal employees should be counted as any employee whose core job function is related to overseeing a company’s litigation and compliance with internal and external regulation and laws. In some cases, an internal Legal Group may also handle intellectual property issues (trademarks, copyrights, patents), risk management and/or corporate governance. Include employees in all of the Legal Group’s sub-functions (e.g., Corporate Governance, Government Affairs, Intellectual Property, Legal Administrative Support, Litigation Management, Mergers & Acquisitions) in this calculation.

KPI Formula :

Total Number of Company-Wide Employees / Total Number of Legal Department Employees