What is Lateral Recruitment?

Lateral recruitment is the practice of hiring a person who already has a similar role and level of experience at another company. This method focuses on finding people who can do the job immediately without needing much training.

Key Takeaways

• This process involves hiring experts for roles they already hold elsewhere.
• It helps you find people who are ready to work on day one.
• You can save time and money on training by hiring experienced staff.
• It is a common way to hire for senior or specialized roles.
• This method often targets passive candidates who are not actively looking for work.

Detailed Explanation of the Process

Lateral recruitment happens when you look for a new employee who has the exact skills you need. These people usually work for your competitors or in the same industry. They are not entry-level workers. Instead, they are seasoned professionals.

When you use this method, you are looking for a "horizontal" move. This means the person is moving from a job at one company to a similar job at your company. They are not looking for a promotion or a higher title in most cases. They might want a better work environment, higher pay, or different benefits.

The steps for this process usually include:

1. Identifying the specific skills your team lacks.
2. Finding professionals who currently hold those roles at other firms.
3. Reaching out to these people directly, often through social sites or headhunters.
4. Showing them why your company is a good place to work.
5. Checking their background and past work results.
6. Making an offer that matches their experience level.

This type of hiring is different from "vertical" hiring. In vertical hiring, you might promote someone from within your company to a higher role. You might also hire someone from outside who is looking to move up the career ladder. Lateral hiring stays on the same level of the ladder.

Why Lateral Recruitment Matters

This method is important because it helps you fill gaps in your team very quickly. When you hire someone who already knows the job, you do not have to teach them the basics. This saves your company a lot of effort.

Here are some reasons why this method is useful for your business:

• Lower Training Costs: You do not have to pay for basic training classes. The new hire already knows how to use the tools and follow the industry rules.
• Immediate Productivity: The new employee can start contributing to projects right away. They do not need months to learn the ropes.
• New Perspectives: Hiring from a competitor brings new ideas to your office. These people know what works well at other companies.
• Industry Knowledge: These candidates already have a network of contacts. They know the customers and the market trends.
• Reduced Risk: Since the person has already done the job successfully elsewhere, there is less chance they will fail at your company.

Many businesses find that this approach is the best way to grow. If you need to start a new department, you can hire a leader who has done it before. This makes the transition much easier for everyone involved.

Common Usage and Examples

You will see this type of hiring in many professional fields. It is very common in jobs that require special licenses or many years of study.

Here are some common examples of how you might use this:

• Law Firms: A law firm might hire a partner from another firm. This partner brings their own clients and years of legal knowledge.
• Technology Companies: A software company might hire a senior developer from a rival firm. This developer already knows the coding languages and project styles used in that industry.
• Hospitals: A medical center might hire a surgeon who has a great reputation at another hospital.
• Accounting: An accounting firm might hire a tax expert who specializes in a certain type of law.
• Sales: A business might hire a sales manager who has a long list of contacts in a specific market.

In these cases, the company is looking for a specific set of skills. They do not want to wait for a junior employee to learn these skills over several years. They need the expertise now.

Synonyms and Antonyms

To understand this term better, it helps to look at similar and opposite words.

Synonyms:

• Lateral hiring
• Horizontal recruitment
• Experienced hiring
• Professional sourcing

Antonyms:

• Vertical recruitment
• Campus recruiting
• Entry-level hiring
• Internal promotion
• Graduate hiring

Related Concepts

There are several other terms you should know if you are looking into this topic. These concepts help explain the bigger picture of how companies find talent.

• Headhunting: This is the act of looking for specific people to fill high-level roles. Many lateral hires start with a headhunter making a phone call.
• Passive Candidates: These are people who have jobs and are not looking for new ones. Most lateral hires are passive candidates. You have to convince them to leave their current role.
• Talent Acquisition: This is the long-term plan for finding and hiring great people. Lateral hiring is one part of a good talent acquisition plan.
• Employee Value Proposition: This is what you offer to a candidate in exchange for their work. Since lateral hires already have good jobs, your offer must be very strong.
• Poaching: This is a slang term for hiring someone away from a competitor. While it sounds negative, it is a normal part of the business world.

Frequently Asked Questions

Is lateral recruitment expensive?

It can be more expensive than hiring a junior employee. You often have to pay a higher salary to get someone to leave their current job. You might also have to pay a fee to a recruiter. However, you save money on training and you get results much faster.

How do I find candidates for lateral roles?

Most managers find these candidates through professional social networks. You can also ask your current employees for referrals. Sometimes, hiring a professional search firm is the best way to find the right person without making it public.

What is the biggest challenge with this method?

The biggest challenge is cultural fit. Even if someone has the right skills, they might not like the way your company works. It is important to interview them for their personality and values as well as their technical ability.

Does this hurt the morale of my current staff?

It can if your current employees feel they are being passed over for promotions. You should make sure your team knows why you are hiring from the outside. Explain that the team needs a specific skill that no one else has yet.

How long does the process take?

It often takes longer than normal hiring. Because these candidates already have jobs, they are not in a rush. They will take their time to think about your offer. You may need several weeks or months to find and sign the right person.

Should I always use lateral recruitment?

No, it is just one tool in your kit. You should also focus on training your current staff and hiring new graduates. A healthy company has a mix of experienced leaders and new talent who are eager to learn.

What should I include in a lateral job offer?

You should include a competitive salary and good benefits. You might also offer a signing bonus. Flexible work hours or a better title can also help convince an expert to join your team. Make sure you highlight the unique parts of your company culture.

How do I check the skills of an experienced hire?

You can use behavioral interview questions. Ask them to describe specific problems they solved in their current role. You can also speak with their professional references to verify their past performance.

Can small businesses use this method?

Yes, small businesses can benefit a lot from hiring experts. One experienced person can help a small company grow much faster than three junior employees. It helps the small business compete with much larger firms.

What is the difference between a lateral move and a promotion?

A lateral move keeps the person at the same level of authority and pay. A promotion moves them to a higher level with more responsibility. Lateral recruitment focuses on the move between companies at the same level.