Lateral move: What it is and whether it’s worth it

A lateral move is often misunderstood as a step sideways, but for employers, it can be a strategic step forward. By helping employees transition into new functions, organizations can fill critical skills gaps and build a more adaptable workforce.

While promotions will always play an important role in career growth, not every employee’s next step needs to be upward. A well-designed lateral career move can help employees develop new skills, gain cross-functional experience, and prepare for future opportunities while allowing companies to maximize the talent they already have.

In this article, we’ll explore what a lateral move means, why employers offer them, and how organizations can use lateral mobility to support retention and workforce planning.

A lateral move is a change to a different role within an organization that has a similar level of responsibility, seniority, and compensation. Unlike a promotion, which moves an employee up the organizational hierarchy, a lateral move allows them to expand their skills or transition into a different function without changing job level.

Both lateral and vertical moves help employees grow within an organization, but they serve different business objectives.

A vertical move is a promotion to a role with greater responsibility, authority, and typically higher compensation. These moves are often tied to leadership development, succession planning, and recognition of strong performance.

A lateral move, on the other hand, keeps employees at a similar organizational level while shifting them into a different team or department. Rather than advancing their title, the focus is on expanding their skills, increasing cross-functional experience, and aligning talent with evolving business needs.

LATERAL MOVE:	VERTICAL MOVE:
Similar level of responsibility	Increased responsibility and authority
Typically maintains similar compensation	Usually includes a salary increase
Builds new skills and cross-functional experience	Expands leadership scope and career progression
Supports internal mobility and workforce flexibility	Supports succession planning and leadership growth
Often fills critical business needs quickly	Often rewards performance and readiness for greater responsibility

Lateral moves are a strategic way for organizations to retain talent and adapt to changing business needs. Rather than losing experienced employees to external opportunities or relying solely on new hires, employers can use lateral career moves to keep valuable skills within the organization.

Here are some of the most common reasons employers offer lateral moves.

One of the biggest reasons employees leave is the belief that they have limited opportunities to grow. A lateral move provides a new challenge and opportunities to develop new skills without waiting for a promotion.

When business priorities shift, certain teams may need additional expertise more quickly than external hiring can provide. Moving employees into roles where their transferable skills are valuable allows organizations to respond faster while minimizing recruitment costs and onboarding time.

During restructures or mergers, some roles may become less critical while others experience increased demand. Lateral moves allow employers to redeploy talent into areas of need, preserving institutional knowledge and reducing the need for layoffs whenever possible.

Strong leaders often benefit from experience across multiple functions. Lateral moves expose employees to different business challenges and ways of working, helping them build the broader perspective needed for future leadership positions. This also strengthens succession planning by creating a deeper pipeline of well-rounded talent.

Organizations that encourage internal movement can adapt more effectively to change. Employees with experience across departments are often better equipped to collaborate, solve cross-functional challenges, and step into new responsibilities as business needs evolve. Over time, this creates a more flexible workforce.

Ready to maximize the benefits of redeployment for your employees and organization? Click below to connect with our experts and learn how you can partner with Careerminds to handle internal transition strategies seamlessly.

Lateral moves can occur within the same department or across different functions, depending on an employee’s transferable skills and the organization’s needs. Here are a few common examples.

CURRENT ROLE:	POTENTIAL LATERAL MOVE:	WHY IT MAKES SENSE:
Sales Representative	Customer Success Manager	Strong relationship-building skills help improve customer retention and account growth
Customer Success Manager	Account Manager	Deep customer knowledge translates well into managing and expanding client relationships
Recruiter	HR Generalist	Hiring experience provides a strong foundation for broader people strategy
HR Generalist	Learning and Development Specialist	Employee development experience naturally supports training and upskilling initiatives
Marketing Manager	Product Marketing Manager	Combines messaging expertise with cross-functional collaboration on product launches
Project Coordinator	Operations Analyst	Organizational and process management skills transfer well to operational improvement
Business Analyst	Product Manager	Analytical thinking and stakeholder management support product strategy and execution
Financial Analyst	FP&A Analyst	Similar analytical capabilities with a broader focus on budgeting and strategic planning
IT Support Analyst	Cybersecurity Analyst	Technical knowledge can be expanded through targeted security training and certifications
Store Manager	Corporate Training Manager	Leadership and coaching experience can be applied to employee training and development

Not every lateral move involves changing departments. For example, an HR business partner might move from supporting the sales organization to supporting engineering, or a marketing manager might shift from demand generation to brand marketing. These moves broaden business knowledge while applying many of the same core skills. The most successful lateral moves are based on transferable skills, development goals, and business needs, rather than job titles alone.

Even when a lateral move benefits the organization, employees won’t automatically see it as a positive opportunity. How the move is positioned and whether it aligns with their career goals often determines whether they’ll accept it.

Employees are more likely to embrace a lateral move when they see it as an investment in their long-term career rather than a sideways step. Common reasons include:

• Opportunities to develop new skills that prepare them for future leadership roles
• Exposure to a different function or business unit, helping them build broader organizational knowledge
• Greater alignment with their interests or strengths
• A clearer path to future advancement, even if the move itself isn’t a promotion
• New challenges that reignite motivation and prevent career stagnation

When employers clearly communicate how the move supports an employee’s professional growth, lateral moves are more likely to be viewed as career-building opportunities.

Employees may hesitate if they believe the move offers little personal or professional benefit. Some of the most common concerns include:

• No increase in pay or title, making the move feel like additional work without greater reward
• Uncertainty about future career progression, especially if the next step after the move isn’t clear
• Concerns about leaving an established team or manager with whom they’ve built strong relationships
• Fear of entering an unfamiliar role where they may need to learn new systems or develop different skills
• Perception that the move is driven solely by business needs rather than employee development

Organizations can increase employee buy-in by framing lateral moves as part of a broader career development strategy rather than simply filling an open position. Employees are more likely to accept a move when they understand why they were selected, what they’ll gain, and how the opportunity supports their long-term career growth.

Instead of focusing on the business need alone, communicate the value that the lateral move in career creates for the employee.

This approach reinforces that the move is an investment in the employee rather than a reaction to an organizational need. Managers should also encourage employees to ask questions about the role, discuss how success will be measured, and outline potential next steps after the move. When employees can see a clear path for growth, they’re far more likely to view a lateral move as a meaningful career opportunity instead of a sideways step.

For many organizations, a lateral move is a valuable investment in long-term business success. A well-planned lateral move can help employers maximize existing talent and reduce hiring costs.

The value of a lateral move depends on whether it addresses a clear business need while creating meaningful growth opportunities for the employee. When done strategically, lateral moves can provide several benefits.

Hiring externally can be expensive and time consuming, especially for roles requiring specialized knowledge or organizational experience. Moving an existing employee into a new role allows employers to leverage someone who already understands the company’s culture, processes, and goals while reducing recruiting and onboarding time.

Employees who move laterally gain a deeper understanding of how different parts of the organization operate. Someone who moves from sales to customer success, for example, gains insight into the customer journey beyond the initial sale. Over time, these experiences create employees who can collaborate more effectively, identify opportunities across teams, and make better-informed decisions.

When employees stay within the same department for years, teams can develop isolated ways of working. Lateral moves encourage knowledge sharing across functions by bringing different perspectives and expertise together. This can improve collaboration and create stronger connections between departments.

Lateral career moves are not only beneficial for employees making the transition; they also develop their managers. Leaders who support internal mobility learn how to coach employees through change, identify transferable skills, and develop talent beyond their immediate team.

Traditional promotion paths can sometimes favor employees who follow a single, linear career trajectory. Lateral mobility creates more opportunities for employees with varied backgrounds and experiences to build the skills needed for future leadership roles.

When experienced employees are approaching retirement or leaving the organization, lateral moves can help transfer critical knowledge to other employees. Moving talent across teams creates opportunities for mentorship, documentation, and continuity.

While lateral moves may not offer a title promotion or compensation increase, they provide employees with opportunities to explore new career paths and build the experience needed for future growth, while allowing employers to retain and redeploy talent where it’s needed most.

The key to successful lateral moves is how they are approached. Organizations should focus on aligning employee strengths with business needs, clearly communicating the value of the opportunity, and providing the support employees need to succeed in their new roles. When employees understand how a move contributes to their long-term development, they’re more likely to view it as a meaningful career step rather than a sideways transition.

Here are the key takeaways:

• Lateral moves help organizations retain talent by creating new growth opportunities without requiring a promotion.
• Internal mobility is a strategic workforce tool that allows companies to fill skills gaps and redeploy talent more effectively.
• The difference between lateral and vertical moves is the purpose they serve. Promotions expand responsibility, while lateral moves broaden skills and experience.
• Employees are more likely to accept lateral moves when the opportunity is positioned around their growth, not simply as a business need.
• Clear communication is essential to helping employees understand how a lateral move supports their career goals.
• Transferable skills matter more than job titles when identifying employees who may be successful in new roles.
• Lateral moves strengthen leadership pipelines by giving employees broader cross-functional experience.
• Organizations with strong internal mobility programs are better equipped to adapt to change, reduce hiring costs, and retain institutional knowledge.

Your best talent strategy may already be inside your organization. Careerminds partners with organizations to design workforce solutions that keep employees engaged and prepared for what’s next. Click below to talk with a Careerminds expert about how we can help you build a stronger internal mobility strategy.