Corporate legal departments are grappling with burgeoning workloads, increasingly complex regulatory demands, and mandates from their companies to handle these challenges with fewer resources. And the pressure is taking a significant toll on in-house lawyers and their mental health.

In a recent Law.com and ALM Intelligence Mental Health Survey, 63 percent of in-house lawyers reported feeling physically and mentally overwhelmed by their jobs. “Eighty-three percent said they believe their work environment has contributed to their issues, with 60 percent saying the push for leaner teams has impacted their mental health, and 63 percent saying understaffing has negatively affected their well-being,” the survey said.

Smaller and midsize law firms may be perfectly positioned to help their in-house colleagues. Firms with agile, focused teams can serve as key partners in lightening the load, particularly for those corporate legal departments in overburdened roles like litigation or regulatory compliance.

Lightening the Load

One key advantage smaller and midsize firms bring to the table is flexibility. Unlike larger firms that may have rigid processes and higher price points, midsize and smaller firms often have the ability to tailor their services to the specific needs of in-house teams. Given the increasing pressure to maintain legal department budgets, law firms that can offer efficient, targeted support for specific legal issues can become valuable extensions of the in-house department.

How much pressure are in-house counsel facing to rein in costs? According to the Association of Corporate Counsel’s 2024 Chief Legal Officers Survey, 42 percent of CLOs reported their department had faced budget cuts in the past year, while nearly 60 percent were simultaneously dealing with rising outside counsel rates. Nearly a quarter of CLOs said these pricing increases were difficult to manage.

The results highlight the importance of pricing transparency and flexible fee structures when working with in-house counsel. Smaller and midsize firms may be able to differentiate themselves by offering value-based pricing models that align with in-house departments' financial constraints. For example, offering flat-fee arrangements or retainer-based pricing for recurring legal work allows in-house teams to better manage their budgets while still receiving high-quality legal support.

These alternative pricing models not only provide predictability for in-house counsel but also build a stronger, long-term relationship between the law firm and the corporate client.

Building a Strategic Partnership

Focusing on efficiency and technology adoption can help as well. Investing in legal technology that streamlines document review, contract management, or compliance checks can help midsize firms deliver services more efficiently, reducing billable hours while maintaining high standards of quality.

For smaller and midsize law firms, simply serving as outsourced labor for an overburdened legal department isn’t enough. To truly relieve the stress on in-house counsel, firms need to position themselves as strategic partners capable of providing proactive legal solutions.

This involves not only assisting with the workload but also helping in-house teams navigate broader challenges such as regulatory changes, litigation risks, and business pivots. In many cases, this means offering more than just legal advice. For example, firms can help implement legal technology solutions that streamline workflows or provide training on key regulatory developments that affect the in-house team’s day-to-day work.

Building this type of value-added relationship strengthens the partnership and ensures that the law firm is seen as an indispensable part of the in-house counsel’s overall strategy for managing legal risk.

Actionable Steps for Law Firm Leaders

To effectively position themselves as indispensable to in-house teams, smaller and midsize firms might:

1. Adopt flexible pricing structures: Offer flat fees, retainer-based services, or value-based pricing that helps in-house counsel manage their legal spending more predictably.

2. Leverage technology to drive efficiency: Invest in tools that automate routine legal tasks, reducing time spent on low-value work and keeping costs manageable.

3. Focus on specialization: Develop expertise in key areas such as compliance, intellectual property, and regulatory law, where in-house counsel often require specialized assistance.

4. Create a partnership mindset: Position the firm not as an outsourced provider but as a strategic partner capable of helping in-house teams navigate their biggest legal challenges.

Offering relief to in-house counsel requires more than simply handling overflow work—it involves anticipating future challenges, providing tactical insights, and consistently delivering value. Law firms that adopt this forward-thinking approach will not only ease the burden on in-house teams but also position themselves as essential contributors to their clients’ long-term success.

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