Tides Are Shifting: See the Flow of In-House Counsel Switching (Back) to Private Practice

The legal profession is currently seeing a reverse migration trend in Australia. 

While the switch from private practice to in-house was once considered a sign you "couldn't handle it,” experienced in-house lawyers are now in high demand — and are being actively sought by law firm recruiters. This marks an increase in value placed on seasoned in-house counsel by private law practices. 

Here, we explore how and why law firms progressively recognise the strategic and commercial value that in-house expertise brings to modern private practice.

Why Law Firms Seek In-House Talent

From the law firm’s perspective, a balance of in-house and private practice brings complementary skills to the table, which benefits the law firm and its clients. Law firms need professionals with proven strategic and commercial training, which often comes from challenging in-house business environments. 

Three Core Skills of In-House Counsel

So, what specific competencies do private law practices seek from in-house legal professionals? Four key skills private law practices are looking for include: 

1. Deep business knowledge: In-house professionals go beyond legal problem-solving to understand the business, including customers, competitors and the wider marketplace. They know how the company actually makes money.
2. Financial literacy: In-house lawyers tend to have a firmer grasp on basic finance, such as balance sheets and cash flow statements.
3. Business development and marketing skills: In-house lawyers tend to be exposed to better business development, marketing and sales techniques as well as more effective people management — skills that are often hard to come by in private practice.
4. Proactive communication: In-house lawyers typically touch base with colleagues to proactively enable the business and ask what is needed, allowing them to develop better skills in identifying commercial objectives. This reflects a “can-do” attitude.

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Market Dynamics and Blended Strength

While in-house roles have historically provided better work-life balance, the demands on corporate counsel are now such that the role is debatably tougher than in private practice. In-house legal teams are increasingly becoming overwhelmed with operational and compliance matters, limiting their strategic contribution, professional legal development and affecting morale.

As lawyers experience burnout at unprecedented levels, the search for a better workplace culture is also driving the migration back to private practice. Moreover, in-house roles often can’t match the remuneration of private practice, where salaries and bonus arrangements continue to increase. 

Boutique private practice firms like PMC Legal offer attractive packages, combining greater flexibility in a remote working environment with greater: 

• Autonomy.
• Specialisation opportunities.
• Remuneration that directly and transparently rewards performance. 

A blend of in-house skills with private practice expertise creates a stronger, more compelling legal team. This is evident in firms like PMC Legal, where team members like Jennie, Catherine, Victoria, Francis, Mitch and Adrian have successfully transitioned directly from their in-house roles to flourishing private practice careers.

Is It Time To Make a Change (Back)? 

If you’re a senior lawyer seeking flexibility, more control over your future and opportunities to further specialise in the financial services industry, reach out to PMC Legal to explore potential pathways.

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