How much does it cost to hire a paralegal?

When it’s about legal support, hiring a paralegal is generally a more cost-effective alternative to hiring a full-time attorney. Paralegals usually handle a majority of these important tasks, which are required in legal work which including drafting documents, conducting legal research, and managing the case files at a lesser cost. However, the paralegal cost depends on a number of factors, which include location, experience, area of specialization, and whether they are hired on a freelance, full-time, or part-time basis.

In this blog, we have enlisted the key factors that influence the cost of hiring a paralegal and provided an overview of the pricing models available. From understanding the hourly rates to how outsourcing a paralegal can save money, we will provide a complete guide to help you in making an informed decision on how much to budget for legal support. Irrespective of the size of your company, knowing the cost of hiring a paralegal is an important step in building an efficient and cost-effective legal team. 

What factors influence the cost of hiring a paralegal?

When hiring a paralegal, there is more to consider than just the hourly rate or salary. Various factors will influence the cost of hiring a paralegal, and understanding these could help you make an informed decision that is based on the business’s needs and budget. Some of the key factors that affect the paralegal costs include:

1. Location

The geographical location of the paralegal will have a major impact on the cost. Paralegals who are based in high metropolitan areas or regions with a high cost of living tend to demand higher fees when compared to those in rural areas or regions with a lower cost of living. When hiring remotely, you can take significant advantage of the lower-cost locations, which can reduce the overall hiring expenses.

2. Expertise and experience

Similar to other professions, the more specialized skills and experience a paralegal has, the higher the rates would be. A paralegal with years of experience in a certain area of law, like intellectual property or healthcare law, will mostly command a premium compared to a general paralegal. Moreover, the paralegals with certifications will have higher rates because of the specialized knowledge and ability to handle complicated tasks.

3. The type of legal work

The complexity of legal work the business needs plays a huge role in determining the costs. Routine tasks like filing documents, managing the case files, and preparing simple contracts will cost way less than the more specialised tasks like conducting legal research for complex cases, such as drafting detailed legal briefs or providing litigation support. A paralegal handling a high-stakes litigation or in-depth legal research will charge way more than one handling the administrative tasks, as it will require more skill and expertise.

4. Type of employment

The full-time in-house paralegals are usually salaried with overhead costs and benefits, such as office space and equipment, which are added to the total cost. On the other hand, freelance or remote paralegals are usually hired on a project or hourly basis, which can provide higher flexibility and cost savings for businesses that do not require full-time support. However, if you require a paralegal for a long-term, ongoing role, the overall cost of hiring a full-time employee might be more cost-effective when compared to hiring a freelancer continually.

5. Certifications and specialized skills

Certain paralegals will possess specialized skills or certifications that make them highly valuable; therefore, their rates are higher. For example, paralegals with expertise in a certain area of law or who hold certain certifications will charge higher fees because of the specialized knowledge and the ability to take on complex tasks. When specific expertise is required in a business, they should add additional costs when hiring paralegals with niche skills.

6. Amount of work

The volume of work you require a paralegal to take care of will influence the cost vastly. If the business will need occasional legal support, hiring a freelance paralegal on a project basis can be cost-effective. However, if you require ongoing and full-time legal support, you might need to hire a paralegal on a salary basis, which might incur higher upfront costs but offer better value over time. 

When budgeting for a paralegal, remember that payroll costs go beyond the base salary; they include indirect expenses such as health insurance, payroll taxes, workers’ compensation, retirement contributions and training costs —details you can explore in Global Squirrels’ guide to employee payroll costs.

What are the additional costs to consider when hiring a paralegal?

When hiring a paralegal, the cost will go way beyond just the hourly or salary rates. There are various extra expenses that businesses should take into account to ensure that the hiring process is budgeted appropriately. Here are the key additional costs to keep in mind when hiring a paralegal:

1. Markup fees of the staffing agency

If you are hiring a paralegal through a staffing agency, one of the additional costs you will encounter is the agency markup fee. Staffing agencies usually add a percentage to the paralegal’s hourly or project rate. This will cover their administrative costs and profits. This markup can range anywhere from 30% to 50% of the paralegal’s base rate, which depends on the agency’s pricing structure and the complexity of the tasks that are required. While staffing agencies will provide the convenience of handling placement and recruitment, the added markup can make hiring through them more expensive than hiring a paralegal directly or through other channels.

Traditional staffing firms typically add 30–50 % markups on a paralegal’s rate, but Global Squirrels’ legal staffing offers a markup‑free model with just payroll costs and a flat license fee ($3.99/hr), giving you transparent, lower-cost hiring

2. Wire transfer fees (if hiring globally)

When hiring a remote paralegal, you will be required to pay for wire transfer fees or other international payment charges. These fees will vary depending on the payment provider, the country of the paralegal, and the amount that is transferred. For international payments, wire transfer fees will often range from $15 to $50 per transaction. If you are paying for the remote paralegal repeatedly, these costs will add up quickly. It is important to factor these fees into the overall budget when hiring paralegals from abroad.

3. Onboarding and training costs

Before a new paralegal will start contributing effectively, they will have to be onboarded and trained as per the company’s processes, tools, and systems. Training costs will include the potential fees of training materials, software licenses, and any other courses, along with time spent on the in-house team. This will range from a few hundred to a few thousand dollars, which depends on the complexity of the tasks and the software system being used.

4. Tools and technologies

Remote paralegals will require access to multiple software and collaboration tools to complete the work effectively. These tools will include document management systems, project management tools, and legal research databases. The cost of subscriptions or licenses should be factored into the overall budget. Additionally, you will have to invest in a secure file-sharing platform, virtual communication tools, and e-signature services to ensure smooth collaboration with the paralegal.

5. Administrative and legal costs

When hiring a paralegal, businesses will often have to draft agreements that will include non-disclosure agreements, contracts, and intellectual property. These contracts will require legal review or assistance from an attorney to ensure accuracy and compliance. Moreover, administrative costs such as reference verification, background checks, and other hiring-related paperwork can add to the overall expense. If you choose to hire through a staffing agency, these administrative costs will be included in the fees, but it’s important to be aware of them.

6. Insurance and compliance

For businesses hiring a remote paralegal, especially in various regions or countries, compliance with regulations and local labor laws is important. There might be additional costs to ensure that the business meets the legal requirements, insurance premiums, and benefits for full-time remote paralegals. You might also need legal advice to ensure that the contracts and work agreements are compliant with the laws of the region where the paralegal is situated.

Why does cost transparency matter when hiring a paralegal?

Hiring a paralegal is an investment in your business. Understanding the full cost of that investment is important. While the hourly rates or salary of a paralegal seem like the most important cost factor, cost transparency will play a vital role in ensuring that you are getting the most value for the money.

This is why cost transparency is crucial when hiring a paralegal through a staffing agency:

1. Helps you to stay within the budget

When hiring a paralegal, cost transparency will ensure that there are no hidden fees or unexpected expenses that will exceed your budget. Some agencies or platforms might add additional charges like recruitment fees, administrative costs, and markup, which will make hiring a paralegal expensive. With transparent pricing, businesses will be able to calculate exactly how much they will be paying for the service, thus allowing accurate budgeting and fewer financial surprises down the line.

2. Builds accountability and trust

Transparent pricing will create an environment of trust between the staffing service provider and the customer. If you are hiring a paralegal from an agency or a staffing platform, know exactly what you are paying for and understand the breakdown of the costs. This will hold service providers accountable for the quality of work they deliver.

3. Allow you to choose and compare the right paralegal pay

When businesses are given full transparency in terms of cost structures, they can compare multiple service providers or candidates more effectively. If one service provider charges a high hourly rate but includes other benefits like access to specialized legal tools or a guaranteed level of expertise, a business can weigh whether the added cost is justified.

How much does it typically cost to hire a paralegal?

The cost of hiring a paralegal could vary depending on multiple factors like location, experience, and the type of legal work needed. Understanding the average paralegal rates will help you to budget effectively and ensure that you are paying a fair price for the services and skills required. 

Here is a breakdown of average paralegal rates:

• USA: $54T – $85T/yr
• Mexico: $9072 – $10,368/yr
• Philippines: $7128 – $11880/yr
• India: $6336 – $6864/yr

Source: Glassdoor

How will working with Global Squirrels reduce the costs of hiring a paralegal?

When it comes to hiring legal support, paralegals are a cost-effective alternative to full-time attorneys. However, even hiring a paralegal comes with its own set of costs, which include onboarding, recruitment, and ongoing overhead. This is where Global Squirrels will stand out. By leveraging the global talent pool, employer of record services, and flexible staffing solutions, we will help businesses reduce the costs of hiring a paralegal. This is how partnering up with Global Squirrels will help in cutting hiring costs:

1. Access to a global talent pool

One of the key ways we help businesses save on hiring costs is by enabling access to a global pool of paralegals. Instead of hiring locally and paying high wages to paralegals from expensive regions, Global Squirrels will connect you with talented paralegals from countries where the cost of living is lower, such as Mexico, India, and the Philippines. By hiring a remote paralegal from these locations, businesses will be able to access highly skilled talent at a fraction of the cost when compared to hiring locally in the USA. This will reduce salaries and help you save on the overhead costs like utilities, office space, and employee benefits.

2. EOR services for administrative and compliance-related issues

When hiring global remote paralegals, businesses will have to pay careful attention to legal compliance, labor laws, and taxes. This can be a headache for businesses that are unfamiliar with international employment regulations. Global Squirrels will simplify this by providing EOR services, which simply means we will handle all the compliance, legal, and administrative responsibilities for you. From drafting contracts and ensuring text compliance to managing payroll, Global Squirrels will take care of the tasks. Therefore, with EOR services, businesses will be able to save costs of setting up local entities, which will handle cross-border legal complexities and manage the HR teams that would otherwise be required to manage the tasks.

3. Transparent pricing with no hidden fees

Many staffing agencies or freelance platforms will add hidden fees or markups to the cost of hiring a paralegal. With Global Squirrels, we offer transparent pricing, which means you’ll only pay the payroll cost and a flat fee. This predictable and clear pricing structure will allow businesses to manage their budgets, thus giving them confidence that they are getting high-quality legal support at a reasonable and fair price.

4. Streamlined recruitment process

Recruiting and onboarding a paralegal can be a time-consuming and expensive process if done internally. With Global Squirrels, we will take care of the recruitment process for you. After you post a job on our portal, our platform will share three curated profiles of top paralegal talent with you. Our pre-screened candidates will have undergone multiple evaluations, which include verifying credentials, professional experience, and legal expertise. This will save your business the effort and time spent on advertising and reviewing profiles. 

How to hire a paralegal through Global Squirrels?

If you are looking to hire a paralegal, the Orange Plan would be a great fit since it will cover recruitment and EOR/payrolling. To onboard a self-sourced talent, the Purple Plan will handle this and also take care of the payroll and benefits administration. The involved steps are:

• Log in or sign up and post the job requirements along with the hiring location, position, etc.
• In 2-5 business days, you should receive an email notification to review three curated profiles on the portal.
• Conduct an interview and shortlist the ideal candidate for the onboarding process.
• Review and approve the offer letter and pay the new hire’s onboarding deposit fee. Here, the one-month hiring cost is equivalent to the payroll cost and the flat license fee.
• Global Squirrels will onboard the paralegal and will handle the HR related duties like payroll, compliance, and benefits.

Hiring a top paralegal does not have to be complex or expensive if the right staffing partner is chosen.

Gain a detailed understanding of our staffing and payrolling platform’s functionality and discover how Global Squirrels can make a difference in remote talent hiring. Take a tour!