2021 was an unprecedented year in the legal industry. Client demand led to a boom in legal hiring unlike anything we had seen. Law firms and corporations were struggling to keep up with demand for lawyers and competing with one another for talent.

As a result, understanding the needs and wants of in-house counsel has never been more important to law firms to retain and attract client work.

With talent at a premium, having insight into the factors that may drive an attorney to go in-house allows the industry to take a hard look at shifts in the landscape and how culture, work-life balance and salary may impact the ability to recruit the talent that law firms need.

With that in mind, Leopard Solutions polled 202 in-house attorneys working for companies in 17 different industries, with those in financial services, pharmaceuticals, health care, manufacturing and technology accounting for nearly two-thirds of respondents. Nearly two-thirds also said their companies have annual revenue of over $1 billion.

The Leopard Solutions General Counsel survey delved into why lawyers go in-house, including how satisfied they are in their current work environment, and if they would consider returning to a law firm, as well as what is most important to general counsel in hiring outside counsel. These revelations can provide law firms with valuable insights into their clients’ needs and help drive internal discussions surrounding business development and client retention

The survey explored:

• Why lawyers go in-house
• How satisfied in-house attorneys are in their roles
• What is most important to in-house counsel when hiring outside counsel
• What types of communication from law firms resonates most with in-house counsel
• The survey also contains insights from Leopard Solutions’ market insights that tracks more than 75,000 corporate attorneys at more than 4,200 firms

Key highlights from our 2021 survey:

• While some attorneys reported beginning to work for a company right after graduating from law school, the highest number made the jump seven years after obtaining their degrees, suggesting that by that point, lawyers either anticipate they will not become partners or they think that switching to an in-house role will allow them to maintain a better work-life balance.
• Based on respondent data, there’s significant staying power for in-house attorneys. 41% reported a tenure of 10 or more years with their current organization.
• Only 12% of all respondents said they would definitely consider returning to a law firm again.
• Just 2% of ethnically diverse attorneys said they would definitely consider returning to a law firm environment.
• Nearly 60% of participants were satisfied with their work-life balance, and 75% felt that their organizations invest interest in their professional development.
• Fifty percent of in-house counsel surveyed firmly state that they would not return to a law firm environment.
• Seventy percent indicated little to no change in the demand for outside counsel, 7.5% have seen a decrease in demand since the pandemic and 22% have noticed an increase in demand for outside service since the pandemic began.
• Based on respondent answers, the primary needs of the in-house counsel have been litigation (51.53%) and corporate/general business law (19.39%).
• When choosing outside counsel, respondents noted qualities such as rapport, diversity, compatible work styles, expertise, value, size, the quality of the work and responsiveness as important factors.
• In-house counsel want their outside counsel to provide value when marketing to them. They are less interested in receiving a press release and more interested in topical webinars. Client dinners and lunches are also important business development tools.

So, how satisfied were in-house attorneys in their current work environment, and would they ever consider returning to law firms?

Last year’s data showed that only a small number of respondents would return to a law firm, when it comes to diverse attorneys. Over half of the survey’s respondents claimed to be satisfied with their work-life balance, and the majority felt that their organizations invest interest in their personal development.

What does this mean for law firms?

• Law firms should be constantly looking for opportunities to add value to clients and potential client relationships.
• Seek out ways to become their go-to source of information and counsel.
• Anticipate their needs and speak to them in their language.
• Make your clients look good at all times.
• Focus more on offering topical webinars and valuable and meaningful content, and less on blanketing them with news releases.
• Consider a “reverse secondment,” where you embed an in-house lawyer at your firm – a win-win for all involved.
• If your lawyers want to go in-house, help them do it – they can then hire you down the road.
• Offer professional development opportunities to your lawyers from the very beginning of their tenure with your organization and help them develop business and client development skills.

In tandem with these findings, the Leopard Solutions 2022 Women Leaving Law report revealed that 66% of women who left Big Law cited that going in-house would be the most enticing career move. Similar to the In-House Counsel survey findings, women left Big Law largely because of lack of career trajectory, poor work-life balance and overall lack of job satisfaction, among more.

So, how satisfied were in-house attorneys in their current work environment, and would they ever consider returning to law firms? Last year’s data showed that only a small number of respondents would return to a law firm, and that number was even lower for the diverse attorneys we surveyed. Over half of participants claimed to be satisfied with their work-life balance, and the majority felt that their organizations were invested in their personal development.

Which factors were most important to general counsel when hiring outside counsel? One respondent stated, "The best law firms and legal counsel are the ones who really help in-house lawyers engage in the practical lawyering for their clients.”

Although legal expertise and responsiveness were the two most prevalent factors when seeking outside counsel, data showed that firms should not underestimate the importance of diversity, integrity, strong communication skills, and networking practices in their client relationships. In addition, with 99% of respondents citing that their organization utilizes outside counsel, the report serves as a resource for outside counsel to understand what general counsel are looking for, and how law firms can implement strategies to become more effective legal service providers.

To continue the research, Leopard Solutions is currently conducting an anonymous 2022 In-House Counsel Survey to gather information on the experiences of in-house counsel, and to offer insight into current practice trends and what general counsel attorneys look for in hiring outside counsel.

Share your experience by taking the Leopard Solutions 2022 In-House Counsel Survey.