However, these individuals need to think critically about their long-term career trajectories from the outset, including having a well-thought-out exit strategy.

Speaking with Lawyers Weekly, Freddie Gollan, general counsel for Satellite Office and recipient of the Professional Services Lawyer of the Year at Lawyers Weekly’s Corporate Counsel Awards in 2024, stressed the significance of law graduates establishing an exit strategy early in their careers. He also discussed the challenges that may arise in the absence of such a strategy and shared valuable advice he wished he received earlier in his career regarding the implementation of an effective exit strategy.

The implications of not having an exit strategy

Gollan explained that one of the primary risks for law graduates without an exit strategy is becoming overly specialised in an area of law that has limited future career opportunities.

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“Unfortunately, we ask the most junior of lawyers to choose an area of specialisation with limited understanding on how this may impact what career opportunities are available to them down the track,” he said.

Without a clear exit strategy, Gollan highlighted that law graduates could inadvertently “pigeon-hole themselves” into a niche practice that is difficult to grow and pivot from.

He said: “Take insurance law as an example – it is a significant and exciting industry [that] can expose you to international shipping markets, offshore opportunities, and provide you with expertise in an industry critical to the global economy, but what if you want to pivot in-house into a different industry?

“If the insurance needs of employers in that industry aren’t significant, the paper value of a great candidate with an insurance law specialty may not be as high as an employment lawyer or a corporate lawyer.”

Gollan shared how he faced this dilemma early in his career, stating: “I experienced this myself, having specialised in commercial property law, but not wanting to work for a developer, grocery chain, or a big box retailer – I had to find a role which I could point to as proof to the market that my (let’s face it) relatively jurisdictional skill set was transferable to general commercial practice – ironically, I went to work for an insurer!”

5 key pieces of advice

For law graduates at the start of their careers who wish to implement an exit strategy to help facilitate the development of their desired legal future, Gollan provided essential insights that he wanted to have received in this phase of his professional journey.

Understanding the rarity of becoming partner

Gollan encourages law graduates to set ambitious goals and give themselves something to strive for. However, because fewer partnership opportunities are available, he emphasised that “you need to understand the chances of success” and “once you do, you will understand the benefit [of] not putting all your eggs in one basket”.

Choose your specialisation wisely

According to Gollan, “first impressions matter”, particularly concerning how one’s specialisation is perceived by potential employers. He explained that hiring managers often “have views as to what value a certain specialisation brings to the team”. While such perceptions don’t mean you won’t secure a position, Gollan suggests that “you just have to work harder for it”.

Don’t worry too much about rotations

In law firms, Gollan articulated that it’s unavoidable that you can’t control “the internal processes of the HR department in determining who rotates in which practice group”. He advised law graduates to refrain from worrying too much if they spend “six months in a highly discrete area of law”.

Instead, he encourages these graduates to “lean into it and factor what you learn into your exit strategy [as] you may discover a new passion, or you may learn skills that compliment a broader set down the track”.

Avoid departing the firm too soon

Gollan advised law graduates to commit to their chosen area of practice for “at least four years” before considering a career transition, as lawyers possessing “four [to] eight years of experience are in high demand”.

He detailed that this is the case because “the market views them as technically capable, self-managers, and requiring less on-going structured training than more junior colleagues – in-house teams can run lean, and struggle to provide this ongoing training”.

Carefully plan your exit strategy

Gollan recommended that law graduates should give themselves “the luxury of time” when searching for a job, even if they’re not actively looking to leave, as “you will have a better chance of avoiding a poor career move”.

Additionally, he advised engaging with a recruiter at an earlier stage, as it “allows them to understand your motivations for moving, help you focus your search, reach out to their networks, and work with you to make sure you have control over your career path”.

Shifting the mindset around exit strategies

Despite the benefits of having an exit strategy, Gollan acknowledged that the concept is often overlooked, largely because “what junior lawyer will be inspired by being told they probably won’t make partner during their grad program?”

To shift this mindset, he suggested that law firms could do more to help law graduates navigate their careers and understand their long-term career prospects.

For instance, Gollan noted that “it is a great idea for law firms to bring back alumni that are currently in-house to talk during grad programs about their career paths – in-house lawyers who feel supported by the firm in their career are often the clients of tomorrow”.