The decision to move from a law firm to an in-house counsel position is significant and often fraught with questions and considerations. From our vantage as legal recruiters, one focused on law firm attorneys and one specializing in in-house counsel recruiting, there are a few considerations we feel are key for attorneys contemplating an in-house move.
Why move in-house?
Attorneys should do some soul-searching and research to determine if moving in-house suits them. Essential considerations include compensation, job security, and work-life balance. Moving in-house typically involves a pay cut, but it offers a liberating relief from billable hours and the comfort of more predictable schedules.
- Compensation: Attorneys who move in-house typically take at least a 30% pay cut (either right away or in terms of their earning potential) compared to their peers at a firm. That compensation hit comes with a trade off (more on that below), but it's also very significant, especially if one is still paying off student loans.
- Job Security: There's a profound distinction between being a cost center instead of a profit generator. If you're happy at a law firm, you should stay there because it's where you have more influence. You make more money, and as a revenue generator, you protect yourself from economic layoffs. We've heard many stories of attorneys with impeccable resumes moving to a technology or emerging company and becoming a cost center and, unfortunately, laid off as soon as the company's profits don't match their goals. Consider the power dynamics within the organization. Partners, associates, and counsel occupy the top tier of a law firm, meaning they have significant influence over how the organization operates and are often “heard” by their colleagues. This is undoubtedly true for top-level in-house attorneys like general counsels, but it may not apply similarly to less prominent roles within the company.
- Predictability: If you are tired of keeping track of every minute you spend on a matter as you try to hit your billable hour targets, then obviously, that's a significant aspect you are absolved of when you go in-house. You may still work a similar number of hours (especially if your company is trying to cut outside counsel costs), but you'll have more notice and insight into when those busy times occur. There's a comforting predictability of when you'll be busy when practicing in-house. You can better plan your schedule when you're in-house versus at a law firm. When in-house, you're not likely to get a Friday afternoon call, ruining your weekend! In fact, you're sometimes the one making that call to outside counsel!
What will the potential challenges/roadblocks be?
- Personality traits: Having a fair amount of adaptability and flexibility is helpful. In most cases, the working style is quite different at a law firm versus in-house. Law firms are hired to look at all the permutations of an issue and advise on the possibilities. When you're in-house and asked to advise, you're looking at the set of facts right before you at the time. Sometimes, you must make a call based on the limited facts in front of you, so you have to be comfortable in the gray area, and it can be more black and white at a law firm.
- Cultural Fit: This is less about being an introvert or an extrovert; it depends on the role. Being a good relationship builder is not just helpful; it's crucial. Also important is reading the room, for example, having a high EQ, assessing your client's needs, and seeing around corners.
- Communication Style: As an in-house attorney, you interact with many departments, many of which are not staffed by lawyers. It is essential to use simpler legal language and present concepts in an understandable way to your various constituencies within the organization.
- Mobility: Attorneys may need to be flexible with their location, as certain industries and roles may be more competitive in specific regions. If you want to go to a company in an industry with less experience, it might make sense to go to a firm first in that area, get the expertise you need, and then look to go in-house. Doing a secondment is helpful because it demonstrates that you have an interest in this area, have experience in-house, and know what it's like on a day-to-day basis.
- Lack of Legal Training: Many times, companies hiring in-house attorneys are looking for people who have had the same job before, with skills, so that they are plug and play. It's not always a role where you can learn on the job.
What steps can I take to set myself up for success as an in-house attorney?
- Experience is paramount. Especially if you want to be a general counsel someday, attorneys should seek opportunities to work in different fields, such as corporate, employment, intellectual property, and compliance. The goal is to become a generalist and be able to identify issues while having some knowledge about many topics. While you may start with a specialization, take the initiative to raise your hand when someone goes on leave, allowing you to gain exposure to new areas. These are the kinds of opportunities available in-house that you typically wouldn't find at a law firm. If you're currently at a firm and you have your sights set on an industry, try to take on more matters related to that industry; you'll set yourself apart from the pack of candidates who lack that expertise.
- Networking: The goal is to make yourself more visible during your in-house search. That means talking to many different people, including the industry's movers and shakers, mentors, and trusted recruiters. This skill will continue to serve you even after you get the job.
- Flexibility: Being open to different titles (e.g., legal counsel, senior counsel, general counsel), compensation (e.g., salary, bonuses, stock options), industries (e.g., technology, nance, healthcare), and reporting structures (e.g., reporting to the CEO, CFO, or another senior executive) can increase the chances of finding greater in-house opportunities
Ultimately, you need to assess yourself and reflect on who you are and what will bring you happiness. It's beneficial to engage with in-house lawyers and learn about their daily challenges. Additionally, in-house environments can vary significantly. Some operate more like law firms, characterized by high pressure and long hours, while others offer a better work/life balance, featuring more predictable schedules and reduced stress. Recognizing these differences can assist in making a well-informed decision regarding your transition in-house and finding happiness and therefore, longevity, in your legal career.
