Lateral hiring brings in experienced professionals, typically already employed elsewhere, into a role at a similar or adjacent level, filling a specific gap against the company’s competency framework rather than developing entry-level talent from scratch.

How it compares to campus hiring

Lateral hires generally need minimal ramp-up and can contribute meaningfully within weeks, against the many months campus hires typically need to reach full productivity. That speed comes at a cost: lateral hiring in India commonly carries a real premium over the candidate’s prior fixed pay, and individual lateral hiring cycles tend to run longer than a single campus hiring event because of more individualized sourcing and negotiation. Even so, several sources argue total cost of hire can end up lower than campus hiring once reduced training time and faster productivity are properly factored in, not just the sticker-price premium on compensation. Lateral hiring reportedly accounts for a large share of annual hiring at Indian tech, finance and consulting firms, though the exact share varies by source and shouldn’t be treated as a fixed statistic.

Frequently asked questions

Is lateral hiring the same as an internal lateral move?

No, this term refers to external market hiring. An internal transfer at the same level is a different concept, closer to internal mobility.

Does lateral hiring always cost more than campus hiring?

On a pure compensation basis, usually yes. On a total cost-of-hire basis including training and time-to-productivity, it’s less clear-cut.

Which roles typically rely on lateral hiring?

Roles needing immediate domain expertise or leadership experience, where the ramp-up time a campus hire would need isn’t realistic for the business need.

See how this compares to campus recruitment and affects cost per hire.