Too often, my colleagues in law firms push back on going in-house because they want to stay longer to make more money, gain experience, or find a more fitting position. These can be fair reasons to delay or avoid going in-house — especially if one genuinely enjoys most aspects of their law firm job.
But many don’t appreciate their law firm work; rather, they appreciate the predictability law firms provide over going in-house. It takes only a few clicks to see which top law firms matched Milbank’s special bonus this summer. Even if your firm never matches, there’s comfort in knowing that a high volume of work promises consistent and significant pay increases each year. And those who spent a few (or no) years working before law school may not understand a world of corporate interviews, middle managers, and late-night meals that you cannot expense.
Let’s reframe how we compare in-house and law firm jobs, starting with the pay. Here are three ways the money you earn in-house is worth more than law firm money.
Competitive Salaries Exist
Many in-house positions at large companies offer six-figure compensation that surpass figures listed on job postings, which often omit bonuses, equity, or benefits from public view. These positions exist for attorneys with as little as two years of experience and can have compensation packages competitive with junior and mid-level Am Law 100 positions.
While in-house jobs still pay significantly less than law firms, particularly for senior attorneys, you might find these jobs competitive when factoring reduced hours and improved quality of life.
Opportunities for Multiple Streams of Income
In-house jobs reward results over hours. So, an efficient in-house attorney can repurpose extra hours for other income opportunities while working the same or less total hours as they would at a law firm.
I have in-house colleagues who own businesses renting properties, running online stores, coaching junior professionals, and writing books. These pursuits generate income growth potential that they wouldn’t find at a law firm unless they had equity or a generous bonus policy.
I also have colleagues who freelance or work part-time with skills they always had or skills they gained thanks to their newfound extra time. This work provides them income predictability and the flexibility to start and stop work depending on their financial needs.
Gaining Experience for Higher Income Jobs
The road to higher income over time can be paved with a variety of experiences. These experiences are something law firms, with their intense specialization, do not always provide. Going in-house sooner creates variety sooner. Foremost, there is the value of having both law firm and in-house experience. You broaden your perspective and skills and become more competitive for future roles because you are wearing multiple hats beyond “lawyer” and understanding all the facets of your company’s business.
The value of the in-house experience sets you up for larger, higher-paying companies who do not want to train a lawyer on how to practice in-house. Experience in a larger company could open the door to a startup that pays a premium for the risks of leaving a more stable employer. And diverse in-house legal experience could lead to non-legal roles that pay a premium for business-minded former attorneys.
You can even take your in-house experiences back to a law firm and distinguish yourself for higher compensation. You not only offer business-minded skills and insights that are much harder to develop as a traditional associate, but also a potential book of business based on the network you gained while in-house.
While law firms can provide a clear and predictable way to earn income, early in-house experience can offer flexibility and the potential to grow your income in ways that create greater value over time.
Earl Grey (not his real name) is an in-house attorney at a Fortune 500 tech company. You can reach him by email at earl.grey.opines@gmail.com.
The post Go In-House Sooner: The Money Is Worth It appeared first on Above the Law.
Too often, my colleagues in law firms push back on going in-house because they want to stay longer to make more money, gain experience, or find a more fitting position. These can be fair reasons to delay or avoid going in-house — especially if one genuinely enjoys most aspects of their law firm job.
But many don’t appreciate their law firm work; rather, they appreciate the predictability law firms provide over going in-house. It takes only a few clicks to see which top law firms matched Milbank’s special bonus this summer. Even if your firm never matches, there’s comfort in knowing that a high volume of work promises consistent and significant pay increases each year. And those who spent a few (or no) years working before law school may not understand a world of corporate interviews, middle managers, and late-night meals that you cannot expense.
Let’s reframe how we compare in-house and law firm jobs, starting with the pay. Here are three ways the money you earn in-house is worth more than law firm money.
Competitive Salaries Exist
Many in-house positions at large companies offer six-figure compensation that surpass figures listed on job postings, which often omit bonuses, equity, or benefits from public view. These positions exist for attorneys with as little as two years of experience and can have compensation packages competitive with junior and mid-level Am Law 100 positions.
While in-house jobs still pay significantly less than law firms, particularly for senior attorneys, you might find these jobs competitive when factoring reduced hours and improved quality of life.
Opportunities for Multiple Streams of Income
In-house jobs reward results over hours. So, an efficient in-house attorney can repurpose extra hours for other income opportunities while working the same or less total hours as they would at a law firm.
I have in-house colleagues who own businesses renting properties, running online stores, coaching junior professionals, and writing books. These pursuits generate income growth potential that they wouldn’t find at a law firm unless they had equity or a generous bonus policy.
I also have colleagues who freelance or work part-time with skills they always had or skills they gained thanks to their newfound extra time. This work provides them income predictability and the flexibility to start and stop work depending on their financial needs.
Gaining Experience for Higher Income Jobs
The road to higher income over time can be paved with a variety of experiences. These experiences are something law firms, with their intense specialization, do not always provide. Going in-house sooner creates variety sooner. Foremost, there is the value of having both law firm and in-house experience. You broaden your perspective and skills and become more competitive for future roles because you are wearing multiple hats beyond “lawyer” and understanding all the facets of your company’s business.
The value of the in-house experience sets you up for larger, higher-paying companies who do not want to train a lawyer on how to practice in-house. Experience in a larger company could open the door to a startup that pays a premium for the risks of leaving a more stable employer. And diverse in-house legal experience could lead to non-legal roles that pay a premium for business-minded former attorneys.
You can even take your in-house experiences back to a law firm and distinguish yourself for higher compensation. You not only offer business-minded skills and insights that are much harder to develop as a traditional associate, but also a potential book of business based on the network you gained while in-house.
While law firms can provide a clear and predictable way to earn income, early in-house experience can offer flexibility and the potential to grow your income in ways that create greater value over time.
Earl Grey (not his real name) is an in-house attorney at a Fortune 500 tech company. You can reach him by email at [email protected].
