What is lateral hiring?

Lateral hiring refers to the process of recruiting an employee from another company who is currently working in a similar role, typically at the same level of seniority and responsibility. Unlike entry-level recruitment or promotions from within, lateral hiring brings in external talent with proven experience to fill an existing gap—without the steep learning curve that often comes with onboarding less experienced candidates.

For small business owners, lateral hiring can be a fast and effective way to bring in ready-to-perform employees who already understand the demands of the job. It’s especially useful when time is tight, the learning curve is steep, or you need to add new capabilities without disrupting operations. Homebase helps streamline the hiring process from job posting to onboarding so you can fill key roles faster and more efficiently.

Why lateral hiring is valuable for small businesses

Hiring someone laterally means you're not starting from scratch. You’re bringing in a candidate who already knows how to perform the core responsibilities of the role. For small business owners juggling day-to-day operations, that can mean:

• Less time spent training new hires
• Immediate impact on productivity
• Reduced risk of underperformance
• Faster adaptation to team dynamics
• Access to new perspectives or skills

In high-turnover industries like retail, hospitality, and food service, lateral hiring can help you stabilize your team with experienced hires who already understand the rhythm of the work.

Lateral vs. internal vs. entry-level hiring

Understanding where lateral hiring fits into your overall recruitment strategy is key.

• Lateral hiring brings in experienced workers from outside your company to fill a role similar to what they already do
• Internal hiring promotes or moves current employees into new roles within the company
• Entry-level hiring brings in candidates with limited or no experience for basic or training-based roles

Each has its place—but lateral hiring offers a balance of experience, speed, and fresh perspective that can be uniquely powerful in time-sensitive hiring situations.

Common scenarios for lateral hiring

Lateral hiring can be particularly effective in several small business scenarios:

1. Rapid business growth

When your business scales faster than your team, hiring someone with experience in a similar environment can help absorb the workload quickly.

2. Replacing a key employee

If a trusted team member leaves unexpectedly, lateral hiring helps you find a strong replacement without a long ramp-up period.

3. Expanding into new services or roles

Lateral hires can bring in skills your team doesn’t currently have, whether it’s digital marketing, shift supervision, or vendor coordination.

4. Improving team performance

Bringing in someone with proven results elsewhere can inspire your current team and raise performance standards.

What to look for in lateral candidates

When evaluating lateral hires, you’re not just looking for someone with the right title—you want someone who can adapt to your specific environment and team culture.

Look for candidates who:

• Have relevant experience in similar roles or industries
• Show initiative and a history of solving problems
• Are open to new systems or slightly different workflows
• Demonstrate strong interpersonal skills, especially if they’ll manage or collaborate closely with your team
• Understand your business model and align with your company culture

It’s also important to assess why the candidate is leaving their current role. Are they looking for growth? Better work-life balance? A different type of challenge? Understanding motivation helps ensure a better long-term fit.

Interview tips for lateral hires

Hiring laterally often means skipping the basics (e.g., “Have you worked a cash register before?”) and diving into deeper, performance-based questions.

Here are some helpful interview tactics:

• Ask about specific achievements – “Tell me about a time you improved efficiency or customer satisfaction.”
• Give them real-world scenarios – “If two employees no-show on a shift, how would you handle it?”
• Evaluate flexibility – “How do you approach learning a new system or process?”
• Gauge culture fit – “What type of work environment brings out your best work?”

A structured interview process helps you compare lateral candidates more fairly and make a confident hiring decision.

How to retain great lateral hires

Hiring is just the first step—retaining top lateral talent requires setting them up for success from day one:

• Provide a structured onboarding experience, even if they’ve done the job elsewhere
• Clearly communicate expectations for their role, goals, and performance
• Involve them in team activities so they don’t feel like an outsider
• Offer growth opportunities, especially if they left their previous role due to stagnation
• Give regular feedback so they know how they’re doing and where they can improve

Lateral hires are often looking for more than just a job—they want a role where they feel valued and have room to grow.

How Homebase supports better hiring and onboarding

Homebase simplifies the hiring process for small business owners so you can find and onboard lateral hires faster—without the paperwork or confusion.

With Homebase, you can:

• Post jobs to multiple boards with one click
• Track and evaluate candidates from a central dashboard
• Schedule interviews and message candidates directly
• Collect tax forms and onboarding documents digitally
• Transition new hires into scheduling and time tracking instantly

Explore Homebase Hiring and Onboarding to build a more efficient, organized, and welcoming hiring process—whether you're bringing in seasoned professionals or growing leaders from within.