Lateral Entry

Lateral Entry

Context:

The Union Public Service Commission (UPSC) recently invited applications for various positions across 24 ministries through lateral entry. However, the Central government directed the UPSC to withdraw this advertisement.

What is lateral entry?

• ‘Lateral entry’ into the bureaucracy refers to the induction of professionals from outside the traditional civil services into middle and senior management roles within the central government. 
• The Surinder Nath Committee (2003), Hota Committee (2004), and Second Administrative Reforms Commission (ARC) (2005) have supported the concept of lateral entry.
• In 2017, NITI Aayog, in its Three-Year Action Agenda (2017-20), along with the Sectoral Group of Secretaries (SGoS) on Governance, recommended this approach. 
• The idea was to bring in experts to join the central secretariat, which had previously been staffed exclusively by career bureaucrats from the All India Services or Central Civil Services. 
• These lateral entrants would be hired on three-year contracts, with the possibility of extending the term to a maximum of five years.

Positions opened for lateral entry:

• Following the recommendation for lateral entry, the first vacancies were advertised in 2018, initially limited to Joint Secretary-level positions. 
• Later, positions for Director and Deputy Secretary were also opened for lateral entrants.

Government’s stand:

• In 2019, Minister of State for the Department of Personnel and Training (DoPT) Jitendra Singh explained in the Rajya Sabha that lateral recruitment aims to achieve two main goals: bringing in fresh talent and increasing the availability of skilled manpower. 
• On August 8, 2024, while responding to a Rajya Sabha question, Singh further clarified that lateral recruitment at the levels of Joint Secretary, Director, and Deputy Secretary in the Government of India is intended to appoint individuals with specialised knowledge and expertise for specific assignments.
• The core idea behind lateral recruitment is to leverage individuals’ domain expertise and specialised skills, regardless of whether they are career bureaucrats. 
• Reflecting this approach, officials from various Central Civil Services have been given opportunities to serve in the Central Secretariat over the past decade, an area traditionally dominated by the IAS.

Appointments so far:

• The first round of lateral recruitment in 2018 attracted 6,077 applications for Joint Secretary-level positions. 
• In 2019, nine individuals were appointed to nine different ministries/departments following a selection process by the UPSC.
• Subsequent rounds of lateral recruitment were advertised in 2021, with two more rounds in May 2023. 
• As Minister of State Jitendra Singh informed the Rajya Sabha on August 9, 2024, a total of 63 appointments have been made through lateral entry over the last five years. 
• Currently, 57 of these lateral entrants serve in various Ministries and Departments.

Arguments in favour:

• Specialised Skills and Expertise: Lateral entry enables the government to recruit specialists with knowledge in areas such as technology, management, and finance, helping to fill knowledge gaps that generalist civil servants might lack as governance grows more complex.
• Example: In 2009, Nandan Nilekani left Infosys to become the chairman of UIDAI in the Indian government, where he oversaw the development of Aadhar, the world’s largest biometric identification system.
• Innovation and Reforms: Lateral entrants can bring valuable experience from the private sector, NGOs, or other organisations, contributing to reforms and enhancing administrative processes and governance.
• Addressing Shortages: The Department of Personnel and Training data indicates a shortage of around 1,500 IAS officers. 
• Changing Work Culture: Lateral recruits can help shift the work culture in the government sector, often criticised for red-tapism, rigid bureaucracy, and resistance to change.
• Participatory Governance: As governance becomes increasingly participatory and involves multiple actors, lateral entry allows stakeholders like the private sector and non-profits to participate in the process.

Criticisms:

• Undermining Meritocracy: Critics argue that lateral entrants may not have the same level of experience or knowledge as those who have risen through the ranks through competitive examinations.
• Bureaucratic Culture Clash: The hierarchical structure, rigid procedures, and slow decision-making processes may be unfamiliar to them, potentially leading to conflicts and inefficiencies.
• Political Interference: If lateral entrants are appointed based on political connections rather than merit, the civil service’s independence and impartiality could be eroded.
• Lack of Institutional Knowledge: They may not have a deep understanding of the complexities of the Indian bureaucracy or the specific challenges faced by different government departments.
• Limited Impact: They contend that the bureaucracy is so entrenched and resistant to change that adding a few lateral entrants will not be enough to bring about significant reforms.
• Potential for Corruption: If lateral entrants are appointed without proper scrutiny, it could create opportunities for nepotism and favouritism.

No Quotas:

• In a circular dated May 15, 2018, the Department of Personnel and Training (DoPT) emphasised that reservations for Scheduled Caste (SC), Scheduled Tribe (ST), and Other Backward Class (OBC) candidates are required for all Central Government appointments lasting 45 days or more.

• This directive, which now includes OBCs, reiterates a policy first outlined by the Ministry of Home Affairs in 1968, mandating government-appointed reservations.

• However, during the first round of lateral recruitment in November 2018, it was suggested that this recruitment process be considered similar to deputation, where mandatory reservations for SC/ST/OBC candidates are not required. 

How are lateral entries kept out of the ambit of reservation?

• Reservations in public jobs and universities are implemented using a “13-point roster” system, which allocates positions to different groups (SC, ST, OBC, and EWS) based on their reservation percentage. 
• For instance, OBC candidates with 27% reservation are recruited to every 4th vacancy (100/27=3.7), SC candidates with 15% reservation to every 7th vacancy (100/15=6.66), ST candidates with 7.5% reservation to every 14th vacancy (100/7.5=13.33), and EWS candidates with 10% reservation to every 10th vacancy (100/10=10).
• However, this system doesn’t apply when there are fewer than three vacancies. 
• According to documents obtained from the DoPT under the RTI Act, “In a single post cadre, reservation does not apply. Since each post to be filled under this scheme [lateral entry] is a Single Post, reservation is not applicable.”
• The UPSC has advertised 45 openings in the current recruitment round. If these were treated as a single group, the 13-point roster would allocate six vacancies to SC candidates, three to ST candidates, 12 to OBC candidates, and four to the EWS category.
• However, because these vacancies are advertised separately for each department, they are considered single-post vacancies, thereby bypassing the reservation policy.

Best Practices

United Kingdom: The UK’s Civil Service Fast Stream program clearly defines the objectives for lateral entry and maintains transparency in the selection process to build trust and ensure fairness.

United States: In the U.S., lateral entrants in government roles, particularly in senior positions, are often hired on fixed-term contracts with clear performance benchmarks. 

Australia: Australia’s Public Service Commission actively recruits from diverse backgrounds, including the private sector, academia, and non-profit organisations, ensuring a broad range of skills and experiences.

Germany: Germany ensures that lateral entrants are integrated into existing teams with a balance of career bureaucrats, promoting collaboration while respecting institutional knowledge and experience.

France: In France, lateral entry programs are regularly evaluated, and feedback from both the entrants and their colleagues is used to refine and improve the process.