Stick or twist? The pursuit of partnership vs moving in-house

Not everyone at a law firm is eligible for partnership, nor indeed do they want it. The decision of whether to commit to the pursuit of partnership, which is increasingly elongated and competitive, or redirect your career in-house is a conundrum many deliberate over.

It is worth considering the options available if you do not pursue partnership and, in this article, we will explore whether in-house or perhaps a PSL option could be for you.

According to the Law Society, the number of in-house solicitors registered has tripled over the last couple of decades. In-house is cited as the biggest growth sector in the industry, with in-house lawyers constituting 25% of the legal profession.

Moving from private practice appeals to lawyers who are commercially driven and keen to be onsite and contribute directly to a company’s strategy and business objectives, away from a culture of fee earning. The promise of improved work-life balance is also a huge part of the appeal.

In a law firm, you’re doing the job you were trained to do, prized for your deep technical legal expertise. In-house, meanwhile, will suit lawyers enthusiastic for more diversity in their work: they typically deal with a much wider range of legal issues that affect a business, though there are huge disparities across industry sector and size of legal team, which will influence this. If you want to focus on M&A transactions then you can, likewise if you want a far broader general commercial role that touches on DP and employment law, there are plenty of roles which will enable that too.

In-house work requires strong project management skills, as you will manage multiple projects simultaneously and balance competing priorities. Greater importance is placed on having excellent interpersonal skills and the ability to build consensus. You’re working with a variety of different people every day at all levels of the organisation, so you need to be able to apply the law commercially and in context, making teamwork, communication, problem-solving and negotiation all essential. Clients will look for strong commercial acumen, and the ability to influence and work well under pressure.

There is a huge amount of variety when it comes to in-house roles but consider whether you might prefer to work in a larger legal team and within a more defined structure, or whether a smaller, high growth business with less of this infrastructure is more appealing.

Things to consider

1. In a law firm you are a revenue generator. In-house, the legal department is a cost centre and doesn’t typically contribute directly to revenue. The value a lawyer has is in being a business partner, mitigating risk and reducing external spend.
2. The career structure in-house is less defined. Progression is often more limited with flatter team structures and your earning capability will usually be lower.
3. A law firm environment is set up to enable lawyers to thrive, with support staff and tools all fine-tuned to meet a lawyer’s need. In-house you will have fewer support resources and as a cost centre, securing headcount can be hard.
4. In a law firm your deep sector specialism is valued but as a partner to the business, you need to broaden your thinking to include reputational and financial risk relevant to the business. Much of this will be beyond your comfort zone and personal expertise. There is a much greater emphasis on providing on the spot advice and simply getting stuff done. Tight timeframes are often the norm. You need to be confident in decision-making and risk-taking in the context of the business.
5. The broader exposure you will have will enable you to develop new skills. Most in-house lawyers manage a range of matters, which may include aspects of corporate, commercial, governance, employment, litigation and property law.
6. While the hours may be shorter and work more controllable, the pressure in-house can be intense and you can feel exposed when in a small legal team, answerable should a crisis present. That said, generally the working hours of an in-house lawyer will mirror those of the business. You are more likely to be able to control your workload and have much greater visibility on what is coming down the track.
7. In a law firm, you are surrounded by other lawyers, which can ensure a real sense of camaraderie. Lawyers in-house can sometimes feel isolated and as though other departments do not fully grasp the value of what you do, especially when team size is small.
8. You will be expected to build relationships with key stakeholders and to work as part of a team (inside and outside the legal department). This in turn can lead to greater job satisfaction from being able to contribute to the strategy and commercial success of a business.

Like most life-impacting decisions, the timing of making such a transition is important to ensure that you arm yourself with the most choice. In our previous article, ‘Should you go in-house?’, we detailed the point at which your corporate expertise and seniority would be most valuable to in-house hiring managers, with the majority of in-house vacancies suitable for those moving straight from private practice presenting at the mid-level. We see promotion opportunities more often go to those who already have in-house experience, with around half of all in-house leadership roles being offered internally.

If you’re curious about a career in-house, it’s highly beneficial to first secure a client secondment. It will also put you an advantage in the job market, as clients will have more confidence you are making an informed decision to transition away from fee earning.

It’s worthwhile being open-minded when it comes to opportunities that present, as so much comes down to the team, environment and factors that you can only explore through interview. Don’t deprive yourself of relevant opportunities for fear of venturing out of your comfort zone. A level of pragmatism is essential: if the role aligns with your priorities – whether that’s greater balance, impact or cultural fit – can you afford to miss the opportunity?

PSL as a career choice

The professional support or knowledge lawyer (PSL) is a private practice position that offers flexibility, predictability and improved work-life balance, particularly suitable for those who want to retain their deep sector specialism but free from fee-earning responsibilities.

This role has proliferated since its conception over 30 years ago, offering senior lawyers with mentoring skills and knowledge of the firm’s business an alternative route to a well-respected position within the senior ranks. PSLs are not precluded from pursuing partnership if the opportunity arises in the future, and the flexibility of the position allows you to nurture knowledge and simultaneously develop mentoring and leadership qualities, equipping you with essential partner characteristics.

Whether you’re committed to pursuing partnership, remaining in a law firm in a different capacity or considering a move in-house, acknowledging the range of available options early helps ensure you make the most informed decision on your career.