Over the years we have spoken to many lawyers of varying seniority who have been keen to find out the right time and optimal conditions to move in-house.
There is no textbook answer for this. Ultimately it’s a personal decision. We have seen lawyers at opposite ends of the scale from the very junior, say 2 years’ PQE, to senior lawyers including Partners of law firms make the transition.
It is important to think about what you value most from your career and what your long-term objectives are before making the transition and choosing which role to take.
In-house lawyers are more than just solicitors. From providing legal advice to getting involved with decision making, they play a vital role in the operation and success of companies.
In-house lawyers frequently handle a wide range of legal issues, which is why they are often viewed as generalists. However, specialization is possible, especially in large financial institutions with extensive legal teams covering various practice areas.
Once you step into a role as an in-house lawyer, you officially start wearing two hats – that of a legal practitioner and that of a business partner.
To succeed, you not only have to be an excellent lawyer with strong technical skills, but you must also be prepared to make a contribution to the business in a commercial sense. Expect to be adaptable and work outside your comfort zone whilst multi-tasking and juggling a number of issues simultaneously. Being a fast learner, having the ability to grasp multiple legal principles and apply sound commercial judgment within a short timeframe are key skill-sets.
In-house lawyers, unlike other in-house units, are viewed as a cost centre, so it is fundamental that you become good at controlling costs.
When you move in-house, you are often expected to roll up your sleeves and get everything done yourself. This is also one of the reasons why some clients strongly prefer candidates with experience gained from both private practice and an in-house setting.
Strong communication skills are key. Having the confidence to push back to the business and knowing when to question and say no is essential. You will need to be viewed as a solutions-provider as opposed to an obstacle to progress and it is important that you provide the business with alternatives as to how the problems can be resolved to get the job done. Whereas in private practice, your role is to identify risks and offer advice, as in-house legal counsel there is a higher expectation that you understand the risk appetite of the business and work within that
As in-house counsel, the business will look to you to make a commercial decision based on the legal advice you give with a view to resolving the issue in question in a pragmatic way.
By demonstrating a strong understanding of your industry, the business you support, and the associated commercial risks—while also being a solutions provider—you can become a trusted advisor. This will lead to a long and fulfilling career as in-house legal counsel.
In-house roles often offer lower base salaries than private practice, especially in Hong Kong listed and multinational firms. While bonuses can offset this, they require a willingness to accept compensation risks. As you advance in in-house positions, salary growth and promotion prospects become less predictable. This is in contrast to the pre-determined lockstep system of private practice which allows foresight in terms of what to expect on salary and seniority from year to year.
You can request a copy of our in-house salary survey here to see how salaries compare across different sectors. https://worthingtonlegal.com/salary-guides/
The organisational structure of companies and businesses that employ in-house counsel can be bespoke and varied.
In-house teams can often have a relatively flat structure, particularly at Hong Kong listed companies and multinationals, reporting to the General Counsel or Head of Legal, making career progression less clear for lawyers moving from private practice, where paths are more defined (associate, senior associate, counsel, partnership). Promotion opportunities can be limited and there often comes a point where lawyers find they need to move to another organisation to achieve a promotion.
When is the ideal time to move in-house?
It is important to have a strong foundation and legal training/experience before making the move. Typically the most popular level for lawyers to move in-house sits at around the 4 to 5 years’ PQE mark, essentially the cusp of becoming a Senior Associate. At this level it is usually accepted that lawyers will have sufficient technical training and experience to be able to get up to speed without too much supervision and focus more on the commercial aspects of balancing the needs of the business.
Timing an in-house move depends largely on your career objectives. If your desire to go in-house is driven by an interest in switching to the business side of a company, you are probably better off making your move as a relatively junior associate. If your objective is to become a general counsel somewhere, then staying at a law firm until you are at least a senior associate is often sensible.
For lawyers with eight years’ experience or more, there are relatively fewer roles in-house as most head of legal and general counsel roles require some previous experience beyond an extended secondment in a law firm and these roles tend to be highly sought after.
Can you therefore leave it too late to move in-house?
Generally the longer you delay, the tougher it generally becomes. You’ll end up competing with people who made the move earlier and have grown with the business or competing with other lateral hires who made the move earlier and now have 2 – 3 three years’ worth of in-house experience in a relevant sector. You may also have out-priced yourself and there’s scepticism as to why you would want to take such a drastic cut to your pay at a relatively late stage in your career.
One of the questions the in-house client is almost certain to ask is: ‘Why now?' At the back of their mind, they might well be right in thinking that the only reason you’re approaching them is your hope of partnership failed to materialise; or you are worn down by the unpredictable hours and grindstone that is private practice and you see in-house as the easy route. You therefore need to demonstrate that you want to be a part of their business and help to drive it forwards and have the skills to achieve this.
Of course, there are exceptions to the ‘leaving it too late’ scenario. Many senior solicitors with niche expertise or specific knowledge and experience find themselves snapped up with ease, but these cases are the exception not the rule. In recent years there have been a number of law firm partners who have successfully transitioned to GC positions, often at clients with whom they have worked as external counsel for many years and therefore already have a close relationship with the business.
What can I do to help with a move in-house?
If you are fortunate enough to be in a position where your firm can offer you an in-house secondment: take it. It is important to get a feel as to whether in-house is really for you. In-house experience gives you a huge competitive advantage over your peers and competition; even a six month secondment period in your training contract makes you far more attractive than the candidate who has none. The client needs to believe that one of the reasons you are interested is that you understand the environment you are trying to get into and that you’re making an informed decision.
Can you return to private practice after a move in-house?
Once you have made the move in-house it can be difficult to return to private practice, although not impossible. If you have a significant amount of in-house experience and have been entrepreneurial by cultivating relationships during your career, some firms will see that as a potential business opportunity and this will help you make the move back. In Hong Kong, a number of lawyers have made the transition back from the in-house sector to private practice as partners after spending time in-house with financial institutions and Hong Kong regulators.
Most lawyers who make the move in-house tend to remain long-term. However, it is not for everybody. With there having been fewer opportunities in private practice at NQ level over the last few years we have seen lawyers taking opportunities in-house out of necessity rather than choice. We have spoken to many lawyers at this junior level who, after spending less than a year in-house, are keen to return to private practice to enhance their legal skills and knowledge. If they are flexible on PQE level a return can be relatively easy at this junior level. Ultimately they might subsequently return in-house but once they have a few more years in private practice behind them.
About the author
Camilla is the Founder and Managing Director of Worthington Legal. She has over 18 years of legal experience, initially as a lawyer in a top city law firm in London before moving to Hong Kong in 2014. Camilla regularly presents at partner strategy meetings, advises on market trends and hiring strategies and mentors lawyers at all career stages, both professionally and with the Women in Law Mentoring Programme.
