Is moving to In-House still the end-game for legal professionals?

If Taylor Swift's song “End Game” had been about law, her endgame would have traditionally been seen as moving in-house.

Even a few years ago, many lawyers’ so-called ‘five-year plans’ would have ended with them moving to in-house legal counsel and head of law roles, giving them greater freedom over their hours, where they work and the money they get. However, the number of lawyers looking to move client-side seems to be dropping. Why is this the case? And what can companies do to address this potential pipeline problem?

A recent study from LexisNexis found that, while the numbers of in-house solicitors have increased considerably from 2017 (numbers from the Law Society finding that 25% of UK solicitors now work in-house), these numbers might be plateauing. Their recent survey found that only 4% of law firm associates were looking to make the move in-house, while 75% were firm about wanting to remain in private practice. And, regarding the numbers of new graduates, the numbers look even more bleak – only 1 in 10 PQE graduates are coming from in-house legal teams, while the number of trainee solicitor registrations has dropped by 22% since 2019. While many in-house lawyers are further in their careers than those in Private Practice, there are still those who choose the in-house route to qualify, and it seems like these numbers are dropping – which, coupled with the numbers of lawyers working in Private Practice not looking to move in-house, could mean that companies will struggle to fill their in-house vacancies if they don’t address it.

However, the report outlines some ways companies can do more to attract talent. It seems like legal associates are now putting pressure on firms to do more about a greater work/life balance, as well as offering competitive salaries to keep and retain talent. While work/life balance would encourage people to move (71%), a higher wage would encourage people to stay (70%). And, while the number of associates looking to move in-house might have dropped, so have the number of associates looking to become partners. Only 25% of those surveyed are looking to become a partner at their current firm, with 58% looking to stay at their current firm, regardless of their ambitions or lack thereof. A number of respondents to the survey felt like there wasn’t the same attraction to partner level, with 49% of law firm leaders believing that the current generation of associates is less interested in becoming partners than their predecessors. So, if in-house hirers can capitalise on this, they should be able to build up the numbers of legal professionals looking to move client-side. And, with the shifts in attitudes towards changing roles in the last few years, for both private practice and in-house, retention is a crucial issue for both.

Overall, in-house law might have issues with hiring going forward if some of this data bears fruit. However, some of the challenges facing the in-house sector are broader ones the legal industry will have to face, so these issues are not unique. By understanding what legal associates and new recruits are looking for and expecting from the firms they are working with, companies can get the lead in attracting and retaining that top talent.

Our In-House team are always ready and willing to have a conversation about this sector. You can find out more by clicking here.