I’ve been an in-house recruiter for nearly 20 years, and my colleague, Chris Cayley, a handful more than that, and when we come across articles like this it makes us pause for thought. A move in-house was never about money, if you are lucky, there might be a small increase on your private practice salary, but more often than not it was a sideways or downward move on the cash front. However, in-house legal roles have always held a strong attraction and it wasn’t a struggle to entice lawyers from firms. In fact, back in the day such was the appeal of in-house positions that law firms were concerned about sending their associates on secondment for fear of not getting them back.
So, is it really just the money that is turning that tide now? Has In-house lost its appeal?
There are push and pull factors in any move. The pulls of in-house were the ability to focus on one company and get “beneath the skin” on the issues. To join a company that the individual felt aligned to or interested in. The promise of sensible hours and some flexible working. The package used to be more “rounded” than private practice with a bonus, car allowances and very attractive pension contributions, sometimes final salary. The idea of stock or equity and perks associated with each individual company also helped with the pull. Meanwhile, the push factors, that helped to get over the salary hump, were the very long hours, the relentless push on chargeable time, the tough commute every day, the imposition on weekends and holidays and the lack of opportunity to really get close to and understand one client business. Bonuses used to be rare and benefits lighter than in-house. Your base was everything.
These push and pull factors haven’t gone away but in the last 5 years, due to a combination of concern for employee well-being and the impact of Covid, the dynamics of these factors have altered considerably. Law firms have upped their game and they are offering WFH and hybrid arrangements allowing a break from the gruelling commute every day. Mental health advocates have campaigned to ensure more sensible hours are adhered to (see the Mindful Business Charter) and there is more respect for weekends and holidays. Salaries have rocketed and better bonuses and packages are sweetening the long hours more than they used to.
As law firms have increased their appeal, sadly, we regularly hear from in-house lawyers who feel they are expected to do more with less, the 6pm “off” doesn’t exist in the same way it used to, and the hours are longer. Salaries have plateaued, or at best increased moderately. As this article mentions in-house lawyers are having their heads turned and money is talking.
We know this is true because those of us at the front line of in-house recruitment have experienced it this year. With a cost of living crisis and possible recession ahead of us asking anyone to take a pay cut or work for less than their peers is becoming even more challenging. We’ve had more candidates decline to go forward for a role based on salary than ever before and offers are being turned down. This is a bitter pill for in-house hiring managers to swallow but sadly it is the current state of play.
However, with our combined 40+ years of in-house recruitment at Cyan Partners, we know that the status quo won’t last. The fact of the matter is some lawyers like private practice and other prefer in-house, what is a push for one person is the reason another stays. There are those lawyers who want the variety of many different clients (PP) while others want to get close to one business (IH). Some want to be experts in a particular practice area while others love the breadth of general commercial roles.
Each of us finds satisfaction in different environments and different ways of working, neither is right or wrong, better or worse. Equally our needs and preferences will vary during the course of our career, money is great, but sometimes flexibility may be more important.
There is no doubt in-house recruitment is tough right now and higher salaries are prevailing in the war for talent, but this is just a moment in time.
Author - Michelle Corneby, michelle@cyan.partners
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