So you're thinking about whether to start your career in-house, or move in-house from private practice. What are the pros and cons, what skills will you need, and if you decide to move in the opposite direction, how easy might that be? Legal journalist Grania Langdon-Down investigates
The number of solicitors working in-house is growing at a faster rate than those in private practice, and is predicted to reach 35 per cent of the profession by 2020.
So if you're in private practice and interested in making the move in-house, or if you're starting out and thinking in-house might be the route for you, how do you make the decision? If you're interested in business and commerce, will it be right for you, or might you consider law firm management roles instead? What kinds of skills do you need to work in-house effectively? And if you later want to move into (or back into) private practice, how easy might that journey be?
Recruitment experts from two leading legal recruiters give their perspective on the in-house market, while practitioners working in commerce and industry, the Government Legal Service and local government share their experiences. Christina Blacklaws, deputy vice-president of the Law Society, talks about going in-house in a law firm.
What does the in-house jobs market look like?
Jon-Paul Hanrahan, associate director of Douglas Scott Legal Recruitment, says the growth in in-house roles has been 'incredible' over last decade, particularly in the regions.
The latest Law Society statistics show the number of in-house lawyers grew by 3.6 per cent between July 2014 and July 2015, to 26,242, just over a fifth of the profession. In that time, the number of organisations taking on in-house counsel rose by five per cent – most commonly in the commerce and industry sector
Neel Mehta and Andrew Rogers, senior consultants with Hays Recruitment, gave their perspective on the in-house legal recruitment market at a recent Law Society conference. They identify high levels of competition; high demand for commercial, IT and corporate lawyers; higher demand within technology businesses and start-ups; consistent demand across the public sector; and higher demand at the junior end of the market.
Compared with 10 years ago, they say organisations are keeping more work in-house. On the career development front, there is a greater willingness to train up and invest in junior lawyers, more in-house training contracts, and greater value put on early in-house exposure and commerciality.
Sapna Bedi FitzGerald is company secretary and head of legal at LSL Property Services plc. She is also chair of the Law Society's In-House Division. She says good candidates are in high demand, with companies creating new in-house teams from scratch. 'I was one of the judges for the Law Society Excellence Awards in-house department of the year award, and saw a number of submissions from new teams,' she says.
But has the market been affected by the recent recession and its continuing effects?
'Budgets are being cut, and my instinct says the growth will slow down,' says FitzGerald. 'But an in-house department is still cheaper than retaining external lawyers. I think private practice will see a cut in instructions while in-house are asked to do more for less, which can be dangerous.'
Local government has been particularly hard hit by recent austerity measures. 'You won't become a millionaire or drive a Maserati in local government,' says Dennis Hall, commercial manager at Gateshead Council. The austerity agenda has cut deeply into budgets. Training contracts have shrunk and jobs are at risk. 'Then there is the Brexit effect, which will also have adverse consequences,' he says. 'Many regeneration schemes are underpinned by funding from the European Regional Development Fund, and other similar funding streams will gradually disappear.'
On the flip side, Hall points out that local authorities are recognised for being very good employers, and have continued to prioritise staff despite recent pressures. 'Before the austerity agenda, all had good training budgets, and they remain committed to modern workforce practices and policies such as agile and remote working.' And even Brexit may present opportunities: 'Ironically, the need to access appropriate legal advice has never been greater, in order to assess the impact of all of these changes.'
What are the pros of working in-house?
It is being part of a team making things happen that is so attractive for Deborah Grimason, general counsel and company secretary at Travis Perkins plc. 'You work in an environment that is driven by more than chargeable hours and fees, and you can get involved in financials, supply chain, procurement, project management, which gives you the experience to become general counsel.'
Catherine Seldon, a lawyer in the Government Legal Department's justice and security public law litigation team, says that team-working was a key element of her move from a legal aid firm to the Department. 'Apart from wanting to learn about policy creation,' she says, 'I was also interested in working as part of a team, co-located with my clients, rather than as a one-man-band, which is often the case in legal aid or small private practice firms.'
For FitzGerald, variety is the spice of life. 'I love being in-house,' she enthuses. 'A huge plus for my career has been the variety of legal work – public, EU, commercial, regulatory, governance – plus we are an integral part of the business, contributing to risk management and business development.'
This range of work is only increasing. In-house counsel are now being seen as the gatekeepers of their organisations in the face of large, set-piece governance issues, such as the Bribery Act, and as regulators are given more teeth to target both organisation and individuals.
In-house also tends to have more flexible working arrangements – whether it is around children or the gasman – and offer a more balanced life. 'Your relationship with your client is also more equal, as you are not dependent on them for your fee income,' FitzGerald says.
Leanne Wood, an associate for the Qualcomm group, trained and qualified in-house. She was attracted by the work-life balance, the variety of work, never knowing what might come across her desk, and not having to document her time for billing.
Hall points to the sense of personal satisfaction of working in-house in local government. 'If you measure satisfaction in terms of making a commitment to public service, doing something of value to others in a challenging, sometimes thankless environment – from the public perspective at least – then local government is for you.'
What about the cons?
The level of responsibility of a senior in-house position has a flip side. 'You still do stressful hours, the work is demanding and you don't have an army of people doing your filing,' explains FitzGerald. But it is also exciting, she says, because 'it is fast-moving and you have to be proactive in spotting issues, and react if something happens'.
Some in-house counsel say they have to fight the perception that they are a cost rather than a driver of the business; work can still be typecast and jobs can be unstable as companies merge, restructure and relocate.
Hanrahan says that joining a small team or being sole counsel can be 'incredibly demanding and lonely'. He continues: 'We have seen the emergence of junior level vacancies where there are no other lawyers, or only one, and we advise our juniors that they need a couple of years' experience in private practice first. It is tempting to see a nice brand and think 'this is what I am looking for' but there is no support, and these guys can get spat out very quickly.'
What's the career progression like?
The perception is salaries are lower than in private practice, with the gap growing at the more senior levels. However, Hanrahan says they are seeing roles, particularly in the north west, where salaries are better than in private practice.
Career progression is sometimes seen as more limited in-house, because in-house departments traditionally have a flatter structure. But Hanrahan also says that progression in-house is actually often better than private practice once you break into more senior roles: 'Progression isn't always great in private practice, with the current bottleneck at the top, as partners retire later.'
Young in-house solicitors in local government are often given high levels of responsibility early in their careers, says Hall, and there are opportunities for progression and specialisation.
Are there other options for me if I'm interested in business and commerce?
Christina Blacklaws, chief operating officer at Cripps, suggests law firm management as another option. After 25 years as a practising solicitor, she has held roles as a business development director, policy director and director of client services.
'I seized the opportunity to work on the business of law, as this has always fascinated me,' she says. 'The chance to drive strategic thinking and effect significant change in a business is highly rewarding, although the operational challenges of implementation should never be under-estimated.'
Blacklaws particularly values the variety of the role and the ability to make a real difference. But, she warns: 'You can end up being the blunt instrument of change and the least liked person in the firm if you haven't got everyone on board. It's a high risk role, so not one for the faint-hearted. There are great rewards, but the buck stops with you if something goes wrong. Nonetheless, I love my job and would recommend it to anyone up for a challenge.'
If you are interested in a management role in a law firm, she recommends that you 'test out your appetite early on by getting involved around knowledge management, learning and development, inclusion and diversity, corporate responsibility. Show that you have or can develop the skillsets to make an excellent project manager.'
What skills will I need for an in-house role?
A commercial outlook is key. Hanrahan defines this as 'plain talking, and being a decision-maker rather than an advice-giver.' If you're moving from private practice, you may need to translate your experience working with clients into language that highlights that commercial aspect. 'If I have someone with a great client following who wants to go in-house, my sales pitch is that they have a demonstrable track record of developing and keeping business,' Hanrahan explains.
One important skill, says FitzGerald is the 'ability to say no. Culturally, when you are in private practice, you want to do everything for your client and turn nothing away. In-house, you are a restricted resource, so you have to be clear about your core role, where you can add value and what you don't do, or the core stuff will slip.'
Paul Gilbert, CEO of Wise Counsel consultancy, says: 'The key strategic difference is to understand that your in-house role is not to create demand for your time, but to de-risk decision-making, policy and process, so as to reduce dependency. Key skills therefore include planning, influencing management and change implementation.'
For Grimason, being a successful in-house lawyer requires the ability to 'make the complex simple. You need an understanding of the numbers, as well as being able to speak the language of your business, and have an opinion which you are prepared to share.
'You also need to be prepared to take responsibility for your mistakes in a business environment, without personal indemnity to cover you'.
Being good at thinking on your feet and being adept at distilling new information are critical, says Seldon. 'A client can appear at your desk at any time without warning, with a question about an entirely unfamiliar area of law. You might then be called to attend a ministerial meeting about it that afternoon, or find it is mentioned in the next day's papers.'
Soft skills are critical, as with any successful lawyer, Blacklaws notes. 'You need to be a superb communicator and be able to engage and work effectively with a wide range of people. Coaching and coordinating come with the territory, so you need to be highly organised, efficient and set goals. Above all, you need to be driven, clear-sighted, a leader – but one who is adaptable and agile.'
Gilbert also highlights the importance of soft skills, including the ability to be 'practical and pragmatic', and 'be influential without necessarily having power'. He also says that 'a strong sense of personal resilience' is helpful. Hall agrees that this is of particular importance in local government, because 'your powers of persuasion will constantly be tested'.
The small size of many in-house teams mean that team-working skills and the ability to fit in with the prevailing dynamic are important. When FitzGerald is recruiting, she focuses on candidates who are the right fit for the team, rather than on pure technical skills, unless it is for a specific role. 'We are a small team, based in the same room, and work closely together, so it is about having the right blend of personalities and attitudes,' she says.
Grimason also stresses the need for in-house lawyers to be team-workers, commercially astute, solution-driven, pragmatic and not afraid to put their head above the parapet. In contrast, private practice lawyers can be successful as a 'lone' worker, who puts technical expertise above commercial pragmatism.
Hall says that, in local government, 'the further you go, the more management responsibility is involved'. To succeed at the highest level, he says, you need the ability and confidence to: 'speak to power – think Thomas Cromwell'; think commercially, corporately and strategically; demonstrate sound judgment particularly in assessing ethical questions and risk issues; recognise all problems and have both solutions and options; and manage the political interface with elected members.
He says the strategic level in local government closely resembles that of a GC in a large corporate, so the skillsets overlap. 'Both are concerned with the corporate perspective, ethics and governance, while legal services are managed / delivered both internally and externally'. He adds that being able to delegate effectively, and be patient (because local government is bureaucratic) are also important skills in local government.
How easy is it to move from in-house to private practice?
Moving from private practice to in-house is increasingly popular, but what if you want to make the move in the opposite direction?
The first thing to be sure of is your motivation and rationale, advise the Hays consultants, Mehta and Rogers, because you will be quizzed about it by potential employers.
While it may depend on PQE and whether you are specialist or generalist, Hanrahan says heads of legal and general counsel can be attractive to private practice. The problem is, having walked away from their client following to go in-house, it can be difficult to make a business case for bringing them into a partnership, unless they bring their company with them. But all is not lost, he says: 'A firm may want to buy into their commerciality and bring them into a managerial role or a busy practice area where their knowledge will be valuable.'
Your specialist practice area in-house will obviously be relevant. For instance, Hall says that specialisms in local government like planning, regeneration, property and procurement / commercial work are highly valued in the private sector. And whatever your specialism, make sure you have kept up your 'little black book' of contacts, adds the Hays consultants.
But few of our contributors would want to make the move into private practice. Grimason is an emphatic 'no', while Wood and FitzGerald say they have no plans to do so, but 'never say never'.
Top tips for career success in-house
- 'Make in-house a career choice, not because you think it's going to be an easier option or less stressful' -Sapna Bedi Fitzgerald
- 'If you are moving in-house as a trainee or as a first role, the broader your life experience beforehand the better, such as doing a non-law degree.' - Deborah Grimason'
- Take every opportunity to train and study in areas relevant to your role. Take secondment and shadowing opportunities, and be clear why you want to enter local government.' - Dennis Hall
- 'There are fewer job adverts, so write speculative applications to companies you are interested in. A paralegal role might lead to a training contract, but don't stay too long if it doesn't materialise.' - Leanne Wood
- 'Not all employers value their legal team, so only join one that is clear about its purpose. Look at the culture created by the GC, the quality of infrastructure, and whether wellbeing of staff is actively managed.' - Paul Gilbert
- 'Consider the Government Legal Department, because it gives you access to fascinating and varied cases. Salaries may be lower, but there are excellent benefits, including options to take career breaks.' - Catherine Seldon
Sapna Bedi FitzGerald, company secretary and head of legal at LSL Property Services plc, is chair of the Law Society's In-house Lawyers Division. She has always worked in-house, having qualified with the Government Legal Service at the Welsh Office in Cardiff. She built her in-house career at Yorkshire Water, the Consumer Credit Trade Association and Aviva Legal Life. In 2004, she joined her current employers after a management buyout from Aviva.
Deborah Grimason grew up in small business environment and always wanted to be in 'business'-related law, so it 'made sense' to work in-house. She did her articles with British Coal before being TUPE'd across to Nabarro Nathanson's corporate department, where she spent five years before returning in-house to become senior lawyer at the Post Office, followed by roles in telecoms and heavy industry. She joined Travis Perkins plc in 2014 as general counsel and company secretary.
Catherine Seldon is a lawyer in the Government Legal Department's justice and security public law litigation team, primarily representing the Ministry of Justice and the Home Office in defending judicial reviews, particularly in relation to prison law. She trained in a medium-sized legal aid firm specialising in family and housing law, where her LPC fee and salary were sponsored by what was then the Legal Services Commission, in order to attract new entrants to legal aid. After two years in a 'front line' job, she was keen to see it from the other side. She applied to work at the Department of Education, where she spent five years, including a year-long career break as a volunteer human rights lawyer in Sierra Leone, and a year's maternity leave, before moving to the public law team.
Leanne Wood, who took her LLB and LLM in international commercial law at Birmingham University, recently qualified after training in-house. Interested in intellectual property, she took a paralegal job at CSR plc in Cambridge, a semiconductor company with extensive patent and trademark portfolios. Within a few months, she was offered a training contract. The company paid for her LPC, which she studied part time on Saturdays while working five days a week; she completed the course in 18 months. She did her contentious seat at the London office of a US law firm. Nearly two years later, she is now an associate for the Qualcomm group, which acquired CSR plc last summer.
Christina Blacklaws spent 25 years as a family and children solicitor before becoming a business development director with TV Edwards. In 2011, she moved to the Co-operative Legal Services as policy director. In August 2014, she joined Kent solicitors Cripps as director of client services, before becoming chief operating office in April 2016. She is deputy vice-president of the Law Society for 2016/17.
Dennis Hall is currently commercial manager at Gateshead Council. A member of the Society's In-house Division committee, he advises on procurement law and a range of commercial areas.