What’s a lateral move in business?

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A lateral move involves an employee moving to a different work area without a change in salary or wage grade. It can be beneficial for career development, but employees must weigh the pros and cons before deciding. A distinction exists between a lateral move and a lateral promotion, and each has its own advantages and disadvantages.

A lateral move in business tends to refer to when an employee moves from one work area to another without changing salary or wage grade. There are numerous reasons why a lateral move can be good for a career and also reasons it can frustrate someone’s personal business goals. Each person has to decide if a lateral move is appropriate, even if some people don’t have the option. Sometimes, when company-wide layoffs or restructurings occur, people are able to make the sideways jump to a different job and are simply relieved that they didn’t lose their jobs.

There is a distinction between a lateral move and a lateral promotion, and this is important to understand. A lateral promotion means that a person is given more responsibilities, usually a more authoritative title and no additional pay. Companies that are cutting costs can create side promotions to save money and yet have the people they need to rank higher. On the other hand, some employees may see this as a way to prevent the company from shirking reasonable compensation for more work and more responsibility. Anyone offered a side promotion must determine whether the added work and a chance to gain more experience would be worth their current salary.

In contrast to lateral promotion, a lateral move usually involves a similar set of responsibilities to those the employee already assumes. However, the job may be different, different skills may be required, and/or the employee may be working with a different department within the company. For example, some people might make the leap to working as the personal secretary to an HR secretary.

There’s a lot to be said about the potential benefits of trying a new job or working elsewhere in a company. It offers many employees the chance to become more employable by learning a new set of skills. More experience is usually very helpful.

Lateral moves can sometimes help those who have had trouble gaining recognition in their department, going to a department with better employee management skills or a proven track record of employee development and promotion can increase the likelihood of salary increases or promotions in the future. Another reason some employees may require a lateral move is if they are unable to do the job they are currently doing. People with repetitive motion injuries, for example, may need to find work with similar responsibilities but that doesn’t exacerbate medical problems.

Not all employees seek lateral movement and not everyone is thrilled when this concept is proposed. They can be very comfortable where they are and benefit greatly from the type of work they do and the people they work with. Sometimes employees are moved into a department and they already know that managers are more difficult. It’s not always necessary to make a lateral move unless job retention is on the line, but each person should weigh the pros and cons carefully before deciding.

While the benefits of moving to a new department or job type may increase employee marketability, there is a certain fear factor associated with trying something new. This is not unjustified, as there is always the possibility of failure in a new environment. However, in many cases the chance of failure in a lateral move is balanced by equal or even greater chances of success and promotion of career goals.




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