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Finding the most efficient and cost-effective methods to bring onboard exceptional talent is a priority that keeps many HR professionals and hiring managers up at night. Among the myriad strategies available, one stands out for its potential to save time and money while still ensuring a high-quality hire: lateral hiring.
Introduction to Lateral Hiring
At its core, lateral hiring refers to recruiting candidates who are currently employed and possess the desired experience and skills, often from a similar role or industry. This approach contrasts with the traditional methods of hiring fresh graduates or promoting internally and comes with unique traditional methods of hiring fresh graduates or promoting internally and comes with a unique set of benefits and challenges.
The idea of snagging a professional who can hit the ground running, bringing a wealth of experience and potentially fresh perspectives from competitors or related industries, is undeniably appealing. But how exactly does this translate into cost and time savings? And what should HR professionals and hiring managers keep in mind to make the most out of lateral hiring? Let's dive in.
The Cost and Time Efficiency of Lateral Hiring
1. Bypassing the Learning Curve
One of the most significant advantages of lateral hiring is the reduction in the onboarding and training time required. Experienced hires typically need less time to acclimate to their new roles, understand the industry, and start contributing effectively.
A study by Deloitte found that 70% of organizations consider lateral moves as an effective way to address skills gaps within their workforce, showcasing the importance of lateral hiring in talent development strategies.
- Faster Time-to-Productivity:
By bringing in someone with relevant experience, companies can significantly shorten the time it takes for a new hire to reach full productivity. Lateral hires reach full productivity 33% faster than new graduates. This not only saves on the costs associated with a lengthy ramp-up period but also helps achieve business objectives faster.
- Reduced Training Expenses:
While every company has its own set of tools, processes, and culture, an experienced hire will likely need less in-depth training than someone new to the field. This can lower training costs and free up resources for other initiatives.
2. Leveraging Industry Knowledge and Network
Lateral hires often bring with them not only their skills but also their industry insights and professional networks. This can be particularly valuable in roles that rely on market knowledge or extensive collaboration.
According to a survey by LinkedIn, 85% of global talent acquisition leaders agree that a company’s talent brand plays a crucial role in attracting candidates, and lateral hiring can enhance the brand by bringing in experienced professionals.
- Immediate Impact:
Experienced hires can often provide insights into industry best practices, competitor strategies, or emerging trends right from the start. Their ability to quickly understand and navigate the competitive landscape can be a significant advantage.
- Networking Opportunities:
The professional networks that lateral hires bring can open doors to new clients, partnerships, or talent, further enhancing the company's growth and development prospects.
3. Minimizing Hiring Risks
Recruiting someone with a proven track record and verifiable experience can reduce the inherent risks associated with hiring. While every new hire carries some level of uncertainty, experienced professionals usually have a clearer performance trajectory that hiring teams can evaluate.
The Society for Human Resource Management (SHRM) reports that lateral hires are 20% less likely to leave their new positions within the first six months compared to external hires, highlighting the reduced turnover risk associated with this hiring approach.
- Predictable Performance:
By reviewing past achievements and speaking with references, employers can get a better sense of what to expect from a lateral hire.
- Cultural Fit:
Experienced hires, having been through different organizational cultures, might have a clearer idea about where they’ll fit best. This self-awareness can lead to better alignment and reduced turnover.
Implementing Lateral Hiring Strategies
1. Identifying the Right Roles for Lateral Moves
Lateral hiring is not a one-size-fits-all solution. It’s essential to identify roles where the experience will be most beneficial, typically positions that require specialized knowledge or those where immediate impact is critical.
Suitable Roles for Lateral Moves: Positions such as senior management roles, specialized technical roles, sales, and business development positions, and roles requiring specific industry expertise are ideal candidates for lateral hiring.
1.1 Crafting Appealing Offers
To attract top talent from other organizations, companies need to put together compelling offer packages. These should not only be competitive in terms of salary but also highlight growth opportunities, benefits, and organizational culture.
1.2 Building a Talent Pipeline
Proactively building relationships with potential candidates, even when there’s no immediate opening, can pay dividends in the long run. Establishing a presence at industry events, online forums, and professional networks can help in creating a talent pool to tap into when the time is right.
Conclusion: Making Lateral Moves Work for You
Lateral hiring, with its many advantages, can indeed be a game-changer in terms of cost and time efficiency. However, it requires a strategic approach, from identifying the right roles and candidates to crafting offers that truly resonate with experienced professionals.
For businesses looking to streamline their talent acquisition process and quickly bolster their teams with seasoned individuals, lateral hiring offers a promising path. By understanding the nuances of this strategy and implementing best practices, companies can enjoy the benefits of swift, cost-effective hiring without compromising on quality.
Hiring Leaders and visionaries can be a daunting task but it doesn’t necessarily have to be. Through meticulous pre-screening and a targeted approach, Employ by Sparklehood reduces the time-to-hire significantly. The process aims to present you with a shortlist of well-qualified candidates, streamlining the recruitment journey and enabling you to make strategic hires more time-efficiently.
Remember, the goal of lateral hiring is not just to fill a vacancy but to bring on board a valuable team member who can contribute to the organization's growth and success from day one. With careful planning and execution, it's an approach that can yield remarkable results for companies in their quest for top talent.
