The EMEA Legal Department Benchmarking Survey 2013 reveals 24% of in-house teams have already made hires this year, and a further 40% expect to add to their team over the next year.*
A greater emphasis on dealing with finance and regulatory issues in-house rather than using external firms is a key reason. Fifty one per cent of departments said they would be bringing regulatory issues in-house this year compared with 31% in 2012. In terms of finance, departments are increasingly bringing areas such as insurance and reinsurance (30% up from 14% in 2012), banking and finance (24% up from 14%) restructuring and insolvency (17% from 11%) and tax (17% from 8%) in-house.
Areas brought in-house by legal departments 2012-13
The report shows almost twice as many lawyers (30%) expect internal budget increases as expect external rises (18%) over the next year. Likewise, 36% predict a decrease in external budgets, compared with 24% who predict a decrease in internal spend.
Naveen Tuli, Global Managing Director of Laurence Simons said:
“Legal departments bringing more work in-house reflect a desire for greater control and certainty as a fixed workforce allows for better forecasting of budgets. Many are making the decision that hiring extra permanent staff is more cost effective in the long run than continuing to outsource the work to law firms. The new regulatory and financial landscape also places these areas at the core of any corporation, where in-house teams can provide extensive internal knowledge which isn’t gained from placing the work externally.”
Greater internal hiring would continue the trend seen over the past year, as the average size of an EMEA legal department grew from 10.5 lawyers in 2012 to 12 lawyers in 2013, and has risen worldwide from 39 lawyers in 2012 to 53 in 2013.
When asked where they would deploy one extra team member, 54% of respondents said they would recruit in Europe, 22% in the UK, 10% in Asia and 8% in America. In terms of business areas, 44% would hire into corporate and commercial, 12% in regulatory and compliance, 10% into a general role and 6% into both contract and finance/insurance.
Currently, corporate and commercial dominates in-house activity with 86% of departments managing this where they can. Bribery/corruption/compliance (64%) and intellectual property (55%) round out the top three.
Veta T. Richardson,
president and chief executive officer of ACC said:
"Traditional areas continue to dominate in-house department workloads, and those looking to make hires are recruiting for these specialities. However, reflecting the expanded brief of in-house teams, regulatory and compliance are also coming to the fore globally due to measures such as Basel III and Solvency II and there is also appetite for generalists who can switch between areas with ease."
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*About EMEA Legal Department Benchmarking Survey
In spring 2013, Laurence Simons and Association of Corporate Counsel invited law departments to complete a benchmarking survey about their teams in Europe, the Middle East and Africa (EMEA). At the end of the research process, 182 legal departments had responded to the survey. General counsel accounted for the largest body (51%) completing the survey, followed by deputy/regional general counsel (19%) and legal counsel (18%). Of the remaining 12%, the largest single body of respondents were heads of regulatory affairs, or chief compliance officers. The companies represented were headquartered across the world, with 58% in Europe, 21% in North America, 12% in the UK, 5% in the Asia Pacific area, 2% in Russia and 1% in Africa and the Middle East.
To request a copy of the full report, please contact Jane Holland, FiveTen Group on 020 7858 2022 and email@example.com
ABOUT LAURENCE SIMONS
Founded in 1988, Laurence Simons is a specialist legal recruitment consultancy. Laurence Simons covers the whole spectrum of permanent and temporary legal positions in both the Private Practice and In–House markets from Newly Qualified through to Partner and General Counsel level roles.