25 Sep Moving In-House
Moving In-House l working hours, limitations, opportunities and remuneration
Lawyers in law firms will most likely consider alternative career paths at some point in their journey, whether that means going to the Bar, becoming a lecturer/tutor, moving in-house or even becoming a legal recruiter! Some decide to rid themselves of any connection to the law, becoming baristas, fashion designers et al.
Moving in-house provides enough of a difference without losing what most law students study for, namely, to practise law. There are a number of reasons, and exciting opportunities, that might provide the catalyst for a private practice lawyer to consider making a move in-house.
Working in-house is a great way to be closer to the business, learn how businesses operate more broadly and to garner more knowledge about a particular industry. Lawyers looking to make this move often do so seeking a greater measure of work-life balance. While this is typically the reality, it is case by case, and sometimes you may end up working harder than you did in private practice.
In-House opportunities l the important differences
Practising law in an in-house environment differs from law firms in many ways.
A key difference is that your role changes. You go from providing external legal services to clients to becoming the client (the boss).
Another difference – if you’re a big billing machine who is celebrated internally in your law firm, moving in-house means that you’re now a cost and part of a larger cost centre. Your role becomes more about protecting your company’s interests and less about making money.
Moving in-house does mean that you will get to leave behind those 6-minute billing increments…
Projects, transactional and regulatory lawyers are seen in all major, plus many medium and even some smaller companies. Litigators are less visible in-house, unless you have a specialisation (e.g. construction, financial regulatory, class actions, insurance). Not all law firm areas of law fit (neatly) into In-House teams.
Tight budgets l Fewer resources and leaner teams
In-House legal teams typically have tight budgets – likely resulting in lean teams and fewer resources compared to what is offered in law firms.
Additionally, lawyers in-house are required to be good project managers and are often required to provide clear reasoning on the use of external law firms. It is hard to do it all in-house but there is no doubt some companies expect excellent value for external lawyers. Like most things, each company will have a different approach.
Remuneration l Reduction or Uplift
It certainly used to be the case that moving in-house would mean a drop in your salary, yet that it is certainly no longer the reality. In fact, we have observed, especially at the mid-level, lawyers receive a significant uplift when moving in-house . However, please note, unlike with law firms, remuneration packages vary considerably in-house, which is why we do not produce an annual salary guide for In-House lawyers.
When it comes to bonuses and incentives, the majority of companies that have in-house functions have short-term incentives (STIs)/bonuses and it is not rare to see long-term incentives (LTIs), especially at the more senior level.
While being a 100+ point equity point partner at a major law firm will most likely be the peak of a lawyer’s remuneration potential, working your way up to General Counsel or even Group General Counsel will still allow you to enjoy a very comfortable life, even in Sydney or Melbourne, while providing you with likely more time on the ski slopes in Europe, Japan or North America. Once again, it is case by case.
