Lateral recruitment is an exercise of sourcing and hiring competent candidates from an external talent pool in an organization. It is a specialized recruitment process that involves recruiting an expert with relevant work experience for positions that can be niche, executive, or specialized. Organizations recruit experienced professionals with interpersonal, cognitive, and leadership skills through lateral hiring.
Lateral hiring differs from regular hiring as the hires typically bring specific work experience. Candidates considered for the positions possess the requisite skills and expertise. They seek a workplace that allows them to thrive and further their career growth.
Lateral hiring refers to hiring individuals for a role that is the same (or similar) as their current role. The term ‘lateral’ refers to horizontal movement from one side to the other. Thus, when an individual moves from one organization to another in the same role, it’s called lateral hiring. A lateral hiring example is hiring a marketing manager from another organization as a marketing manager in a new organization.
The benefits of lateral recruiting are manifold. Some of them are:
Lateral recruiting applies to any organization or industry, but it is particularly beneficial in highly competitive sectors where specialized knowledge is crucial for success. It can also be advantageous during business expansion or transition periods, such as mergers with other companies. Bringing in a lateral hire with the necessary expertise in the field helps navigate these uncertain processes, ensuring competitiveness, and achieving business goals.
When announcing the expansion or merger, appointing a lateral hire with a proven track record of successful mergers helps instill confidence in shareholders and stakeholders. In other situations, a lateral hire may be the preferred choice when filling a recently vacated position with an expert and when no suitable candidates are available within the organization’s talent pool.
An HR executive should manage the lateral hiring process in close collaboration with the executive team once the position has been clearly defined. These roles require precise knowledge and skills, and the top management possesses the relevant details of the requirements. Therefore, HR managers must be well-informed about the role’s requirements, the company’s business goals, and the compensation and benefits that can be offered to potential candidates.
The lateral hiring process can be explained in seven steps. They are:
The first step is clearly defining the company’s needs by establishing goals and determining how a lateral hire can contribute to achieving them. Additionally, specifying the role and listing the required skills and expertise is crucial; the ideal candidate should have a deep understanding of the field, anticipate challenges, and know how to address them.
The second step is thoroughly researching possible candidates because lateral hires may not actively seek new opportunities. It is advisable to expand the search beyond local geographical boundaries and explore candidates who have recently been recognized for their achievements, contributed to the field through publications and participation in industry events, and have a strong reputation. Shortlisting candidates based on their track records and success stories and conducting comprehensive investigations to gain deeper insights into their work ethic and ability helps handle challenges in attracting the ideal candidate.
The third step highlights why the new company is better than the candidate’s current employer. Focusing on the organization’s specific perks, its values and mission, and the potential for exciting career growth opportunities can help attract the candidate. In addition, it is helpful to create a position tailored to the candidate’s expertise and provide unique projects that align with their proven track record, along with a compelling offer that showcases the advantages of joining the company.
The fourth step is to contact candidates discreetly, as they are established figures in their current workplace and may not actively seek new roles. It is advisable to approach them delicately, introducing oneself, and expressing interest in discussing a career opportunity. It is necessary to avoid requesting CVs or engaging in detailed questioning.
The fifth step is to negotiate by presenting a compelling pitch that attracts the candidate to join the organization. HR can offer a competitive compensation package similar to or better than their current one and emphasize the opportunity to work in a challenging role where they can excel and be creative. Motivating factors beyond remuneration can be influential in their decision-making process.
The sixth step is to make a timely offer once the candidate expresses interest. HR must act swiftly to prevent the candidate from losing interest or reconsidering their decision. They must ensure the offer meets the candidates’ expectations and consider providing additional incentives to seal the deal.
The seventh step is strategically onboarding lateral hires to ensure successful integration into the team and the company. While they may require less training for their job, it is crucial to immerse them in the organization’s culture and values. Proper onboarding is essential for retaining lateral hires and maximizing the benefits of their expertise.
Hiring managers seek talent with the potential to take up leadership roles who are agile learners with domain expertise. However, hiring managers often experience challenges in finding the most suitable talent.
Structuring the lateral hiring process ensures minimizing the recruitment cost and improving the efficacy of the hiring process. Some of the ways to streamline the lateral hiring process include:
Pre-screening entails shortlisting candidates from a pool of CVs based on the job role. HR bots automate the pre-screening process, saving time for HRs and providing candidates with instant job-related updates.
HRs need a clear job description to create a competency framework that assesses employee performance and promotes a transparent work culture. Expert guidance can be sought to build frameworks for different job roles. The framework includes a mix of behavioral attributes, cognitive ability, and domain expertise, which form the pillars of a competency framework.
Simulators are crucial in assessing candidates’ skills and knowledge. Coding simulators evaluate coders’ potential and problem-solving abilities, while case study simulators measure candidates’ approaches to real-world business situations. They save time and manual effort as they can auto-complete features and enable hiring managers to mark candidates on predefined parameters.
A structured interview process, supported by video interview tools and simulators, streamlines the selection and recruitment cycle. Competency-based interviews ensure effective evaluation, reducing biased or subjective decisions. A structured process reduces the turnaround time and saves time and cost.
Data analysis enables targeted recruitment and selection, providing employers access to a rich talent pool. Predictive analysis enhances visibility for hiring managers, and SMEs can help improve understanding of lateral hiring data. Once an industry benchmark has been set, the performance of candidates on various assessments can be rated based on the time taken and performance in different sections of the evaluation.
Mercer | Mettl assists in every step of the lateral hiring process with an extensive range of solutions for streamlining, enhancing, and scaling the overall lateral recruiting cycle.
Mercer | Mettl’s SMEs thoroughly understand organizational requirements for developing frameworks that align with the organization’s ideology. It enables organizations to develop competency frameworks at the organizational and job-role levels. Once HRs have built a relevant talent pool, they can roll out assessments for various job roles.
Given the diverse needs of various industries, Mercer | Mettl offers a range of simulators to test the technical know-how of potential hires.
Coding Simulators enable HRs to grade candidates on predefined parameters and test the coding expertise of candidates. Meanwhile, case study simulators test how candidates would perform if met with a challenging situation at work. Candidates are marked based on their assumptions and approach to solving the case given to them.
Furthermore, the Structured Interview platform assists HR in making the lateral hiring process seamless, engaging, and user-friendly. It allows faster hiring and scheduling of interviews, provides competency-based questions and lets organizations make data-backed decisions. Interviewers no longer need to travel for in-person interviews or pen-and-paper tests, as video interviews have built-in simulators to assess a candidate’s skill set.
The structured hiring platform collects and analyses data into actionable insights for the hiring manager to make relevant hiring decisions.
Lateral hiring is an effective strategy for companies seeking to enhance their workforce and stay competitive in today’s ever-changing business environment. This step-by-step guide to lateral hiring provides a practical and straightforward approach for organizations looking to attract and onboard experienced professionals outside their company. By following these steps, companies can simplify their hiring process, identify suitable candidates, and ensure a smooth transition for new hires. From clearly defining the hiring needs and creating an appealing job description to conducting thorough interviews and negotiating offers, each step has a crucial role in the success of lateral hiring. By implementing these strategies, organizations can tap into a broader talent pool, bring fresh perspectives to their teams, and drive innovation and growth.
Originally published March 27 2020, Updated June 12 2024
Archita Bharadwaj has worked as a Content writer at Mercer | Mettl since April 2023. With her research background, she writes varied forms of content, including blogs, ebooks, and case studies, among other forms.
Behavioral Competencies
Cognitive Competencies
Coding Competencies
Domain Competencies
