Working In-House vs Private Practice: How Do They Compare?

If you're considering a transition between private practice and in-house legal roles, it's essential to understand the key differences and similarities between these career paths. 

Working in-house has become an increasingly attractive option for lawyers, with many making the shift - and some even moving back into private practice.

This article explores the main contrasts between these roles to help you determine which might be the right fit for your professional goals.

One Client vs Many

In an in-house role, your sole client is your employer—the organisation itself. Your primary interactions will be with its executives, managers, and employees, who represent the "legal person" of the company. This setup allows you to develop a deep understanding of the business, often far beyond what external lawyers can achieve.

While private practice offers exposure to a broader range of clients and industries, the in-house role compensates with the opportunity to become intricately involved in the business’s operations, its people, and its evolving needs over time.

Generalist vs Specialist

Private practice lawyers typically specialise early in their careers, becoming subject-matter experts in areas such as litigation, intellectual property, or employment law.

In-house lawyers, however, are often generalists, addressing a wide array of legal issues within their organisation. Although larger in-house teams may have specialists, the role frequently requires adaptability and versatility, akin to a general practitioner in medicine.

Senior in-house lawyers often step further from technical legal work, taking on responsibilities such as team management, business operations, and strategic decision-making.

High Client Contact

In-house lawyers are embedded within their organisation, leading to frequent and informal interactions with their clients—managers and employees. Conversations often happen over a desk, in meetings, or even through quick emails. This proximity fosters strong relationships but can also bring challenges in managing the volume and variety of requests.

Private practice lawyers, while also maintaining client relationships, operate with more formal communication processes, often necessitated by the nature of their external advisory roles.

Seeing the Bigger Picture

One of the biggest draws of in-house roles is the opportunity to see the tangible impact of your work. You’ll not only help navigate legal challenges but also contribute directly to the company’s growth, risk management, and strategic objectives.

In contrast, private practice lawyers often focus on specific matters without seeing their advice’s long-term implications or its integration into the client’s broader business strategy.

Practical, Not Just Legal

In-house lawyers are expected to provide practical, business-oriented advice. Reports are often concise and focused on risks, solutions, and business impact rather than detailed legal analyses.

This skill—simplifying legal jargon and translating it into actionable guidance—is crucial. While private practice lawyers also tailor advice for business clients, their work is often more formal and detailed by nature.

Billing and Time Recording

Private practice lawyers are accustomed to billing targets and meticulous time recording. One attraction of moving in-house is often the promise of leaving this behind.

However, some in-house teams do track time and may even allocate costs to internal departments.

This practice can help clarify legal costs, aid budgeting, and justify resource allocation, but it also comes with administrative overheads and potential downsides, such as discouraging departments from seeking legal advice early.

Resources and Technology

Law firms generally have access to extensive resources, such as advanced research tools and dedicated support teams, which may not be available to smaller in-house teams. In-house lawyers often have to adapt to the organisation's existing systems and platforms, which may not be tailored to legal needs.

That said, General Counsels are increasingly recognising the value of investing in tools to enhance collaboration, workflow management, and cost tracking within their teams.

Learning and Development

In private practice, professional development focuses heavily on building deep legal expertise, often within a specific niche. In contrast, in-house lawyers must also develop knowledge of their organisation’s industry, operations, and strategic goals.

For senior in-house lawyers, leadership, business acumen, and interpersonal skills are just as important as legal expertise. Many organisations offer opportunities for in-house teams to participate in general business training and cross-functional initiatives, further broadening their skill sets.

Career Progression

Private practice often follows a structured path, with partnership as the pinnacle. For those seeking alternatives, roles such as Legal Director offer progression without the pressures of partnership.

In-house teams, particularly smaller ones, often have flatter hierarchies. This can make upward mobility challenging, but opportunities for career development can come through role rotation, involvement in high-impact projects, or expanding responsibilities.

For ambitious in-house lawyers, moving to a new organisation or industry may be necessary to achieve significant career advancement.

In-house and private practice roles offer distinct advantages, challenges, and career trajectories. In-house roles provide proximity to the business, the chance to see the broader impact of your work, and a more generalist approach, while private practice offers specialisation, a variety of clients, and a focus on technical expertise.

Ultimately, the choice depends on your personal preferences, career aspirations, and the kind of professional environment in which you thrive. Both paths can be equally rewarding for those who embrace their unique opportunities.

Explore W&P Partners’ essential resources for in-house legal professionals! Download our latest Legal Salary Report to uncover current trends and benchmarks, helping you stay informed and competitive in today’s market. Ready to take the leap from private practice?

Our exclusive whitepaper, “Transitioning from Private Practice to In-House Roles,” provides actionable insights and expert guidance to help you navigate this pivotal career move with confidence. Access both resources now to empower your career journey!