You've spent the last few months updating your resume, evaluating opportunities, and interviewing. Finally, all of the hard work has paid off, and what you have been waiting for has arrived: an offer to join a company as an in-house counsel. However, while you may feel a sense of relief, accomplishment, and happiness, you may also feel a sense of anxiety and uncertainty. Determining whether to accept an offer and the company for what they are can be as difficult as any decision you will have to make during the course of your career. Here are a few factors to considered when deciding whether or not to accept an in-house offer.1. Compensation. Even if money isn't what gives you the most job satisfaction, no one can argue its importance. Most of us want to make sure we are being paid what we're worth and what the going rate is for jobs similar to ours. You need to conduct research as to whether the offer is in step with market, and obtain information on how your offer compares to what others are making at the same level, in the same industry, with companies of similar size and status, and in the same geographic region.
You need to do some independent research to obtain this information —and unfortunately there is no "one stop shop" to obtain this information. You will need to search the internet, and review surveys published by organizations like Altman Weil, Lexis-Nexis, ACCA, or Corporate Counsel, etc. You may also want to turn to legal recruiters with experience in the in-house legal marketplace. They may be able to provide you with this data, as well as give you information regarding the company's particular compensation structure. If you are already working with a legal recruiter, they may also be invaluable in helping you negotiate your offer where appropriate.
If you are coming from private practice, you may have to bite the bullet and take home a smaller paycheck. The median base salaries for in-house attorneys with a minimum of 5 years of experience remains steady at $100K-$150K per year, with bonuses averaging 20%-30% of base. While deferred compensation, including bonuses, has risen considerably, the majority of national law firm attorneys with 5 years of experience transitioning to traditional in-house staff positions can experience compensation reductions ranging between 50%-70%.
2. Financial Stability. The financial heath and stability of the company you are joining is one of the most important factors to consider. Where is the company heading? Is there a merger on the horizon? Will it be going public? Is it doing well enough financial to ensure its future existence?
The financial stability of a company refers simply to whether it is doing well in business or not. There are various ways that it can be measured, but in the end they all add up to the same thing: is this company in sound financial shape or isn't it? If it is, then the company is probably a quality one that will continue to be viable into the future. If not, well...you may have to seriously re-think your offer.
Large Companies: Most larger companies are publicly traded, and there are various resources around that can help you determine their status in approximate terms. Public American firms are required by the Securities and Exchange Commission to publish certain financial data; it is usually fairly easy to find. What have their earnings been like for the last year? Look at their sales trend over the last year or two as well.
Also look at the stock price: stocks can be volatile, but a steep decline could be a sign that someone is worried about something! Also, check discussions of the company in the various media for any rumblings of potential financial distress: when big companies get into serious trouble, rumors start flying. Just remember that rumors can be unreliable too.
Small & Privately Held Companies: Smaller and privately held companies can be harder to assess. You have to research the company in general terms, look at how long they have been in business, and most importantly, what they are doing now. It is advisable to have in-depth discussions with the business executives about their short and long-term plans, their current funding, and level of activity.
Typically, when small companies get into trouble, their service and reputation begin to seriously suffer, so that's what you want to look for. There usually isn't much more that you can do other than that. Obviously, if you are being offered a General Counsel role, you should ask to review the company's financial statements. However, if you've applied for a staff counsel position, you may have to rely on the good faith of the company's representatives. Private firms aren't required to make public their finances, and they will not likely want to share this information with you.
3. Opportunities For Advancement. In private practice, attorneys move from student to associate to partner. But in-house attorneys don’t have the same clear career path, and opportunities for advancement can be seen as limited. Before you make any decisions, you need to ask the right questions, and do your homework.
Small Legal Departments. If you are joining a small legal department with five or less attorneys, you may find that there is no room at the top, or no room to grow. You may soon realize that the general counsel isn’t going anywhere, and that you may have to move on to move up — unless you want to keep doing the same work year after year, and are willing to wait for that general counsel to step down.
That said, small departments may be better situated to see a greater breadth of legal issues, keeping repetitive work to a minimum, and allocating more repetitive work to outside counsel. You need to have a clear understanding of the work you will be expected to handle, as well as the succession plan, if any, the legal department might have in place.
While you may not be actually changing positions or title in a smaller legal department, you may be more likely to obtain raises. Many attorneys in legal departments that are fairly small or flat, see their paychecks get larger as they get better at their jobs. If title and prestige is not on top of your list, and you are willing to bid your time for the top spot, this may be the right option for you.
Large Legal Departments. Companies with larger legal departments of fifty or more attorneys, usually have more avenues for advancement. They may have a more hierarchical structure to enable its attorneys to move up to more senior roles with more responsibilities and greater levels of compensation. Companies with worldwide operations may also be able to promote its attorneys by making them responsible for a country or geographic area, or for a specific legal subject matter within a region.
Some companies, irrespective of the size of their legal department, may also open up opportunities to its attorneys to move within its business ranks. This is a trend that has become more popular over time, especially as general counsels have become increasingly involved in the business of the companies they represent. There are many more general counsels moving to CEO and COO positions within companies. More junior-level attorneys have made successful transitions to other executive-level business positions. Some companies even offer MBA tuition programs, and other business training to help elevate some of its top attorneys to business positions.
That said, even when a hierarchy exists within the legal department, attorneys often don’t know what skills they need to learn to get to the next level, or what opportunities exist outside the legal department. Therefore, before you make your next move, be sure to discuss your career aspirations with your potential employer, so that they are aware of what opportunities you might be interested in.
If you are operating in a smaller legal department, try to develop business skills that increase your value to the company, and be ready to approach executive management about financing course work or business degrees. Having the flexibility to learn new skills and reinvent one’s self can keep your job challenging and make you available to more opportunities.
3. The People & Culture. Every company possesses a culture that can range from traditional and conservative to entrepreneurial and liberal. This is where the impressions that you formed during your interview will help you determine whether the particular company environment is right for you.
Were people talking to each other when you walked the halls? Were the doors closed or open? Was the staff treated with respect? How did the business executives interact with each other? How do the business executives interact with their attorneys? How formal or informal was the interview? How did people dress? Was the office decorated in traditional oak panels and dull colors, or was it modern, with bright art and lights?
Finding an environment that reflects not only your personality, but also your ability to effectively develop professionally is a key element in your future success as an attorney. Certainly, many attorneys can be happy and thrive personally and professional in completely different environments. What you need to determine is what environment is the right one for you.
Company culture also comprises other factors, including shared attitudes, values, goals, and practices that characterize a company. If you value your time away from the office, a company that consistently requires late hours and weekend sessions may not be right for you. On the other hand, the type of work you seek, the opportunities for growth, and the sophistication of the practice may also translate directly into more hours spent at the office. What you need to determine is whether this is a company that shares your values, goals, and ambitions.
Conclusion. Each of us of course is different, and determining what factors are important may vary greatly depending on the individual. You may attempt to negotiate a higher salary, additional vacation time, and better health benefits. However, these items are often part of a standard package determined by a company’s compensation structure, and you may or may not be able to effectively negotiate them. In addition, other factors, such as a company’s "culture," are also unlikely to change.
The key to making the right in-house move is to do your homework. Each of these factors taken alone may not make or break your decision to accept or decline an in-house job offer. Moreover, these are but a few factors to consider when making a decision. You may also need to consider additional factors that are particularly relevant to your overall professional goals and aspirations.
Whether you choose to accept or reject your job offer, you should contact the employer who made that offer in a timely fashion. Your rejection or acceptance should be done formally, in writing, as well as by telephone. The business community is a small one, and you may at some point develop a relationship with that employer as a superior, a colleague, a client, or even your next-door neighbor. Therefore, irrespective of your decision, one of the most important things you should consider when mulling over a job offer is the importance of safeguarding the relationships that were created during this process.
Remember to keep an open mind, ask questions, do your research, and weigh all the factors carefully. Your dream job might just be around the corner...
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