As Australia’s financial sector faces increasing regulatory scrutiny and complex legal challenges, hiring managers are re-evaluating their legal strategies.
Traditionally, many firms have relied on external law firms, but a growing trend shows financial institutions shifting towards in-house legal teams. Thomson Reuter State of the Legal Market Report found 62% of financial institutions are now expanding their in-house legal teams.
For hiring managers, the decision to bring legal expertise in-house is strategic - it can reduce costs, improve response times, and ensure deeper industry knowledge within the organisation.
But is it the right move for your firm?
This article explores the key benefits, challenges, and best practices when hiring for in-house legal jobs in financial services.
Related: Why financial firms are rethinking their hiring strategies because of digital transformation
1. Cost efficiency over the long term
Legal fees from external law firms can be unpredictable and expensive. Through creating an in-house legal team, financial firms can manage legal costs more effectively. While salaries for in-house legal jobs can seem high initially, firms often find that over time, these costs are lower than the cumulative expense of outsourcing legal work.
2. Faster, more responsive legal support
When legal issues arise, time is critical. Having an in-house legal team means faster decision-making, better alignment with business goals, and a proactive approach to risk management. Instead of waiting for external lawyers to become available, in-house counsel can act immediately on urgent legal matters.
3. Deep industry expertise
External law firms often serve multiple industries, but an in-house legal team works exclusively within your business. This means they develop a strong understanding of your company’s regulatory environment, risk exposure, and long-term objectives. For financial services firms, this expertise is crucial, as compliance and governance are constantly evolving.
4. Stronger risk & compliance management
Australia’s financial sector has seen tightened regulations from ASIC and APRA, making compliance a top priority. Having a dedicated legal team ensures continuous oversight of regulatory changes, reducing the risk of legal breaches and financial penalties.
5. Enhancing business strategy with legal insights
A well-integrated in-house legal team doesn’t just mitigate risk - it actively contributes to business growth. Legal professionals can offer strategic advice on mergers, contracts, and new market opportunities through working closely with executives.
James Lindsay, Senior Practice Director at Robert Half and specialised financial services recruiter says, "A cost-conscious approach is evident in the legal sphere with firms hiring in-house financial services lawyers with private practice experience to reduce the reliance on external legal fees. In contrast to the cautious hiring practices in the last 18 months, the non-bank lending industry is experiencing a resurgence in hiring, signaling renewed growth and confidence in this sector.”
Challenges of building an in-house legal team
Despite these advantages, hiring managers must consider potential challenges when creating an internal legal team:
Experienced lawyers often start their careers in law firms, and convincing them to transition to in-house legal opportunities requires competitive salaries, work-life balance, and career growth potential.
While larger financial institutions may need an extensive legal department, smaller firms must balance the cost of full-time legal staff versus outsourced legal services.
Some legal issues require external expertise, so even with an in-house team, firms may still need external law firms for specialised matters.
But James offers some advice to overcome these challenges.
“Salaries for hard-to-staff positions, such as senior financial services lawyers and operational risk managers are on the rise. Professionals in these roles may be tempted to accept a new role to secure better compensation, leaving businesses that can’t compete at a disadvantage. Offering flexible work options can help organisations sway candidates as they consider the entire package, not just salary.”
Best practices for hiring in-house legal talent in financial services
For hiring managers considering in-house legal jobs, here are some best practices to ensure a smooth hiring process:
Identify whether you need general counsel, compliance officers, or specialists in financial law.
Ensure salary packages align with industry standards to attract top-tier legal talent.
Highlight professional development opportunities and pathways to leadership.
Work with recruiters who specialise in in-house legal opportunities to find the right candidates.
Legal teams should integrate seamlessly with compliance, risk management, and executive leadership.
“As a specialised financial services recruiter, I know that hiring in-house legal talent within financial services is more than just filling a role; it's about finding a strategic partner who can navigate complex regulations and safeguard your company's future. You want the best person you can possibly find, and we want that for your business too," says James.
"The search can feel daunting, especially when balancing technical expertise with cultural fit, amid a severe skills shortage. Remember, you're not just seeking a lawyer; you're seeking someone who can anticipate risks, communicate clearly, and build trust across your firm. It's a process that requires patience and empathy, recognising that the right candidate will not only protect your assets but also contribute significantly to your company's long-term success."
Is hiring an in-house legal team right for your firm?
For Australian financial services firms, investing in an in-house legal team is a strategic move that offers long-term benefits.
While external legal support will always play a role, having dedicated legal professionals within your company ensures faster decision-making, stronger compliance, and cost control.
If your firm is contemplating hiring for in-house legal jobs, consider your business size, regulatory demands, and budget before making the shift.
“And talk to a specialised financial services recruiter,” says James.
“We can help point you in the right direction when it comes to building your team, and we’ll be there every step of the way to help you develop an in-house legal team for the future.”
With the right strategy, an in-house legal team can be a game-changer for financial services firms navigating Australia’s complex legal landscape.
At Robert Half, we can help you find the right financial services professionals to fill permanent and contract roles.
Find your next hire today.
Frequently Asked Questions (FAQs)
How much does an in-house lawyer make in Australia?
According to the Robert Half Salary Guide, the national average salary range for Legal Counsel roles is between $105,000 and $164,500. See how the salary ranges changes per major city with the salary calculator.
What is the highest paying legal job?
According to the Robert Half Salary Guide, the highest paying legal job is General Counsel, which can have a salary up to $450,000.
How can I move from a law firm to an in-house legal position?
Moving from a law firm to an in-house legal position typically involves networking within your industry, tailoring your resume to highlight relevant business acumen and industry-specific experience, and proactively seeking opportunities through job boards and legal recruiters.
What are the benefits of having an in-house legal team?
Cost efficiency over the long term
Faster, more responsive legal support
Deep industry expertise
Stronger risk & compliance management
Enhancing business strategy with legal insights
