The Hidden Cost of Burnout in In-House Legal Departments & How to Mitigate It

I’ve spoken to nearly 200 general counsel and local legal leaders in the first quarter of 2024, and the primary message I have heard is “do more with less.” The secondary message is also clear, and easily to relate to: “people are tired.” Time and time again, heads of legal departments describe smaller budget for outside counsel, fewer internal employees to handle an increased workload, and generally fewer operational resources.

In addition, last year showed a growing trend of layoffs across corporate headquarters. As a result, the remaining employees are left to shoulder a heavier workload, leading to a heightened risk of burnout.

Losing the Appeal

Traditionally, in-house legal positions have been attractive to attorneys due to the perceived benefits of a more predictable work schedule, a focus on a single client, and the opportunity to be more closely involved in business decisions. Many attorneys make the switch to in-house roles with the expectation of achieving a healthier work-life balance compared to the demanding billable hour requirements and client pressures often associated with law firms.

However, the recent wave of layoffs across multiple industries has disrupted this equilibrium. As companies seek to cut costs and streamline operations, in-house legal teams have not been immune to the downsizing that has impacted corporations. The unfortunate consequence of these layoffs is that the remaining attorneys are left to absorb the workload of their departed colleagues. This increased pressure can quickly erode the work-life balance that initially attracted them to in-house roles.

The High Cost of Employee Turnover

When any employee reaches a breaking point due to excessive workload and burnout, they may choose to leave their positions. This turnover comes at a significant cost to the company. The process of recruiting, hiring, and training new attorneys is not only time-consuming but also expensive. Moreover, the loss of institutional knowledge and established relationships with business units can have a detrimental impact on the efficiency and effectiveness of the legal department.

In addition to the direct costs associated with employee turnover, there are also indirect costs to consider. Burnout can lead to decreased productivity, increased absenteeism, and decreased morale across the team. These factors can expose the company to risks and potentially damage its reputation.

Strategies for Mitigating Burnout

To address the issue of burnout in in-house legal departments, companies must take proactive steps to support their legal teams. This can include:

• Regularly assessing workload distribution and ensuring that it is equitable among team members.
• Investing in tools and technologies that streamline legal processes and improve efficiency.
• Leaning into contract attorney hiring to reduce workload on the internal team and increase individual bandwidth.
• Encouraging open communication and providing channels for employees to express concerns or seek support.
• Offering professional development opportunities and fostering a culture of continuous learning.
• Promoting work-life balance through flexible work arrangements and generous paid time off policies.

Hiring interim attorneys can also be an effective strategy for reducing burnout across legal departments. When workloads spike due to new projects, transactions, or business operations, contract attorneys can be brought in to help handle the increased demands. Interim attorney hiring can provide additional bandwidth to allow permanent staff to maintain a healthier work-life balance by preventing excessive work hours. Additionally, contract attorneys can be sourced with specialized skills for short-term needs, which may be underrepresented across the in-house legal department. By utilizing contract attorneys judiciously, legal departments can better manage workloads, reduce stress and fatigue, and increase the longevity and engagement of their permanent workforce.

Companies must recognize the high cost of losing full-time employees and take proactive measures to support their legal teams. By prioritizing the well-being of their in-house legal teams and adopting flexible hiring strategies, companies can reduce the risk of burnout and its associated costs. Investing in the retention and development of full-time employees is not only beneficial for the individuals involved but also for the long-term success of the organization.