The traditional career path is often seen as a straight climb up a ladder, with each new job representing a step up in title, responsibility, and pay. This model of vertical growth is a familiar goal for many professionals. However, this linear view doesn’t encompass the full range of strategic career decisions. Sometimes, a move sideways is more beneficial than a move up. Such a shift might not come with a promotion, but it can open doors to new opportunities, skills, and work environments that a direct ascent cannot.
Defining a Lateral Hire
A lateral hire occurs when an employee moves into a new role that is at a similar level of seniority and compensation as their current one. This can happen within the same company, such as moving from a marketing role to a product manager position, or it can involve changing employers entirely. The defining characteristic of a lateral move is not an increase in rank but a significant change in job function or work environment. The focus is on horizontal growth rather than vertical promotion.
These moves are distinct from promotions, which involve a clear step up in the organizational hierarchy. For instance, a senior graphic designer who leaves one company to become a senior graphic designer at another is making a lateral move. While the title and base salary may be comparable, the new role could offer exposure to a different industry, a new team dynamic, or the chance to work on higher-profile projects.
Why Companies Make Lateral Hires
Companies often make lateral hires to quickly fill skill gaps within their teams. Instead of investing significant time and resources into training an existing employee, a business can hire someone who already possesses the necessary expertise and a proven track record. This is common for technical or senior roles where a deep level of knowledge is required from day one. A lateral hire can integrate into a team and begin contributing almost immediately, minimizing disruption.
Hiring from a competitor or a different industry also allows a company to inject fresh perspectives and innovative ideas into its operations. An employee from another organization brings with them different processes, strategies, and market insights that can challenge the status quo. A company might also make a lateral hire to gain access to a candidate’s existing client relationships or market knowledge, providing a competitive advantage.
Benefits of Making a Lateral Move
A lateral move can be a strategic choice for several reasons.
- Gaining new skills and experience: A lateral move can broaden your professional skill set without the added pressure of a promotion. By transitioning to a different department, you can gain hands-on experience in a new functional area. This diversification of skills can make you a more versatile employee in the long run.
- Improving work-life balance: The motivation for a job change can be personal well-being, not just career advancement. A lateral move to a company with a more supportive culture can significantly improve work-life balance. This move prioritizes long-term job satisfaction over a title change.
- Escaping a negative work environment: A toxic workplace or a role with no apparent future can stifle career growth. A lateral move serves as a practical escape route. It allows you to leave a detrimental situation without taking a step back in seniority or pay.
- Expanding your professional network: Entering a new company or department introduces you to new colleagues, managers, and industry contacts. Building these relationships expands your professional network, which is an asset for future career development. These connections can become mentors or collaborators.
- Positioning for future growth: A lateral move can be a strategic maneuver for future advancement. You might move into a department or company that is growing more rapidly or has more opportunities for upward mobility. This move is about playing the long game for a bigger leap forward later.
Potential Downsides of a Lateral Move
One of the most immediate downsides of a lateral move can be salary stagnation. Because these moves don’t come with a significant pay increase, making several lateral shifts without a promotion could cause your compensation to fall behind that of your peers. You might miss out on the larger pay bumps that accompany promotions, potentially impacting your long-term earning potential.
Adapting to a new company culture and team dynamics presents another challenge. Even if the role is similar, every organization has its own unwritten rules, communication styles, and internal politics. The process of learning to navigate this new environment and build rapport with a new team can be demanding. A mismatch between your work style and the new company’s culture can lead to dissatisfaction.
There is also a potential risk to how a lateral move is perceived. Some may view a sideways move as a sign of a stalled career, questioning why you didn’t secure a promotion. This can lead to a sense of falling behind or a need to justify your decision to counteract any negative perceptions.
Lateral Moves Versus Promotions
The distinction between a lateral move and a promotion comes down to changes in responsibility, title, and compensation. A promotion involves a significant and clear increase across all three of these areas. An employee who is promoted takes on a higher-level role with greater accountability and a more senior title, reflecting their new duties. It is a vertical step up the organizational hierarchy.
In contrast, a lateral move keeps these elements relatively stable. The employee transitions to a role with a similar level of responsibility and a comparable title and salary. The primary change is the context of the work—the department or the company—rather than the level of seniority.