Revenue Per Employee Law Firm

When looking at your law firm kpis you might want to consider looking beyond revenues and clients and looking inwards to your firm culture.

Revenue per employee law firm. We note that ferrari has the highest sales per employee with approx. Amount of revenue per square foot of office space. Example 4 banking industry. For the am law 100 as a whole average revenue per lawyer the metric that we ve long regarded as the most reliable measure of a firm s financial health increased by 3.

In general the top tech company s revenue per employee is more than the manufacturing companies revenue per employee. As the results show advisory firms tend to level off at a threshold of about 600 000 of revenue per advisor. How revenue per employee works. 4 154 600 000 2 598 1 599 000 united states.

Overall energy companies led the pack in revenue per employee followed by healthcare and utilities. 1 kirkland ellis. Rank firm revenue us lawyers revenue per lawyer us country with the most lawyers. Fiat on the other hand makes around 538 122 per employee.

Understanding how the firm makes and spends its money is essential in when evaluating the firm s cash flow and its risk factors. Recently a list from inside public accounting ipa came out listing the best of the best accounting firms for 2008 top 25 and then next 25 honorable mentions. The magic number for revenue per lawyer continues to be 1 million. For example the american academy of estate planning attorneys has a useful set of benchmarks that they use to analyze a law firm s profitability.

Law firms that generate 1 million in revenue for every lawyer they employ are considered the most successful the elite. Revenue of 1 1 million per employee. Revenue per employee is a meaningful analytical tool because it measures how efficiently a particular firm utilizes its employees. Verisign which provides domain names and internet security was a strong performer generating 1 1bn in revenue from only 990 employees ranking fourth in the technology sector with 1 2m per employee.

Notably though this measure includes revenue across all the advisor professionals of the firm including both senior lead advisors and also service and support advisors which means in practice many of these firms are likely supporting 1 2m of client revenue with a 2 person team.