A new Axiom survey finds a retention crisis brewing as almost half of in-house lawyers look for new roles – but most concerning, 56 per cent are considering leaving in-house positions for law firms.
A recent Axiom survey of 544 in-house legal professionals revealed a striking paradox for corporate legal teams: despite high reported job satisfaction, retention risks are escalating rapidly for in-house lawyers.
The 2026 Global In-House Talent Report found that, on paper, in-house legal professionals appear secure and content, with more than 80 per cent of respondents reporting high satisfaction in their roles and nearly all feeling fairly compensated for their work.
However, beneath these seemingly positive and encouraging figures lies a growing concern, with the industry grappling with unprecedented pressures and complex challenges on multiple fronts.
According to the report, 97 per cent of corporate legal teams report difficulty attracting talent, 95 per cent wrestle with multidisciplinary projects, and 77 per cent are coping with rising workloads and increasing complexity.
The “perfect storm” of demands highlighted by Axiom is driving in-house lawyers to reconsider their career trajectories and actively pursue new opportunities.
The report found that pressure is the key driver of retention risk, showing that in-house lawyers experiencing the highest levels of stress are 10 times more likely to be actively seeking new roles.
Of those considering a move, 56 per cent indicated that they would prefer law firms over alternative in-house roles, suggesting that corporate in-house positions are becoming as demanding as private practice and increasingly at risk of losing talent.
Additionally, only 21 per cent of respondents said they would choose another in-house role if they left their current position, while 18 per cent indicated they might leave the legal profession entirely.
Alarmingly, this isn’t a future problem – the retention crisis is happening now, with 46 per cent of in-house legal staff already actively on the job hunt, according to Axiom’s report.
However, the report highlights a potential solution: departments that leverage alternative legal service providers (ALSPS) not only see improved operational performance but also achieve significantly better retention outcomes.
Axiom found that in-house teams leveraging ALSPs have only 14 per cent of staff actively searching for new positions, compared with 28 per cent in teams without ALSP support.
Moreover, engagement scores were significantly higher in ALSP-enabled teams, with 64 per cent fully engaged compared to just 46 per cent in traditional set-ups.
