Is the In House Counsel Grass Always Greener? Misconceptions of Lawyers Going In House
As legal recruiters, we often speak with attorneys eager to join a company, particularly those attorneys working within law firms. As lawyers grapple with the rapidly changing legal market, many in private practice start to dream that they will be happier and more secure working within the law department of a company. Although many in house corporate counsel experience great job satisfaction, we also hear from attorneys who regret their move in house. Attorneys contemplating this type of career change should first consider some common myths about in house life.
Myth 1: Lower workload and more predictable hours
As with all of the in house myths, this one depends on the company involved. It is true that in the current law firm environment, law firm attorneys often tire of unrelenting billable hours and business development expectations. But, in many companies, in house attorneys often work just as hard—or even harder—than they did in private practice. Hours may depend on the company’s size, culture, and industry. Fast-paced startups often differ in culture from more traditional Fortune 500 companies, such as large financial services or manufacturing firms. For example, at a smaller tech company, a new product launch or major financing usually requires significant dedication and personal sacrifice, with little or no backup. Even though in house lawyers typically are not required to track their billable time, their working days can be longer and more pressured than ever.
Even the companies in old line businesses, which have large and sophisticated legal departments, are expecting more from their in house counsel and are providing less resources. In house counsel are under increased pressure to reduce their outside counsel spend and to keep more work in house. In addition, many legal departments have leaner administrative resources compared to law firms, such as fewer support staff to format documents, handle court filings, assist with research, schedule meetings, or make copies. In house attorneys are often solely responsible for their internal clients, with limited ability to delegate their work to others, including during off hours or vacation.
As in any job move, attorneys concerned about work-life balance should perform due diligence regarding the company’s expectations, position responsibilities, and resources.
Myth 2: Increased job security
Job security in the law profession is rapidly becoming an oxymoron. As law firms compete harder than ever for clients, even law firm partners worry that their jobs are vulnerable. Likewise, in house counsel also worry about their job longevity. Their corporate job is tied very closely to how the company’s senior executives view the role and importance of the legal function. Does the company’s C-Suite consider their lawyers essential to facilitating the company’s growth and success, or is it considered the “Department of No”? Additionally, C-Suite officers are often under increased pressure to produce consistent quarter-to-quarter results and, if they fail to do so, they may be replaced with new leadership. An in house attorney’s relationship with the often rapidly-changing company’s executives is critical, and office politics can also be central to his or her success.
It is also fair to say that at most startups, there is no job security. A startup’s CEO typically moves fast, and is typically the ultimate (and maybe the only) decision maker when it comes to hiring or firing.
In addition, even traditional and large companies can disappear through bankruptcy or merger, leaving the lawyers high and dry. Of course, the fact that law firm lawyers often have the benefit of a diverse client base and many different sources of work can provide more job security than an in house role dependent on a single client. Once again, prior to joining a company, a lawyer should consider the client relationships you may leave behind at a law firm, and the internal relationships you will need to nurture at your new employer.
Myth 3: Path to riches
At a startup, a calculated risk can reap significant rewards. Many lawyers are excited by stories of stock options, IPOs, and early retirement. Who wouldn’t be? As a result, they often accept an offer with lower pay during the company build up, and hope for a big payoff down the road. However, for every success story, there are multiple examples that end with worthless options and company failure.
Again, due diligence is critical before joining a smaller company. Evaluate the company’s prospects carefully, and discuss those prospects with knowledgeable people you trust, including people who are not lawyers. Honesty evaluate your and your family’s appetite for risk, and consider carefully whether you have an acceptable “Plan B” if the company or your responsibilities don’t develop as you hope.
Myth 4: No more client development or networking
This is perhaps the most persistent and incorrect myth. Often lawyers, especially newer ones, think that going in house eliminates the necessity of client development. This couldn’t be further from the truth. In reality, successful in house lawyers focus extensively on building strong personal and professional relationships both inside and outside their companies. The lawyer must cultivate close professional relationships with their internal company clients, and earn the internal client’s confidence in the lawyer’s legal and business acumen. This is the very definition of client development.
In addition, the in house lawyer must develop successful working relationships with outside counsel and, often, lawyers doing similar work at other competitive companies or at regulatory agencies. This requires in house lawyers to build and to strengthen their professional network (which also comes in useful if the lawyer eventually wants new employment). In sum, relationship building is critical to success in the in house world.
Myth 5: More interesting work
Again, the company’s culture and size determine the day-to-day life of its lawyers. Working at a start-up can be like fighting a war: hours of boredom interrupted by moments of terror. In contrast, in a large in house department, a lawyer can spend years trapped in one niche practice, or doing repetitive work.
In general, however, the successful in house lawyer enjoys a wider role than outside counsel. In house lawyers are expected to provide solid and practical business advice to their in house clients in addition to legal advice. While successful in house and outside counsel both assist their clients in moving their businesses forward successfully, an in house counsel’s intimate knowledge of the company is critical to helping internal clients reach their business and legal goals. Some lawyers enjoy this stretch into the business arena, while others feel more comfortable as outside counsel, providing primarily legal advice.
When considering a role, be honest with yourself about your strengths and weaknesses, and whether you would be satisfied and successful with the changing legal role that most companies expect from their in house lawyers.
Myth 6: Change is good
Ideally, your legal career advances over the years, resulting in more responsibility, greater pay, or improvement in what you most value. But moving positions in and of itself is meaningless. In fact, a mistaken career move can actually set a career back or change a professional trajectory. An in house position is no guarantee of increased job satisfaction, quality of life, or compensation. What actually leads to job satisfaction is personal to each lawyer—it is essential before making any move that you evaluate yourself honestly about what motivates and excites you as a lawyer.
While all lawyers should make career moves with the most information and thoughtfulness possible, remember that life is short and should be enjoyed. Even if you make a career move you regret, today’s strong legal job market will allow many lawyers to course correct and find a more satisfying new role.
Victoria Harris is President of Harris Legal Search. Ms. Harris, for more than 20 years, has built a national reputation as a recruiter of outstanding and successful lawyers for companies and law firms of all sizes throughout the United States.
Inti Knapp is Managing Director of Harris Legal Search. Ms. Knapp has successfully recruited attorneys nationally, including in house counsel at companies and partners and associates at law firms. Prior to becoming a legal recruiter in 2004, she practiced law at Perkins Coie in Seattle.