In-house counsel will see a 4.6 percent increase in average compensation in 2007, according to a recent survey by Robert Half Legal, a legal staffing agency based in California.

According to the report “Robert Half Legal 2007 Salary Guide,” in-house attorneys with one to three years of experience will see base compensation increase by 5.4 percent, to between $70,500 and $109,000 annually. First-year attorneys will see even larger gains with a 5.9 percent rise, bumping them up to between $60,000 to $87,500 annually.

The study also looked at legal department hiring trends.

“The employment market for attorneys continues to improve and hiring activity should remain strong in the coming year,” according to the survey. “Experienced lawyers with regulatory compliance backgrounds are needed by legal departments responding to the Sarbanes-Oxley Act and related corporate governance mandates. Professionals who possess business management experience in addition to legal knowledge are wanted by legal departments of all sizes.”

Also, the survey concluded that as legal departments continue to grow, GCs are bringing more work inside.

“Growth in corporate activity such as contract negotiations and mergers and acquisitions has increased demand for transactional law attorneys and professionals with contracts administration experience,” according to the survey. “Companies also seek expertise and advice in ethics and corporate governance.”