The big question: Private practice or in-house?
The legal profession in Australia has experienced remarkable growth over the past decade, with the number of practicing lawyers increasing by an impressive 57% between 2011 and 2022. While the industry as a whole has grown, the number of inhouse lawyers has outpaced the growth in the number of private practice lawyers (private practice = 30%, government (88%) and corporate sector (80%).
This raises an intriguing question: why are so many lawyers making the move to in-house roles? There are a number of reasons for this, which this article won’t go into, but given so many inhouse lawyers come from private practice, it’s worth exploring the key differences that set private practice apart from in-house legal work.
Whether you’re considering a career change or just curious about the dynamics of the legal landscape, read on to uncover what each path offers and why one might be a better fit for you.
| Key differences between private practice and in-house legal teams | ||
| Private practice | In-house legal teams | |
| Client relationships | ·Multiple clients across industry sectors·High-level involvement·Focused on providing services that match client’s value expectations | ·Sole focus on a single client·An integral part of the business team contributing to the company’s sustained growth and success |
| Specialisation and expertise | ·Allows greater opportunities to specialise in a specific area of the law·Opportunity to build expertise in a niche field·Opportunity to work on high-profile cases and matters where there is significant risk | ·Offers a variety of work focused on providing pragmatic, risk-based solutions which move beyond merely providing legal advice to shaping outcomes·Requires a deep understanding of the company’s operations and strategic goals to balance legal risk with commercial objectives·Expertise in keeping up to date with the legislative and regulatory issues that impact the organisation |
| Approach | ·Client driven and issue specific – focused on the issues at hand and often difficult to understand the clients issues or business more broadly·Focus on ideal legal outcome – often with little insight or influence on commercial outcomes | ·More proactive – identify and mitigate legal risks before they become issues. Emphasis on building strong relationships with internal stakeholders·Prioritization of practical risk-based solutions and commercial impacts |
| Culture and Work life balance | ·Competitive and fast-paced environment·Often faced with demanding schedules, long-hours and high-pressure environments·Many law firms are requiring 4-5 days in the office with fewer options for flexible work | ·Continuous interaction with colleagues fosters strong interpersonal connections·Cross-functional exposure with departments·More predictable schedules |
| Performance | ·Measured on billable hours, legal outcomes, client acquisition and retention | ·Measured on value to the business such as cost savings, effective risk mitigation and strategic input·Do not have to focus on attracting or retaining clients |
| Financials | ·Often higher salaries – and incentives (bonus structures, equity options) | ·Salaries vary according to the type of industry, organisation and the position·No billable hours or complex timekeeping |
| Career pathway | ·Clear career progression, including pathways to partnership·Working in a prestigious firm can enhance professional reputation and networks | ·Greater opportunity to pivot to other areas of the business and develop capabilities outside of law·Clearer trajectory into business advisory and management, including executive level opportunities |
| Resources | ·Greater access to resources such as research tools, training programs and a network of legal experts | ·Tend to have less resources due to tighter budgets.·Opportunity to adopt an entrepreneurial mindset and a “do-it-yourself” approach |
Clearly you can map out a wonderful career in both private practice and as an in-house lawyer, but there are definitely some unique advantages to being an in-house lawyer identified in the above analysis. It offers a unique opportunity to work closely with the business, enjoy a more predictable schedule, and play a direct role in shaping a company’s strategy. For professionals seeking the perfect blend of intellectual challenge, career advancement, and work-life balance, an in-house position often ticks all the boxes.
Thinking about transitioning in-house: consider secondments
If you’re considering this exciting transition, let’s talk! At Clario, we specialise in connecting legal professionals with their dream in-house roles. Many of our lawyers like transitioning from private practice to inhouse via the secondment model. It enables you to try different inhouse roles on secondment before committing to a specific client or even industry. Call us at 03 9572 4425 to discuss what your ideal position and company looks like—we’re here to make the process seamless and tailored to you. At Clario, we don’t just make transitions possible—we make them easy.
Contact us
Phone: 03 9572 4425
Email: [email protected]
Website: clario.com.au
