An Introduction to In-House Legal Positions
A wide variety of in-house roles exist for legal professionals, all of which can be divided into transactional and litigation roles. Within these areas are many specialized roles, including real estate, construction, securities, corporate, tax, antitrust, intellectual property, labor and employment, and privacy. Most law firms do not have the depth of staffing in these specialty areas as in-house legal departments, and the opportunity to rub shoulders with sophisticated clients to address complex issues. In addition, the expected level of independence, given the smaller size of an in-house department, typically requires lawyers to play a substantial role in the development and implementation of company policies .
In-house counsel, whether general or specialty, frequently overlap in function, responsibility, and authority with senior, non-legal executives. They frequently interact with external contacts in various elements of the business operations, and not infrequently are expected to represent the company in high-stress, high profile situations. In-house attorneys also teach their business executive clients how to avoid problems and minimize risk in the first instance. Many in-house attorneys also actively participate in the management and oversight of their legal department. In addition, general counsel frequently represent the company on the board of directors, serve on executive management committees, and advise senior management in virtually every major aspect of strategic planning and policy making.
The Advantages and Benefits of In-House Careers
An in-house legal role has numerous advantages over private practice positions. Those who find a good match for their skills and personality may discover that an in-house career is an intellectually stimulating and financially rewarding choice.
Compared to their private practice colleagues, in-house attorneys generally have reasonable and predictable work hours. For the overwhelming majority of lawyers in-house departments, an attorney with a 4-day workweek is unheard of, while a 3-day workweek is more associated with a senior counselor at the end of their career than an active corporate attorney. However, whereas a private practice associate works until the work runs out, an in-house attorney works the hours required to get the job done — and no more. Because in-house lawyers do not bill their time (with few exceptions), there is no need to keep a record of the hours. For those that value efficiency, this way of working generally leads to a better work-life balance.
While the true diversity of legal work is often under-appreciated, there is absolutely nothing mundane about advising on multi-billion dollar business deals or conducting significant post-acquisition integrations or working on some of the largest real estate transactions or defending a publicly-held company in the midst of a litigation trial or helping to establish a new business line or helping to finance a significant project.
Putting aside regulatory, compliance, or labor & employment issues, it is rare to see internal lawyers laid off solely due to headcount reduction. As a general matter, in-house departments are relatively stable during financial contractions.
Skills Essential for In-House Lawyers
Like every profession, in-house legal careers require you to develop a unique set of skills. And while the objectives may change from role-to-role, there are some basic skills that pertain to every opportunity. To work typically as a lawyer, most of the time you need to have an undergraduate degree in any field, and then either a Juris Doctor (JD) degree or a Master of Laws (LLM) degree in most jurisdictions. While law schools do not automatically require it, typically in the United States, you will require a program-specific examination (such as and the Law School Admission Test, or LSAT, in the United States). There are alternatives to receiving a law school degree, for example, the Apprenticeship Program, a year-long program in the United States. In addition to these academic requirements, there are career-specific requirements. The obvious one includes Universal Bar membership, which varies among the states and territories—the Judicial Council of California lists the requirements to practice law in California. For example, to get California bar admission, you need to have graduated from a bar-recognized law school, and passed the California Bar Examination, among other requirements. However, to practice law in-house, you may not need to be admitted by any bar. This is the situation in England, where internal lawyers are not members of the bar, but Chief Legal Officers (CLOs) are often qualified lawyers in an in-house role. What is critical in this case is that you ensure compliance with the regulatory requirements of the relevant jurisdiction. Beyond the formal requirements are the skills and traits that employers look for. The best in-house attorneys have a good mix of skills. They usually have strong legal research and legal writing skills, with specialized knowledge of the area of law in question. They tend to know the values of the organization, and possess the requisite skills to advise clients in all aspects of their business functions. This includes great knowledge of interpersonal skills, industry laws and regulations, business acumen (knowledge of the business to which you belong) and corporate transactions and their law and policy impacts in the region in which the business is operating. Compliance and risk management, and the negotiation and drafting of complex contracts, are also critical skills that a CLO should possess. To gain in-house experience, for those who aspire to work exclusively with the company, many start off working first in a law firm, where they can gain experience specializing in one area of the law for a range of clients or they can gain exposure to many companies as a consultant in a specialized function.
Making the Move to In-House
As is the case with any career shift, there are many in-house attorneys who were once private practitioners and vice-versa. For the former, the transition has often involved the movement from law firm to in-house counsel and eventually GC (i.e., perhaps an increase in hours and benefits over a (theoretically) lower hourly rate). Those who leave in-house to return to full-time legal practice almost always cite the same reason: boredom with repetitive work. For those who make the opposite move to in-house the key often appears to be exposure to an in-house role through a law firm, acquiring in-house experience as soon as possible, or transitioning into in-house counsel roles as "business partners" rather than traditional counsel. Aspiring in-house attorneys should be aware that getting the opportunity to make the leap from law firm to corporate legal department or law department is increasingly difficult. Know that, with a little primer on how, the process can be shortened and made more efficient. When we come across potential candidates, there is a clear distinction between those who found the hunt for in-house positions fun rather than tiresome and those who basically gave up the search for in-house employment out of frustration over taking the time to work on their resumes and administer web-search engines or falling prey to headhunters with few quality opportunities. Inherent in figuring out the process is understanding the types of resources available.
Trends Impacting In-House Legal Departments
Current trends and developments within in-house legal teams have been shaped by a number of influencing factors. The adoption of technology continues to be at the forefront of these recent changes, followed closely by new legal regulations and a focus on compliance efforts and risk management.
A report published by Altman Weil states that the entire legal profession is undergoing a seismic shift as a result of the technology revolution. In the last three years, e-discovery tools, contract management software, legal research databases, client portals and other technology infrastructures have all contributed to radical change. The report further states that this trend towards digitalization is set to continue; 92 percent of law firm leaders surveyed predict there will be more legal work automation at their firms in the year ahead and 76 percent expect growth in alternative legal services. While a 2016 report by Deloitte predicted that the impact of artificial intelligence in law could put nearly 40 percent of jobs at risk, large law firms are cautiously embracing these new technologies to increase trends toward automation and efficiency of basic tasks.
Many firms are now willing to utilize data to drive benchmarking, competitive intelligence, pricing and other metrics, and 60 percent or more of firms reported undertaking a project to gather and analyze data during the previous year.
The future for in-house lawyers appears to be bright. The Association of Corporate Counsel (ACC) believes demand for in-house lawyers will only continue to rise . More than half of all ACC members stated hiring plans were probably or definitely going to increase at their organizations.
The ACC’s 2017 Global Legal Department In-Sourcing Survey found that the in-house legal market has been expanding rapidly, with in-house legal departments employing twice as many lawyers as outside law firms in North America. As a result, companies are taking advantage of new technologies that enhance their value proposition while reducing expenses.
Not surprisingly, this increase in demand is mainly across six industries (manufacturing, financial services, technology, pharmaceuticals, business services and retail). However, the ACC’s survey showed that the in-house market for government jobs is also strong due to growing regulatory requirements in the United States and an increased push for more aggressively managing costs associated with public sector legal work.
In-house departments are responding to this increasing demand by streamlining more traffic through in-house counsel, enhancing collaboration internal departments and expanding services offered to the business. In addition, the role of in-house lawyers is rapidly evolving from their traditional job functions, to include more involvement in corporate governance, risk management, compliance and the development of business strategies.
The corporate market is continuously becoming more competitive, with a focus on hiring high-quality candidates who adapt quickly to new market trends. These candidates not only possess sophisticated technical knowledge but have the ability to collaborate, work in-house and solve the problems their organizations face.
Common Challenges for In-House Legal Professionals
While the benefits of in-house legal jobs are numerous, there are also some common challenges faced by all in-house teams. The average in-house counsel not only has all the responsibilities that traditionally have fallen to a legal department, but also its limited resources often mean that each member of the team has additional responsibilities. In-house legal teams are expected to find solutions for legal issues, to provide exceptional customer service, while maintaining a high level of productivity, continuing education on all applicable laws and regulations, and keeping up a strong business relationship with vendors. These challenges only compound the more traditional legal issues, such as contract negotiations, employment issues, compliance concerns, intellectual property protection, and risk management. Staying abreast of changes in legislation and industry standards while working to negotiate optimal solutions for each of these challenges puts a great deal of pressure on in-house teams.
Forecast for In-House Careers
The future of in-house legal roles appears bright, with various factors contributing to their growth and development. Several trends point to an increasing demand for in-house legal professionals due to advances in technology, a shift towards a more business-oriented approach by businesses, and a greater emphasis on regulatory compliance.
Technological advancements have led companies to aggressively seek new ways to enhance their operations and reduce costs. This push for greater efficiency has increased the demand for legal professionals who can leverage new technologies to streamline processes, such as document management, contract generation and review, and e-billing and invoice management. Such efficiencies reduce the in-house legal team’s workload while allowing them to focus on more complex matters. As automation continues to transform the legal landscape, in-house legal professionals increasingly find themselves in roles that require technological savviness.
Once a role driven by contractual analysis and litigation, the in-house legal team is now expected to speak the language of business . Not only are companies looking for in-house counsel who can handle deal-making and regulatory compliance, but they also want business-minded individuals who understand their industry and the market. Experience in operational roles has become a valuable asset, positioning in-house counsel as a go-to advisor and valued member of the team. This expectation is especially evident at companies where the in-house legal team is small, as they must be even more integrated within the company’s operations.
In response to an increasingly litigious environment and stricter regulations, the role of the in-house legal professional increasingly focuses on risk mitigation. In-house teams provide essential support to commercial and operational teams during due diligence, negotiating and implementing strategies for mergers and acquisitions or raising capital. They also help navigate employment, data security and environmental regulations, adding further value to the company. Moreover, developing internal policy and training programs to ensure compliance with these regulations is a rewardable endeavor pursued by a small but growing number of in-house lawyers.