Top ten reasons Solicitors go 'In-House'
Have you ever wondered why so many legal professionals move from law firms to 'in-house' positions. Read our latest insights article for ten reasons why it might be the best move you can make.
MAR 17, 2023
The majority of legal professionals tend to begin their careers within law firms (versus in-house corporate legal departments — i.e., “in-house”) for a variety of reasons. Traditionally there would be fewer in-house opportunities for newly qualified solicitors and the graduates would want to get the ‘big firm’ experience and training before going in-house; compensation can also often be higher within those bigger firms which tends to make them more attractive. This trend is slowly starting to shift as we see an increase in junior level in-house legal roles.
Regardless of the route to qualification, in our experience solicitors tend to know within the first five years of practice that they want to eventually transition in-house, and they usually cite one of the following 10 reasons:
1. Billable hours
With in-house legal departments, companies pay their solicitors’ annual salaries/bonuses/benefits and do not have billable hour requirements or quotas that their solicitors must meet to justify their cost. Conversely, law firms generally have a minimum billable hour requirement and quota that their solicitors must meet to justify their salaries and to qualify for bonuses and salary increases. The billable-hour system is the way most lawyers in law firms charge their clients, and it’s a key measure of associate and partner productivity. This system can create a culture in which everyone is pushed hard and works long hours, eventually resulting in frustration, fatigue and exhaustion.
With in-house legal departments, companies pay their solicitors’ annual salaries/bonuses/benefits and do not have billable hour requirements or quotas that their solicitors must meet to justify their cost. Conversely, law firms generally have a minimum billable hour requirement and quota that their solicitors must meet to justify their salaries and to qualify for bonuses and salary increases. The billable-hour system is the way most lawyers in law firms charge their clients, and it’s a key measure of associate and partner productivity. This system can create a culture in which everyone is pushed hard and works long hours, eventually resulting in frustration, fatigue and exhaustion.
Many solicitors find this system frustrating, and it’s one of the most common complaints recruiters hear from private practice lawyers. Consequently, it’s one of the top reasons solicitors in law firms want to go in-house.
2. Work-life balance
Many private practice lawyers have the belief that they will have greater work-life balance going in-house, and this is often true. However, that’s not always the case. Every legal team operates in a slightly different way and pressures on the legal department may vary from company to company.
2. Work-life balance
Many private practice lawyers have the belief that they will have greater work-life balance going in-house, and this is often true. However, that’s not always the case. Every legal team operates in a slightly different way and pressures on the legal department may vary from company to company.
Its important to investigate this issue at interview stage, and via your recruiter if you are working with one.
Make sure your have a clear picture of the company culture and how the legal team operates, whilst also being tactful in your approach to the question. While it is generally accepted that work-life balance is preferable in-house, some interviewers can be put-off if they perceive prospective candidates’ only motivation being to ‘seek an easy life’.
Lawyers are often, by nature, intuitive and can sense when the in-house team with whom they’re interviewing are happy and content in their roles versus overworked, exhausted and miserable. The latter is generally a tell-tale sign that work-life balance does not exist.
3. Predictability of schedule
Another common complaint among law firm solicitors is the fact that they are essentially, on call at all times. They must be available to deal with client emergencies or deadlines that arise at unpredictable and inopportune times — e.g., 4:00 p.m. on a Friday afternoon or over the weekend.
3. Predictability of schedule
Another common complaint among law firm solicitors is the fact that they are essentially, on call at all times. They must be available to deal with client emergencies or deadlines that arise at unpredictable and inopportune times — e.g., 4:00 p.m. on a Friday afternoon or over the weekend.
We have worked with and placed many in-house solicitors who report that they keep regular hours (e.g., 8:00 am – 5:00 pm), do not work weekends, spend quality time with their families, plan holidays in advance and, most importantly, do not fear being penalised for taking time off with mountains of work upon their return.
4. Working closely with the business team and interfacing with upper-level management and executives
Another appealing quality that solicitors have identified about going in-house is the opportunity to work closely with an organisation’s business team and regularly interface with upper-level management and executives.
4. Working closely with the business team and interfacing with upper-level management and executives
Another appealing quality that solicitors have identified about going in-house is the opportunity to work closely with an organisation’s business team and regularly interface with upper-level management and executives.
An in-house lawyers clients are the internal business units and the managers and executives who lead those units at the organisation at which they work. As a result, these are often the people with whom the solicitors are regularly working, communicating, and assisting on a day-to-day basis.
For private practice lawyers, this level of interaction and exposure can be limited if not non-existent.
5. Career Track
Private practice law firms can be one-dimensional from a career perspective, beginning as an associate, Lawyers will aim to rise through the hierarchy and become partner of the firm. There are increasingly alternate careers in firms (PSL Lawyers, Legal-Tech) but these remain infrequent.
5. Career Track
Private practice law firms can be one-dimensional from a career perspective, beginning as an associate, Lawyers will aim to rise through the hierarchy and become partner of the firm. There are increasingly alternate careers in firms (PSL Lawyers, Legal-Tech) but these remain infrequent.
Within an in-house legal function, Lawyers often have various long-term career opportunities available to them. Depending on the organisation and its size, you may have the opportunity to move between practice disciplines in the legal group (e.g., litigation to commercial, commercial to regulatory, etc.), be promoted to managerial positions within the legal group, move to the business side in non-legal management or executive positions, etc.
The in-house long term career opportunities are broader and may be more easily achieved than law firm partnership.
6. Focus on practicing law versus business development
Because law firms are profit making businesses, they value lawyers who can develop and bring in new business to the firm with some level of regularity, this is generally a prerequisite to becoming a partner and remaining a partner. Business development can be a daunting task for many solicitors because it is generally sales-oriented and not a skill that law schools or law firms teach. Not everyone is a natural at business development, particularly those legal professionals who are more “cerebral” in the way they approach things.
6. Focus on practicing law versus business development
Because law firms are profit making businesses, they value lawyers who can develop and bring in new business to the firm with some level of regularity, this is generally a prerequisite to becoming a partner and remaining a partner. Business development can be a daunting task for many solicitors because it is generally sales-oriented and not a skill that law schools or law firms teach. Not everyone is a natural at business development, particularly those legal professionals who are more “cerebral” in the way they approach things.
In an in-house setting, there is no business development pressure, need or requirement. The company is the client. As such, in-house solicitors may simply focus on the practice of law without the worry of developing business or the pressure of “eating what you kill.”
7. Work on deals from start to finish
Private practice lawyers are often called to assist their corporate client’s part-way through a deal or transaction when, for example, an issue arises; or, they may only be asked to handle a specific portion of a deal. Conversely, in-house lawyers are generally not only part of deals from start to finish, but they frequently participate in the pre-planning and business strategy. They are also able to see how their work and legal counsel impacts the company long-term.
8. Focus on one client
Private practice lawyers generally have various individual and/or corporate clients with whom they work at any given time. For in-house, the company (or business unit(s) within the company) is the client. Working with a single client allows you to get to know that client more intimately, better understand the client’s business strategies and perhaps assist in shaping future business strategies and goals.
7. Work on deals from start to finish
Private practice lawyers are often called to assist their corporate client’s part-way through a deal or transaction when, for example, an issue arises; or, they may only be asked to handle a specific portion of a deal. Conversely, in-house lawyers are generally not only part of deals from start to finish, but they frequently participate in the pre-planning and business strategy. They are also able to see how their work and legal counsel impacts the company long-term.
8. Focus on one client
Private practice lawyers generally have various individual and/or corporate clients with whom they work at any given time. For in-house, the company (or business unit(s) within the company) is the client. Working with a single client allows you to get to know that client more intimately, better understand the client’s business strategies and perhaps assist in shaping future business strategies and goals.
The in-house lawyer works with internal legal and business teams, all having a common goal to assist their single client. This is contrasted with doing a little here and a little there for multiple clients and lacking the same level of cohesiveness.
9. Sophisticated work
While many lawyers are under the impression that they may get less sophisticated work by leaving a law firm and going in-house, this is simply not the case with many companies. As a cost-cutting measure, more and more companies are keeping their legal work in-house versus outsourcing it to outside counsel.
9. Sophisticated work
While many lawyers are under the impression that they may get less sophisticated work by leaving a law firm and going in-house, this is simply not the case with many companies. As a cost-cutting measure, more and more companies are keeping their legal work in-house versus outsourcing it to outside counsel.
For example, where you have a large, global company that keeps much of their legal work in-house and engages in complex transactions or litigation valued at billions of pounds, the result is that their in-house legal team have the opportunity to work on exciting, high-profile and sophisticated legal matters to which they may not otherwise have access.
10. Overseas assignments
Large companies with global operations require legal professionals in the countries in which they are conducting business. This is often accomplished with lawyers native to the country in which the company has operations, but many companies are also sending their UK teams on international expatriate assignments or temporary rotations to work in conjunction with their foreign counterparts.
10. Overseas assignments
Large companies with global operations require legal professionals in the countries in which they are conducting business. This is often accomplished with lawyers native to the country in which the company has operations, but many companies are also sending their UK teams on international expatriate assignments or temporary rotations to work in conjunction with their foreign counterparts.
This is a very appealing opportunity for some lawyers and can be a primary motivation to work for global companies.
If you’re thinking about making a move “in-house,” let LHH find you the perfect opportunity. Click here to view our latest opportunities and click here to upload your CV.