While lawyers have traditionally worked in private practice before moving to in-house roles, as in-house departments and teams grow in size, higher average salaries and better benefits could be a drawcard for junior lawyers to bypass private practice altogether.
There are a number of longstanding pros to moving in-house, particularly as younger lawyers place higher value on flexibility and faster career progression and in-house teams continue to expand.
According to the College of Law’s Australian Legal Salary Survey 2025, corporate organisations have the highest average salaries in the profession, with an average of $151,989 (an increase of 4 per cent since last year). In addition to having the highest average salaries, practitioners within corporate organisations are the most likely to receive benefits (93 per cent) and tend to get more on average compared to private practice.
These roles are becoming more attractive due to competitive remuneration packages and faster career progression, according to College of Law Queensland director Ann-Maree David, who said that increased opportunities within corporate organisations is having a big impact on lawyers starting their careers.
“It is apparent retaining talent in firms is a challenge, with many lawyers opting for in-house roles earlier due to values alignment, lifestyle preferences, and reduced billable pressure. Traditionally, in-house lawyers were sourced from large corporate firms where they had spent their first post-admission years honing their legal skills. The most sought-after lawyers for corporate roles sit at the three – eight PAQ levels,” she said.
“Today, corporate internships are on offer across a variety of organisations, from banks to accounting firms, to retail and supermarket chains. These opportunities give law students and new graduates the chance to compare the role of an in-house lawyer with that in traditional private practice. Seeing these opportunities earlier does encourage some to bypass private practice initially, if not entirely.”
This is especially true as in-house roles in sectors like finance, tech and energy expand, giving lawyers the chance to “influence corporate strategy, manage risk, and lead digital transformation”, in what David described as a “structural shift” in the market.
These more strategic elements of in-house roles make the move particularly appealing – and in addition to seeing shifts earlier on within legal careers, former GC and JMLG Advisory director Jessica Giampiccolo said contract or seconded lawyers are securing in-house roles without as much private practice experience compared to what was previously required.
“There is a growing trend of lawyers transitioning to in-house roles earlier in their careers. While this can be positive in many respects, the in-house environment is incredibly competitive with the numbers seeking to move into the sector significantly exceeding the number of available opportunities,” she said.
“In the secondment space, there has been a noticeable evolution. Where top-tier private practice experience was once a strict prerequisite, clients are now equally valuing candidates with substantial in-house experience. This reflects a broader recognition of the practical, business-focused skill sets developed in corporate legal environments.”
Law firms offering similar levels of flexibility compared to corporates
Despite competition being high for in-house roles, lawyers are also making the switch back to private practice, with many firms now embracing hybrid models.
While legal recruiters are still seeing high interest for in-house roles, law firms are also offering increased benefits to attract staff.
Dovetail managing director Andrew Murdoch said that from what he’s seen, “the number of lawyers moving from private practice to in-house has reduced since COVID”.
“Some private practice lawyers have always moved in-house and they seldom return to firms; however, this is not a new trend,” he said.
Burgess Paluch director Doron Paluch argued that Burgess Paluch still gets a “far greater response at all levels” to in-house ads compared to private practice; but that there’s not been any significant change in lawyers wanting to move in-house earlier.
“Junior lawyers still see benefit in at least starting a career in private practice. And some general counsel do prefer to hire juniors who have worked at some stage in private practice. Young lawyers are very interested in work/life balance and flexibility as a factor in deciding where to work,” he said.
“But law firms have been aware for some time that they need to break the mould and offer more than just a factory-type environment. Some law firms have talked the talk but been unable to walk the walk. Other firms have indeed made substantial change to become far more employee-friendly. So, I don’t see any possible move by junior lawyers towards in-house roles as a permanent shift in the profession’s career pathway.”
In fact, Paluch said he’s seeing lawyers returning to law firms from in-house roles, as boutiques and mid-tier firms become more “viable” options and are able to compete in terms of salary and benefits.
Many law firms are offering more flexibility and the ability to work from home – and more senior lawyers could earn more than quadruple in private practice.
“Earning capacity is a very big factor. The most any in-house lawyer can usually expect to earn, with exceptions, is about $350k–$450k as general counsel. The equivalent level lawyers are partners at law firms and can often earn $2m+. The difference in earning potential for lawyers at senior level is so dramatic that many lawyers are now deciding to pursue the law firm route,” Paluch added.
“Finally, when lawyers are in-house they only have one main client – their employer. But at law firms they can work for a range of clients – and that diversity and breadth of work prospect is attractive to lawyers who decide to look for law firm options.”
However, for younger lawyers seeking roles which “align with their values” and prioritise balance, perks are “critical” – and David noted that firms are taking notice of this.
“Australian law firms are actively adapting to market trends. Salary packages are competitive when compared to in-house roles and inclusive of more creative benefits,” she said.
“Flexible work and hybrid models are also becoming the standard across the profession, and the doors appear to remain open to alumni, whether they have gone overseas looking for opportunities, or in-house in Australia. The question then becomes one of cultural fit when they return.”
Despite firms keeping up, the ability to take on a more hands-on role in a business offers “valuable exposure” for lawyers and results in a more integrated approach to legal practice, according to Giampiccolo.
“Working closely with the board and executive team to support strategic decision-making and drive organisational success is particularly appealing to lawyers with strong commercial acumen. The opportunity to create a proactive legal department shifting from a reactive, risk-avoidance mindset to one that anticipates challenges, aligns with business goals, and actively contributes to strategy and innovation presents both a challenge and aspiration for the new generation of lawyers,” she added.
“A law degree is now much more of a generalist degree than ever before, with the skills gained transferable across many disciplines. It is this skill set that can see the in-house lawyer flourish by building strong relationships with key stakeholders, understanding strategic goals, operations and expanding the industry landscape, regulations, and competitive environment. This versatility positions in-house legal professionals as integral contributors to organisational growth and resilience.”
Lauren is a journalist at Lawyers Weekly and graduated with a Bachelor of Journalism from Macleay College. Prior to joining Lawyers Weekly, she worked as a trade journalist for media and travel industry publications and Travel Weekly. Originally born in England, Lauren enjoys trying new bars and restaurants, attending music festivals and travelling. She is also a keen snowboarder and pre-pandemic, spent a season living in a French ski resort.
