How to enable lateral career moves: A manager's guide

As a manager, you’re always looking for ways to keep your team engaged, growing, and excited about their roles. Promotions and vertical moves are often the default path for career advancement, but there’s another powerful option that is often overlooked‌ — ‌lateral career moves.

Enabling lateral career growth not only helps employees diversify their skill sets, but it also boosts engagement, morale, and retention. In this article, we’ll explore how managers can effectively support and encourage lateral moves, and why doing so is beneficial for your team and company.

What is a lateral career move?

A lateral career move means transitioning to a role with similar responsibilities and level of seniority, but in a different department or functional area. Rather than moving "up the ladder," employees shift sideways to broaden their expertise.

What does a lateral move mean for employees?

A lateral move is an opportunity for employees to gain new skills, work with different teams, and challenge themselves in new ways without necessarily climbing the corporate hierarchy. Instead of focusing only on vertical promotions, lateral moves open doors to different career paths. 

For example, someone in project management might move into an operations role. This person may not have direct experience in operations, but can use their project management skills in a new context.

The benefits of lateral growth for employees

Many employees think of promotions when they picture career advancement, but lateral growth can be just as valuable, if not more so, for long-term development. Here’s how later career moves can benefit employees:

1. Skill diversification

Lateral moves are great for building a diverse skill set for employees. People who make lateral transitions gain exposure to new tools, teams, and workflows, making them more adaptable and resilient. These varied experiences are especially valuable in fast-changing industries like tech, where the ability to pivot and adapt is key.

2. Job satisfaction and engagement

By offering lateral growth opportunities, you’re giving employees more control over their careers, which boosts their job satisfaction and engagement. Employees who feel empowered to explore new challenges within the company are more likely to stay motivated and satisfied in their roles.

3. Future career development

Employees gain a broader understanding of the company through lateral career moves, which can set them up for success later in their professional development. Employees may end up with vertical promotions through their experience across different departments and functions. 

4. Opportunity for change 

Sometimes, employees need a change, but that doesn’t always mean a promotion. A lateral move can help an employee stay motivated and try something new, without the pressure that often comes with climbing higher up the career ladder or leaving the company.

Why managers should support lateral career moves 

Lateral moves don’t just benefit employees‌ — ‌they're also a strategic win for the company. Lateral career moves create more adaptable, knowledgeable, and well-rounded teams. Here’s why you should encourage lateral career moves as a manager.

1. Employee retention 

People who have experienced lateral moves have a 64% chance of remaining with an organization after three years. People who stick with the same role only have a 45% chance of remaining with the same company. Internal mobility is a way for personal growth, which motivates employees to stay longer with your organization. This reduces turnover costs and helps your company maintain institutional knowledge.

2. Talent development

Employees naturally go through cross-functional training when they make a lateral career move. This means companies can develop their existing talent in a cost-effective way. Instead of finding a new person to hire for a certain role, companies can use the skills and knowledge of their current employees. This not only reduces recruitment costs but also minimizes the expenses and time associated with onboarding and training new hires.

3. Building a resilient company 

People who have worked across departments are flexible and adaptable. Employees with a broad range of skills can step in when needed, fill gaps, and contribute to cross-functional projects more effectively

Lateral growth also encourages employees to work across departments, breaking down silos. When employees make an internal career change, they bring their unique perspectives, skills, and experiences from one team to another. These benefits lead to building a resilient company that can withstand constant change.

How managers can facilitate lateral career moves

A manager can significantly influence lateral career moves within a company. Here’s how you can reassure your team members that change is accepted and encouraged:

1. Share opportunities for lateral moves

Start by identifying potential lateral move opportunities within your organization. Are there departments that could benefit from a fresh perspective? Is there a project where cross-functional experience would be useful? 

If you find a role where employees can apply their current skills in new contexts, share it with them, or direct them to internal job boards for new opportunities. 

2. Encourage open conversations

Make it clear to your team that lateral moves are encouraged and supported. Regularly talk to your employees about their career aspirations, and include lateral moves in these conversations. This removes the perception that the only way forward is up.

3. Break down departmental barriers

Lateral moves require collaboration between departments, so make sure you’re fostering cross-team relationships. Encourage leaders from different areas of the company to communicate and share talent, instead of seeing lateral moves as a loss for their team.

4. Remove stigma around lateral moves

Unfortunately, some employees view lateral moves as a sign that they aren’t advancing. It’s important to remove stigma on lateral career moves and encourage them as part of a healthy and dynamic career. Position lateral growth as an exciting option that provides long-term benefits for both the employee and the organization.

Overcoming challenges in supporting lateral career moves

Despite best efforts from leadership, supporting lateral career moves can still be a challenge. Here’s how to overcome common barriers for managers supporting lateral moves: 

Create a safe space 

Lateral career moves can be a sensitive topic for employees – employees can worry that wanting to transfer to a new department may seem like they aren’t committed to their current role. Some employees may fear that making a lateral move could make it look like they aren’t progressing.

It’s up to managers to create a safe space for employees to open up and express their true career goals. Recognize that personal growth and career ambitions look different for everyone, and it may change over time. Accepting your employees needs and supporting their personal growth is a sure way to encourage lateral career moves.

Collaborate with other managers 

Other departments might be hesitant to welcome lateral transfers, fearing it might disrupt team dynamics. Managers need to be open-minded to accommodate people from different functions who could be a good fit for their team. 

Leaders should remind each other that lateral moves can bring fresh perspectives and innovation to their teams. Work together so employees can make a smooth transition between teams. An employee who made a career change within the company shouldn’t be holding on to work from their previous role.

Lateral career moves for long-term success

Lateral career moves are a powerful tool for both employees and organizations. Employees can pursue their own unique career path while managers unlock employee engagement and retention. As companies face the demands of a global workforce, lateral growth will be key to building resilient, flexible teams that can thrive in any environment.

It’s important to understand the dynamics of the global workforce to lead your team to success.  Don’t miss out on more ways to support your global team‌ — ‌check out Remote’s Global Workforce Report for additional insights and strategies from over 4,000 executives and HR leaders today.

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