A staffing budget can appear affordable because it leaves work with equity partners. Their time may absorb a vacancy, a review backlog, or the supervision a new manager needs without increasing the salary expense line.
As you set the 2027 budget, compare the proposed staffing with the work partners are expected to transfer. If partners will spend more time leading the firm or transitioning clients, the budget needs to account for who will handle their existing assignments.
The 2026 Rosenberg Survey makes the accounting distinction explicit: salaries and benefits include compensation for non-equity personnel, including professional and administrative staff. Equity partner compensation is excluded. A lower salary percentage therefore doesn’t establish that a firm uses fewer resources to deliver its services.
Read the Expense Percentage Alongside the Staffing Model
Among participating firms with $2–5 million in revenue, salaries and benefits averaged 42.9% of net revenue. The ratio of all staff to equity partners was 7.1. For firms with $5–10 million in revenue, those figures were 45.7% and 9.6. The report reflects 2025 financial results.
The larger group devoted a greater share of revenue to personnel while operating with more staff per equity partner. Service mix and other differences limit what this comparison can tell you about your own staffing needs. But if the proposed budget holds personnel spending steady while partners take on additional management responsibilities, where will the capacity for their existing client work come from?
Budget for the Work That Needs Coverage
Start with the assignments expected to move away from partners next year. Identify the level of experience each requires and when that capacity must be available.
A plan to add an entry-level employee may help with preparation work. It won’t immediately replace an experienced reviewer. Promoting a senior to manager may expand review capacity while creating a gap in the work that person previously handled.
For each proposed staffing change, follow the assignment far enough to see who’ll cover that gap. Include the time needed for onboarding and supervision. A hire who starts shortly before a deadline will have a different first-year contribution from one who has time to learn the firm’s clients and procedures.
This gives the partnership a more useful basis for evaluating a position than its salary alone.
Check What the Revenue Projection Requires
Revenue per full-time equivalent adds another check. In the 2026 report, it averaged $201,009 for firms in the $2–5 million group and $229,369 for those in the $5–10 million group.
Neither figure represents the revenue a new employee will personally generate. The measure reflects revenue across the firm’s staffing base, including people whose work supports others.
Compare projected revenue growth with the planned increase in staffing. If revenue will grow faster, identify what supports that assumption: higher fees, a different mix of services, or changes in how work gets done. If the projection depends on partners filling the gap, check whether that workload fits their other commitments.
If staffing will grow faster than revenue, account for the transition period. A new manager may need time to assume client responsibilities before the partner can take on other work. The budget should reflect that timing rather than assuming the hire will immediately free partner capacity.
Decide Who Covers a Hiring Delay
Identify what happens if hiring takes longer than planned. Which work will be deferred, reassigned, or limited?
If a partner will cover a vacancy, specify how long that arrangement can last and which other responsibilities will be postponed. Include that tradeoff in the budget discussion before approving both the staffing plan and the partner’s goals.
