In-House lawyers

Opportunities Expand for Students Seeking In-House Roles Immediately Post-Graduation

In the not-so-distant past, advisors encouraged law students interested in pursuing a career in an in-house legal department to gain at least five years of law firm experience first. But, as of late, this trend has started to shift; law schools are now proactively preparing students for in-house roles directly out of school and companies are demonstrating a greater willingness to hire less experienced lawyers. While working at a firm is still the most typical leadoff to an in-house career path—a 2022 survey of in-house professionals found that just 17 percent of the 2,000 plus respondents went directly in-house, while 78 percent had outside firm experience —for students who know that they’re seeking an in-house role, the possibilities are expanding.

A recent LegalDive article highlighted a few of the experiential learning programs currently being facilitated at law schools. We’ve provided a brief summary below: 

Jack Terschluse, a 2019 law graduate of Washington University in St. Louis, quit his job at a law firm after just two years to work for Balto, a tech start-up. “I think in a startup, the opportunities for promotions and different leadership experiences are greater earlier on than they might be at a bigger company because there’s not this big bench of people who’ve been waiting their turn to ascend to that leadership position,” Terschluse said in an interview with LegalDive. Similarly, Phelan Simpkins, intellectual property counsel at State Farm, and 2021 law graduate of the University of Missouri, was able to achieve his goal of an in-house position directly out of law school. He pointed out, also to LegalDive, that recent law graduates shouldn’t underestimate their ability to have an immediate impact in an in-house role. “Having somebody who is coming out of law school who’s had the theoretical training, but not necessarily the practical aspect of it, you’re getting a fresh perspective on an issue of law or how the company manages certain issues, which can be refreshing,” he said.

In-House Lawyers who Attended Top-Ranked Schools Report Higher Compensation

It is well-documented that attending a top law school provides the best return on investment. A recent survey confirmed in-house lawyers who attended a top 20 law program reported earnings significantly higher than those who did not. 

The study, sponsored by the Association of Corporate Counsel and consulting firm Empsight, collected over 2,000 responses from in-house legal professionals. Respondents with a law degree from a U.S. News top 20-ranked school garnered 25 percent more in base salary and 41 percent more in total cash compensation, compared to other lawyers. 

The survey also called out other factors associated with higher compensation: 

  • Legal specialty: Base salaries for lawyers in IP/patent litigation, entertainment, and licensing/royalty practices tended to land above the median salary, whereas those in insurance, government relations, and risk management typically fell below the median. 

  • Firm experience: Lawyers who gained experience at firms prior to moving in-house earned salaries 20 percent higher than those who went directly in-house after graduation (a less common career trajectory). Less than one-fifth of respondents, 17 percent, went directly to in-house work after law school. 

  • Years of work experience: Lawyers who graduated prior to 2000 have salaries that are 45 percent higher and total cash compensation that is 86 percent higher than those lawyers who graduated after 2010.

The survey also collected data on non-compensation benefits. The majority of respondents, 79 percent, reported that their employer offers remote work options. Just under two-thirds, 64 percent, take advantage of the offering by working a hybrid schedule. Twenty-four percent reported that they work fully remote.