Transitioning to an In-House Position – Pros and Cons
In-house positions have long been coveted by attorneys looking to make a significant lifestyle and career change while leveraging their existing professional competencies. For those frustrated with private practice work, the possibility of transitioning to an in-house position can be tempting. Too often, however, the allure of an in-house career is built on a narrative of incorrect and outdated information. Before pouring their energies into an extensive job search, candidates should be careful to consider the realities of an in-house career.
Though a move to in-house work is not a cure-all for a candidate’s various occupational irritations, there are certainly advantages to such work that make it better suited for specific lifestyle and career goals. To properly assess whether an in-house career is right for a particular candidate, it is necessary that we strip away the myths and misinformation.
Advantages of In-House Work
Client-Integration and an Exclusive Relationship
In-house work is unique in that the attorney develops an exclusive, single client relationship. This relationship leads to a number of interesting opportunities that might not otherwise be available in a private practice law firm environment.
First, in-house attorneys are usually given a larger variety of work to handle, as they are expected to counsel their client on a range of legal matters – this is especially true at companies with smaller in-house legal departments where specialization is unlikely.
Second, in-house attorneys are generally well-integrated into the client’s business. Depending on the legal department, an ambitious attorney will have ample opportunity to grow into the business and actively target problem areas. Integration empowers an attorney to execute tasks all the way through to completion, and to identify and resolve potential legal issues as they arise.
Third, an in-house attorney is not fundamentally in conflict with their client. There are no billable hours quotas and attorneys typically do not have to keep track of their hours or keep timesheets (exceptions do exist, however – so be wary if this is a major concern).
Opportunities to Share in Business Decisions
Moving in-house tends to improve an attorney’s business-side prospects, though this depends significantly on the structure and culture of the company. If there is a gap in the business decision-making process, in-house counsel may be able to take on such responsibilities. At a large multinational corporation, asserting oneself in the business-side of things may be more difficult, as professional responsibilities tend to be more strictly enforced.
Work-Life Balance May Be More Manageable
In-house work is consistently perceived as more manageable from a work-life balance perspective. This perception is only somewhat true, however. Hours do tend to be more predictable at an in-house position. It is comparatively less common for in-house counsel to be slammed with a sudden and unexpected influx of work. Further, the lack of billable hours quotas and timesheets means that – in theory – an in-house attorney is not expected to work as many hours as a similarly positioned private practice attorney.
In reality, work-life balance varies considerably between companies. Companies operating in slumping or stagnant industries may have downsized their legal departments, leading to comparatively more work for remaining in-house counsel. In addition, some companies are simply more cost-sensitive when it comes to legal work. To avoid having to pay excessive outside counsel fees, the company may require that in-house counsel shoulder additional responsibilities.
Disadvantages of In-House Work
Income Reduction
Most candidates moving to an in-house position should expect their base salary to decrease, unless they are transitioning to a more senior position. It is worth noting, however, that the salary cut may not be as significant depending on the industry. Finance corporations, for example, tend to offer high base salaries to in-house counsel even at the junior level.
Though base salaries tend to be lower for in-house counsel than similarly positioned private practice firm attorneys, companies may provide generous overall compensation packages to help minimize the difference.
At a large corporation, a top-heavy bureaucracy may further limit potential compensation, as in-house counsel may be expected to play “office politics” to better position themselves for promotion.
Generalist Knowledge is Expected
In-house counsel may be expected to have an extensive, generalist knowledge of the law, especially at smaller companies with comparatively sparse legal departments. Expectations may also be distorted. The client may assume that a complicated legal question should be answerable without additional research. If an in-house attorney cannot meet these distorted expectations, it may negatively affect their career trajectory. Attorneys moving to an in-house position should be able to adapt to a potential need for strong surface-level knowledge in a variety of practice areas.
Legal Infrastructure May Be Limited
Corporate legal departments may not always be provided with sufficient legal support staff, resulting in a more chaotic and difficult work environment at times. Further, legal technology support may be limited or outdated, access to key legal databases and other publications may be more limited. In general, attorneys moving in-house run the risk of entering an environment that is not as well-adapted to producing a high quality legal work-product.
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There are no absolute truths applicable to all in-house positions. The devil is in the details – the nature of the industry, company culture, professional hierarchy, hours expectations, and more – and these tend to differ quite considerably depending on the company.
To better navigate the sea of in-house possibilities, speak with a legal recruiter at Garb Jaffe & Associates Legal Placement. We have extensive experience placing in-house counsel with corporations located across California (including Los Angeles, the Bay Area, Orange County and San Diego), and will advise throughout the process to ensure that you secure a placement most suitable to your particular lifestyle and career goals.
Call us today at (310) 207-0727 for a free consultation.