Promotions are traditionally seen as a symbol of success within an organization.
In a standard career pathway, promoted employees take on broader job scopes and responsibilities, justified by higher salaries and additional staff benefits. Yet, career progression may come in subtler forms, such as lateral or sideways movements.
These types of transitions could include…
- Switching from a corporate role at the main office of an MNC to a smaller offshore branch
- Moving from accounting to auditing at a financial institute
- Assuming a cross-functional role for P&L exposure
While lateral movements may lack the prestige of promotions in terms of salary and benefits, they are more effective in keeping employees engaged in the long term. An MIT Sloan study showed that lateral transition opportunities at work are 12 times more effective than promotions in influencing talent retention.
These lateral movements are more than title inflation. They offer talent golden opportunities to showcase their versatility and resilience, which qualify them for leadership roles further down the career pipeline.
Thanks to decades of experience placing professionals across industries, MRINetwork recruiters understand the value of lateral and their often-overlooked influence on leadership development. Read on to discover how decision-makers can enhance their executive talent search by identifying future leaders, no matter their path to career progression and professional development.
Identifying the Strategic Importance of Lateral Movements
Lateral movements present talent with unfamiliar and challenging territories, although they maintain the same job level. These transitions demand new functions and responsibilities that require individuals to adopt more resilient and adaptable workplace attitudes.
As such, lateral movements encourage the development of transferable soft skills crucial for leadership growth. These skills could include time management, calculated risk assessments, problem-solving, and communication. And perhaps more importantly, lateral movers have the advantage of experiencing different organizational areas without the pressures of a promotion.
Exposure to different sides of company operations sharply improves an employee’s situational awareness to help them act practically and decisively when complex issues arise. Lateral movers could also develop a stronger sense of empathy through a deeper understanding of cross-departmental workflows.
Through professional network expansions, talent can broaden their perspectives by appreciating their team and accepting diverse workplace dynamics. As future leaders, movers can effectively empathize with co-workers and foster a positive and supportive climate that advances a company’s employee retention techniques.
How Lateral Moves Influence Leadership Development
Lateral movements broaden organizational perspectives, equipping talent with specialized skill sets for handling diverse workplace scenarios. Every deployment further diversifies the employee’s core competencies with informed choices, risk assessment, and resource management.
Industry case studies show that lateral movers earn higher salaries than non-movers, even in scenarios where they do not demonstrate superior performance and despite the lack of promotion. These incentives could encourage employee engagement, retention, and organizational alignment to lead successfully by example.
In fact, employees with lateral movement experience are more likely to be promoted in three to four years compared to peers who lack these skills. The interpersonal skills developed through a broader professional network could make these individuals more approachable as leaders.
How MRI Recruiters Evaluate Lateral Moves in High-Impact Candidates
The experienced recruiters at MRINetwork have developed a holistic approach to talent assessment, going beyond the limitations of traditional resumes. Lateral movements, for example, have become a standout factor for assessing job fits during interviews. Workforce research reveals that companies with established internal employee initiatives, like lateral transitions, boost employee intent and retention by 33%. These transitory milestones shed valuable insights for predicting employee personas and career outcomes.
MRINetwork team members also focus on key indicators such as problem-solving, risk-taking, and acquired competencies to achieve best practices in recruiting business leaders. By interpreting these indicators, employers can determine the talent’s long-term vision and career management. Recruiters can also increase awareness of red flags based on poor performance in these areas, which may suggest a cultural mismatch and a lack of leadership readiness.
Strengthening Leadership Pipelines With Lateral Movements
MRINetwork optimizes succession planning best practices by providing companies with access to the most qualified leadership candidates.
By incorporating hiring factors such as lateral transitions and cross-functional experience, employers can confidently attract astute individuals with diversified leadership skills.
Visit MRINetwork to discover how you can optimize organizational talent development with a comprehensive assessment of career movements.
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