In-house legal vs law firms: Choosing a career path

Are you considering an in-house legal career? Understanding the differences between working in an in-house legal department and a law firm (otherwise known as private practice in some jurisdictions) is critical to making a well-informed decision.

Each career path has its own way of working and responsibilities – and requires a distinct set of key skills. Read on to learn about the main differences between these two legal pathways, and the unique challenges and opportunities faced by lawyers who choose the in-house route.

Why do lawyers choose to work in-house vs in law firms?

Lawyers who belong to an in-house legal team fulfil a very different role to those in private practice. The choice to work in one or the other often comes down to a lawyer’s individual career goals and preferred work environment – as well as simply “what makes them tick”. In-house lawyers serve the organization they belong to, providing internal legal support which aligns with the company’s objectives.

Lawyers who work in-house must leverage both business and legal skills as part of their daily work, and often appreciate the strategic and multifaceted aspects of the role, which regularly goes beyond merely providing legal advice.

Private practice lawyers, on the other hand, offer legal services to various external clients and often specialize in specific areas of law. This role can appeal to those who prefer to focus deeply on substantive legal work within a specific industry or practice area.

Key differences between in-house and law firms

There are a number of key differences between the day-to-day workings of in-house legal teams and law firms. We explore some of the biggest ones below.

Client relationships

In-house legal teams build rapport with their internal clients over the long term, as they work parallel to one other within the same business. In contrast, lawyers in private practice tend to develop relationships with their clients based on the legal matter at hand. With the exception of retainer arrangements, the extent of their relationship is usually limited to the case or problem that the client requires their assistance with.

Ways of working

In-house legal teams and law firms tend to utilize different organizational structures. Because in-house legal teams must work closely with their organizations, they thrive in integrated work environments which facilitate connection to both other lawyers and the wider organization.

Private practice lawyers, on the other hand, tend to operate within the parameters of more independent, traditional structures which reflect the more delineated nature of their client relationships.

Responsibilities

In-house legal teams are expected to be proactive within the business, providing strategic legal advice before problems arise. With some exceptions, private practice lawyers are, in general, more reactive, offering advice in response to legal problems as they arise.

Skill sets

In-house lawyers work cross-functionally with multiple departments, often handling multiple issues at a time. No matter how closely integrated an in-house legal team is with the wider business, to function effectively they must develop robust strategic, communication and management skills.

The most effective in-house lawyers will be able to proactively handle legal matters through a business – not just a legal – lens.  On the other hand, because private practice lawyers are expected to deliver “pure” legal advice, their skillsets are more traditional in nature (think drafting, legal research and analysis) as well as being tailored to the specific demands of their practice areas.

The unique challenges of in-house work

In-house legal work comes with a unique set of challenges which differ from those faced in law firms. While these undoubtedly present hurdles to be overcome, they are also often part of the dynamic appeal of working in-house. Here are some of the most significant challenges facing in-house lawyers:

Breadth and complexity of work

Although in-house lawyers and private practice lawyers both experience significant workloads, what this work looks like and how it is handled tends to be different. Private practice lawyers normally specialize in a specific area of legal work. Clients seek them out for their expertize within their niche, approaching them for advice on specific issues.

By contrast, those seeking an in-house legal career path can, in general, expect to handle a broader scope of legal work. In-house lawyers are called upon to manage a wide range of legal and commercial challenges, from contract management to compliance, information governance, employment law, litigation, and business strategy.

Demonstrating value

An effective in-house legal team works in sync with its organization to solve issues and mitigate potential challenges. A thorough understanding of the business, its industry, and the legal climate in which it operates is instrumental to success.

However, a lot of the work performed in-house can be difficult to showcase and measure – and as a consequence, in-house legal can often be perceived as a cost center for the wider business. To combat these perceptions, in-house lawyers must leverage tools, including legal technology, to actively demonstrate their value and impact on the wider business.

Technology

In-house legal and law firms both utilize technology to stay competitive. Private practice lawyers, however, have historically been better supported by dedicated technology, such as case management and billing systems, that meet their needs in the modern legal landscape.

In-house legal teams, on the other hand, often lack dedicated technology to meet the demands of their complex and integrated work. Traditionally, some in-house teams have relied either on email and spreadsheets or on point solutions to help them manage individual legal workflows.

As a result, in-house lawyers often struggle with managing multiple disconnected systems (which are often not purpose built for legal work) leaving them with less time to focus on high-value strategic work.

However, bespoke legal operations software, such as LawVu’s legal workspace, offers in-house teams a more integrated solution. By using this type of consolidated platform, specifically designed to manage all legal workflows in one place, in-house teams can work more efficiently, manage multiple workflows, and tangibly showcase the value they bring to the wider organization.

Learn more about where an in-house legal career can take you

In-house legal departments and law firms fulfil very different roles within the wider legal landscape. Private practice lawyers are focused primarily on the law itself – whereas the work of in-house lawyers is also informed by business needs and long-term strategy. The strong emphasis on commercial awareness in-house requires a strategic approach: one which can be dramatically enhanced by the use of appropriate legal technology.

To learn more about the unique opportunities and challenges facing in-house legal teams, head over to the InView community to read, watch and listen to first-hand perspectives from our global community of in-house legal professionals.