Maya, a senior financial analyst based in Chennai, decided to move into a business development role at the same rank and pay. After two years, she leveraged both experiences to become the Director of Strategy at her company. Maya took a risk with a ‘lateral move’, which paid off in her career trajectory. Climbing the career ladder is not a universal goal anymore. Today, lattices are part of the career trajectory as well.
A lateral move refers to transitioning into a different role at the same organisational level. There is no change in rank or pay, but responsibilities and departments may vary. It could be either within your current organisation or in a new one, and is also known as a horizontal move. You could move from marketing manager to operations manager, switch companies for a similar job in a new industry, or relocating within the same company for a different functional role. The idea behind a lateral career move is that career success isn’t limited to upward movement. These experiences actually build career resilience.
In contrast, a vertical move is an upward career move typically involving a promotion, higher salary, more responsibility, and often, more visibility or leadership. According to the 'Human Capital Theory' by Becker, vertical moves build specific human capital or deep knowledge in one area, while lateral moves often build general human capital, skills applicable across many contexts.
The Advantages Of Lateral Moves
‘Lateral moves expose you to new functions, industries, or tools, broadening your skillset and marketability,’ says career consultant Swathi Srinivasan. ‘This is also known as the acquisition of new skills and is a key advantage for future career advancement. You get to build a broader portfolio, learning about different areas of the business. The experience also enhances your agility, making you more valuable during restructuring, tech transitions, or innovation cycles.’
She adds, ‘Moving sideways, especially into a more central or higher-profile team, enhances visibility and expands your professional network. It may also deliver greater flexibility, better culture fit, or improved geographic convenience. This translates into improved job satisfaction. Lateral experience across functions cultivates a holistic business understanding, making you a stronger candidate for leadership roles later. If promotion isn't on the horizon, a lateral move can reignite motivation or unlock new pathways.’
Potential Challenges Of A Lateral Move
Lateral moves typically don't come with a raise. If this is your main goal, this can feel like a setback. Also, promotions are a sign of achievement, competency, and leadership potential, so if you’re looking to check those boxes, it could be a challenge. A lateral move might also be viewed as a lack of drive. A new role, even at the same level, might introduce unfamiliar responsibilities that demand adjustment. Also, there is no guarantee of faster promotions and you run the risk of being pigeonholed into subordinate roles.
When Should You Consider A Lateral Move?
Swathi lists out certain situations where you may want to consider a lateral move.
- You feel unfulfilled and need a new challenge or direction.
- You're looking to build new skills or explore new domains.
- You want flexibility, be it in hours, location, or workload.
- You aim to enhance your marketability for future roles.
- You want to pivot industries without starting from scratch.
- You need to relocate for personal reasons.
- You're preparing for a long-term leadership role and need broader functional exposure.
She adds, ‘Before you decide on whether a lateral move is apt for you, assess your circumstances, strengths, drivers, and long-term goals. More importantly, figure out whether you’re solving a temporary frustration or making a strategic decision.’
Is A Lateral Move Different For Women?
A 2013 survey found that 45 per cent of women are likely to take career risks and shift into fields unrelated to their degree, as opposed to just 36 per cent of men. In addition, 30 per cent anticipate another shift in the next decade. This suggests that lateral movement is not only common but embraced by women as part of their strategic career moves. Later moves could offer better work-life balance, open alternative leadership paths and circumvent promotion bias in male-dominated pipelines.
Women often face career setbacks after relocation, especially within couples where moves prioritise male earnings. This is termed as the ‘relocation penalty’ and can disrupt a career more than an intentional move. Women can, however, benefit from professional networking platforms in overcoming these promotion and relocation gaps.
In other good news, a recent Investopedia analysis indicates that women may out-earn men in some sectors soon, thanks to higher educational attainment, urban living, delaying family planning, and strategic career decisions.
How To Use A Lateral Move As A Step Up
Swathi says, ‘Clarify what the move brings. Does it offer growth, purpose, or balance? Pair lateral shifts with networking, mentorship, and storytelling about your vision and skills. Finally, mitigate risks with training, request reintegration support, and seek clarity on potential career paths coming out of the move.’
A career side-step is far from a downgrade. It’s simply a different form of development. For women especially, given relocation penalties and networking gaps, lateral moves can be powerful devices if they’re positioned and planned well.