How lateral hiring works
A lateral hire arrives with years of experience, a current salary and a notice period to serve. HR and the hiring manager fix the level by comparing the candidate's actual work with your grade structure, not by their current designation, because titles vary between companies. A 'manager' at a 40-person firm may map to a senior executive grade in yours. The offer is usually built on current pay plus a hike, and the joining date depends on how long the candidate must serve at the current employer.
Benefits and risks
Lateral hires bring skills the company has no time to build: a plant head who has run a similar line, or a credit manager who knows the regional market. They become productive faster than freshers. The risks are cost, delays while the notice period runs, counter offers from the current employer, and friction with internal staff who were passed over. Pay parity is the common trap: a lateral hire may join on a higher salary than a loyal employee doing the same job, which hurts morale if nobody addresses it.
Good practice for lateral hires
The first six months decide whether a lateral hire settles in. A named buddy, clear KRAs from the first week and an honest probation review with the reporting manager help an experienced person adjust to your systems and culture.
- Consider internal candidates first, and tell them why if they were not chosen
- Map the candidate to your grade and salary band, not to their current title
- Verify experience and last salary through documents and reference checks
- Plan for a counter offer and stay in touch through the notice period
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What is a lateral hire in a company?
A lateral hire is an experienced professional recruited from another company into a role at a similar or higher level, rather than a fresher or an internal promotion. The term is widely used in Indian IT, banking, consulting and law. Lateral hires join at a grade matched to their experience and skills.
What is the difference between lateral hiring and campus recruitment?
Campus recruitment hires students or fresh graduates, usually in batches, into entry-level roles with training. Lateral hiring recruits people with work experience, one at a time, into mid-level or senior roles. Campus hires cost less but take longer to become productive; lateral hires cost more, serve notice periods and may receive counter offers.
How do you decide the salary for a lateral hire?
Start from your salary band for the role's grade, then weigh the candidate's current pay, skills and the market for that role. Avoid offering far above what internal staff in the same grade earn, since visible gaps cause resentment. Record the reasoning, and verify current pay through recent payslips before you finalize the offer.