The changing expectations of the US in-house legal market

The US in-house legal market is evolving as both employers and candidates adjust to new expectations, shifting priorities and growing internal capability needs. Conversations with Jon Coles and John Spinosa highlight how legal departments are responding to these pressures, what legal professionals value today and why international companies operating in the US are rethinking how they structure their legal functions. This is especially true for businesses looking to build or strengthen their in-house legal capability as part of their long-term strategy.

What candidates want from in-house legal roles

Legal professionals are looking for roles that offer more than compensation alone. Jon Coles noted that “purpose driven work is very important, continuous learning, career growth,” reflecting a wider shift in how lawyers assess new opportunities. Today’s candidates want to feel that their work has impact and that their employer supports long-term development within the legal department. 
 
Candidate expectations during the hiring process have also changed. Jon explained that “companies that run transparent and streamlined interview processes are going to attract the best talent,” which highlights how closely hiring experience now links to retention and engagement. Clear communication, alignment on expectations and a well-structured process help employers stand out in a competitive US legal recruitment market. 
 
Younger in-house lawyers are also redefining what success looks like. As Jon observed, “I do not think this generation judge success about just compensation. They judge success on what they are doing, their day-to-day tasks, what they believe in and how passionate they are.” This shift means companies must be prepared to articulate their purpose, culture and career pathways clearly if they want to attract and retain legal talent.

Why European companies with US offices are hiring their first in-house counsel

A growing number of European companies with established US operations are choosing to hire their first American in-house counsel. This reflects the increasing regulatory, tax and employment complexities of operating in the United States, as well as the need to build internal capability within their legal functions. 
 
John Spinosa highlighted one of the biggest early challenges: “One of the most challenging obstacles is the sticker shock that UK companies see when they want to hire their first lawyer.” Many European employers are unfamiliar with US compensation structures, including the cost of healthcare benefits and other elements that increase total headcount investment. As John added, “Usually there is a 20 to 40 percent uptick in regards to compensation. Health care cost is also an issue.” These differences underscore the importance of understanding US legal salary guide benchmarks when entering the market. 
 
Despite these hurdles, the long-term benefits are clear. John noted that many companies decide to hire in-house because “instead of paying a lot of fees in regard to law firms, which are quite expensive here in the US, they come out and try to cut some costs in hiring their first lawyer.” Having an in-house lawyer on the ground allows organizations to manage regulatory change, risk management and day-to-day legal services more efficiently and with closer alignment to business operations.

The shift toward expanding in-house legal teams

Across the US, general counsel and legal leaders are expanding their in-house teams to support business operations more effectively and reduce dependence on external providers. Jon Coles observed that “that is a shift that I think we will see more of next year, the company being less reliant on outside counsel,” which reflects a broader trend across the legal industry. 
 
Companies are increasingly investing in legal transformation initiatives that strengthen internal expertise, streamline legal services and support more sophisticated workflows. As John Spinosa described, “We have seen a number of companies this year go through huge legal transformation projects with regards to creating centers of excellence, having more specialist lawyers, whether that is IP, litigation, M&A.” These developments show how legal departments are becoming more strategic and more deeply embedded in business operations. 
 
These shifts are also influencing how legal professionals think about career development within the wider US legal market. Many in-house lawyers are looking for environments where legal functions are viewed as strategic partners and where legal services contribute directly to business growth. As companies face ongoing regulatory change and rising expectations around governance, the demand for strong in-house counsel continues to increase. This is creating new opportunities for legal roles across sectors and encouraging employers to invest more thoughtfully in how they structure and support their legal departments. 
 
The broader market outlook remains strong. John commented that “I think 2026 is going to be a very active year in all sectors. I think the economy is doing well. The job market is doing quite well,” suggesting continued demand for in-house counsel and specialist legal roles.

What employers should take away

• Communicate purpose, culture and long-term development clearly when hiring legal professionals
• Understand US-specific compensation expectations when hiring in-house lawyers for American operations
• Invest in internal legal functions to reduce dependence on law firms and build long-term capability
• Expect continued growth in specialist roles as legal departments expand across the legal landscape