What is lateral hiring?

The term is used most in law firms, consulting, banking and in Indian corporate hiring, where “lateral” distinguishes experienced hires from campus or fresher hiring. A lateral associate at a law firm, for example, joins from another firm at a comparable seniority, often bringing specialist expertise and sometimes clients. In technology and other industries, lateral hiring usually means bringing in people who can be productive quickly because they have done a similar job elsewhere.

The advantages are speed to productivity, new skills and ideas, and the ability to build a capability (a new practice area or product line) faster than training people internally. The costs are typically higher pay than an internal promotion, cultural fit risk, possible restrictions from the candidate’s previous employer such as notice periods, non-solicitation clauses or confidentiality obligations, and the effect on internal staff who may have wanted the role.

Assessment matters more than it seems. Experienced candidates are good at describing their past work, and their CVs carry the strength of their previous employer’s brand. Test what they can do in your context: a structured interview focused on specific past decisions, a realistic work sample or case drawn from your own work, and thorough references. Check notice periods and any restrictive covenants early so start dates are realistic.

Lateral hiring works best alongside internal mobility, not instead of it. Advertise roles internally first, or at the same time, and be ready to explain why an external hire was chosen.

Also called: lateral recruitment, lateral hire, experienced hire.