Lateral hiring, commonly called external hiring, is the procedure of locating employment applicants outside the company. In contrast, internal hiring entails promoting or moving current employees to fill open positions within the company. Lateral hiring is frequently utilised to bring in people with specific talents or expertise needed inside the organisation to fill jobs ranging from entry-level to senior leadership roles.

When a corporation has to fill a job with a candidate with particular abilities, knowledge, or experience that isn’t already present inside the organisation, lateral hiring is frequently done. For instance, if a company is entering a new market or line of products, it might need to recruit someone with relevant experience.

There are several ways to undertake lateral hiring, including job fairs, employee referrals, recruitment firms, and Internet job advertisements. The recruiting process often entails reference checks, interviews, and qualification screening of candidates. A staffing solution is a method or strategy that a company employs to handle its hiring requirements. Numerous techniques, such as internal promotions, lateral hiring, temporary employment, and outsourcing, can be used as part of a staffing solution.


In this section of the article, we have tried to comply with a few benefits of lateral hiring. The benefits are mentioned as follows: 

  • Analyses of job: Performing a job analysis entails determining the precise knowledge, abilities, and experience needed for the role and producing a job description.
  • Finding suitable candidates: Finding candidates through numerous channels, including job advertisements, employment firms, employee recommendations, and social media.
  • Screening candidates: candidates are screened by looking over their resumes, cover letters, and other application materials to see if they have the necessary training and experience.
  • Reference and background checks: Verify the candidate’s credentials, employment history, and a criminal record by checking references and conducting background checks. Job offer and onboarding: Making the offer of employment to the chosen candidate and providing onboarding and training to aid in their integration into the organisation.
  • Job offer and onboarding: Offering the chosen candidate the position and assisting with onboarding and training to aid in their integration into the company.

A thorough awareness of the organization’s needs as well as the qualifications needed for the open job is essential for effective staffing in lateral hiring. To find and draw in the top job candidates, a well-organized and effective recruitment procedure is also necessary.


The organization’s unique objectives and goals, as well as the availability of eligible applicants, must be considered when selecting the best staffing option. Some typical staffing options are:

  • Internal promotions: These entail elevating or moving current workers to a position of greater responsibility within the company. This is a practical, affordable approach that may improve retention and staff morale.
  • Recruiting and hiring new staff from outside the company to fill a vacancy is known as lateral hiring. Although it may be more expensive than internal promotions, this might provide the company with new views and abilities.
  • Hiring temporary workers to cover short-term employment needs, such as seasonal work or special projects, is known as temporary staffing. This helps to save quite some money.
  • Outsourcing: This is signing a contract with a third-party business to deliver personnel services, such as payroll or human resources. This may be a cost-effective option, but it may also lead to less control over the calibre of the job and lower morale among the workforce.

The organization’s objectives, spending limit, and resources available must all be carefully taken into account while selecting the best personnel option. It’s critical to choose a solution that can efficiently address the organization’s workforce demands while also integrating with its values and culture.


Although lateral hiring provides numerous advantages for an organisation, there are also some possible drawbacks, such as:

  • High cost: Because external applicants would need additional training and onboarding, lateral hiring may be more expensive than internal promotion. To recruit elite people, the organisation might also need to provide greater remuneration.
  • A lengthier onboarding process may result in new external recruits needing more time to adjust to the organization’s culture, policies, and procedures.
  • Cultural mismatch risk: Recruits may not fit into the organization’s culture, which might harm staff morale and productivity. Additionally, it could take longer for external personnel to fit in with the team and develop ties with current workers.
  • Reduced employee loyalty: If an organisation frequently hires from outside rather than promotes from within, current employees may feel forgotten or underappreciated. This may lead to lower staff retention and higher turnover.
  • Poor retention rates: External recruits may depart the company more frequently than internal hires, which may lead to poorer retention rates and higher recruiting and training expenditures.

Before making employment selections, it is crucial for organisations to thoroughly examine the advantages and possible drawbacks of lateral hiring.


Organisations should be aware of many possible staffing solutions drawbacks, including:

  • Concerns about quality: Temporary and contract staff may not be as involved in the success of the company as permanent employees, which might lead to lower-quality work. Additionally, errors may occur because recruits from outside the company are less familiar with its rules and practices.
  • Reduced control: Staffing options that entail contracting out or using outside help may give you less control over the job that gets done. An organisation that outsources its human resources duties, for instance, can have less influence over the recruitment and onboarding of new hires.
  • Integration issues: Integrating external employees into the organization’s culture and procedures may take more time and effort when using staffing solutions that include recruiting them. Longer onboarding times and lower productivity throughout the shift are possible outcomes of this.

Before deciding how to handle their personnel needs, it is crucial for organisations to thoroughly weigh any possible drawbacks of staffing options. Organisations should compare the costs and advantages of several employment options before selecting the one that best suits their needs and objectives.


In conclusion, organisations may manage their workforce demands via lateral recruiting and staffing solutions. Internal promotions, lateral hiring, temporary staffing, and outsourcing are some of the staffing options, whereas lateral hiring is hiring outside individuals to fill a particular position within the company.

Both lateral hiring and staffing solutions have benefits and drawbacks. Staffing solutions can be flexible and cost-effective, but they may also lead to decreased employee morale and less control over the calibre of the job. While lateral hiring can introduce fresh ideas and abilities to the company, it can also be more expensive and involve lengthy onboarding processes.

The ideal strategy will ultimately depend on the particular requirements, objectives, and resources of the organisation. Organisations should carefully weigh the advantages and disadvantages of each strategy before selecting the one that best matches their culture and set of values while also satisfying their workforce needs.


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