Latest news with #career growth
Forbes
3 days ago
- Business
- Forbes
Why Lateral Career Moves Still Feel Risky—And What Leaders Can Do
Career growth inside companies still follows a narrow script—progress often defined by vertical movement alone. Lateral career moves—shifts across functions, divisions or geographies—rarely carry the same weight as upward ones, even when they build more range. That perception keeps many employees from considering them, even when the move might offer the most learning and the broadest exposure. Gallup's Q4 2024 research reveals the gap: while nearly 70% of employees are looking for a new role within their organization, only 28% would consider a lateral one. Those who do make such moves report lower clarity, less alignment with their strengths and less frequent recognition. The long-term benefits are real, but the short-term experience is often discouraging. To understand the deeper dynamics at play, I spoke with Michael Waldman, professor of management and economics at Cornell University, and Matthew Bidwell, professor of management at Wharton. Both have studied internal labor markets, mobility and career progression for years. Their research underscores a simple but often missed truth: access isn't enough. Without clarity, support and cultural reinforcement, even the best-designed mobility programs stall. Why Talent Marketplaces Alone Aren't Enough Internal talent marketplaces promised a new era—matching employees to opportunities in real time, breaking down silos and reducing reliance on personal networks. But the reality is more complicated. Waldman explained why: 'The manager doesn't want to lose their better worker because that hurts their bonus—and firms don't usually give bonuses for workers who are promoted out of your division and do well. If they did, it could change those incentives.' He also pointed to the signaling challenge. 'Promotions signal ability. Giving someone more responsibility without a title change doesn't send a clear signal to others that they've developed.' Bidwell added, 'Managers aren't rewarded for being net contributors to the broader company. They're rewarded for getting their team's work done, not for releasing talent into the system.' And yet, Waldman's research shows a clear upside: workers who are laterally moved are more likely to be promoted and experience greater wage growth over time. The path exists, but too few are supported to take it. 'Most lateral moves still happen through informal networks,' Bidwell said. 'If that's the only route, a lot of people get missed.' The Ladder Reflex In most leadership conversations I've been part of, career development still starts with a vertical frame. Talent reviews focus on 'next steps,' usually defined as the next level up. Growth is still most often defined as moving upward. I've watched org charts become templates for potential. Candidates plotted, 'ready now' or 'ready soon' labels attached, and the expectation set: wait your turn, move higher. But the best organizations interrupt this pattern. They begin talent reviews by asking who moved across the business. They look for transitions that added capability across functions, not just within them. Some lateral moves come with more responsibility but no support—what Dr. Laurence J. Peter called pseudo-promotions. They keep talent in the company but do little to help them grow. Waldman points out that without context, new teams often don't know what an internal hire brings, forcing them to prove themselves all over again. And in a world where AI is reshaping roles, skills and teams, clinging to vertical models only narrows future options. Consider Priya, a high-performing marketing lead who transitioned into product strategy. The move looked smart on paper. In practice, there was no onboarding, unclear expectations and no acknowledgment of her prior success. Six months in, she was gaining traction—but the rough start left her questioning whether her company truly supported internal mobility or just talked about it. Priya's experience reflects a broader issue: lateral moves are often treated as individual experiments rather than shared commitments. Now take David, a finance manager who moved into operations. His company had built a clear internal mobility system: a regularly updated skills inventory, a dedicated career advisor and a playbook for onboarding internal hires. His first month was structured around learning, with clear milestones reviewed by both his former and current managers. A year later, he'd led a cost-reduction initiative that drew on both his finance background and new operational insights. That move positioned him for an executive role the following year. David's success wasn't just about his ability. It was shaped by the system around him. What Great Companies Do Making lateral moves work requires more than a platform. It takes visibility, structural support and shared accountability. As Waldman noted, 'There are lots of things firms can do to avoid talent hoarding, but those things are costly—so sometimes they don't happen.' Bidwell emphasized that preparation matters just as much as the move itself: 'Often a lot of the process happens before the move—building skills, offering short‑term opportunities to prepare someone for the shift.' He also pointed to what kind of lateral moves tend to matter most: 'People who seemed to be benefiting were the ones moving to a different function. Getting broader functional experience, learning more about how the business operates—that was more valuable than doing the same thing somewhere else.' So what does it take? Here are six strategies to help lateral career movement become a growth engine, not a sideline. Six Ways to Make Lateral Moves Work Share stories of lateral moves in company updates—not as policy footnotes but as real growth journeys. Celebrate them with the same energy as promotions. They signal momentum. Internal movers need a reintroduction. That means a thoughtful onboarding plan, context around their past wins and the same level of support you'd give an external hire. Don't just show vertical paths. Highlight real examples of lateral steps that unlocked broader roles later. Show that sideways can lead forward. Reward leaders who grow and release talent. During talent reviews, ask: who developed across the business this year? What enabled those moves? Create roles or programs that help employees explore new functions, assess transferable skills and prepare for moves. Layer in learning pathways built specifically for internal transitions. Make it part of the culture—not just the scorecard—to celebrate leaders known for developing and moving talent. And track who never does. Hoarding is a systems issue, not just a personal one. Building A System Around The Lateral Move When lateral career moves are overlooked or unsupported, companies don't just stall talent. They stall possibility. Innovation slows. Succession pipelines shrink. Employees grow disengaged when the only visible path doesn't match their skills. Lateral movement shouldn't be a gamble or a test of perseverance. It should be one of the ways organizations build range, depth and future leadership. As Bidwell put it, 'If talent mobility is invisible, it doesn't feel like a real option to the employee or the manager.' Movement alone doesn't shape careers. It's what surrounds the move—support, visibility, and context—that defines its impact.
Fast Company
10-07-2025
- Business
- Fast Company
The next generation of business leaders must be adaptable
When my marketing role evolved to include customer success and renewals, some naturally expressed confusion on why a CMO with established expertise and an already large remit would willingly take on more. This confusion was not among colleagues (I'm fortunate enough to be part of a very supportive environment!) but among others inside and outside of my network. Looking back, that decision reinforced something I believe is a career accelerator and crucial in leadership. It's a lesson I've shared with many young professionals and I believe others should take it to heart. Adaptability defines who will lead tomorrow's companies and who won't. Here's how to think about becoming more adaptable. Break artificial barriers Sometimes we box ourselves in with professional or personal labels. 'I'm a marketer' or 'I'm an engineer' or 'I'm a mother' becomes both identity and limitation. These labels feel safe in a chaotic world. They create boundaries, but they can also limit growth. I've seen smart, capable young professionals turn down opportunities with a quick 'that's not in my job description.' They build walls around their roles, thinking they're creating safety without fully appreciating the downstream impact to their career growth. My shift from marketing into customer success happened deliberately. I wanted to understand the full customer journey firsthand. And now, every time I push beyond my comfort zone, I gain insights that change how I approach all aspects of our business. Look at the full picture Working across both marketing and customer success showed me connections I'd have missed otherwise. When you handle both sides of the customer relationship, patterns start to appear. You notice how your early marketing messages set expectations that affect renewal conversations months later. You spot the gaps between what attracts customers initially and what keeps them around. This full-picture view prepares you for executive roles in ways specialization can't. Senior leaders need to synthesize information from across departments—tough to do when you've only seen one slice of the business. Ride the wave of change Young professionals today face relentless workplace transformation. Technologies reshape entire industries overnight. Business models evolve constantly. People who excel amid this chaos don't resist change—they embrace it. When unfamiliar challenges crop up, they lean in rather than back away. This is something I strive to instill in my team and my children. When we are not afraid to take on unfamiliar challenges and we don't accept perceived limitations, we create permission for others to do the same. I've witnessed this ripple effect repeatedly. One person's willingness to push boundaries inspires colleagues, friends and family to reconsider their own self-imposed constraints and embrace a growth mindset. How to build your adaptability muscles Getting comfortable with change takes practice: Jumping into cross-functional projects exposes you to different departments Consider sideways moves before focusing solely on climbing up Ask questions about parts of the business you don't touch daily Find mentors with backgrounds different from yours Tackle unfamiliar tasks with curiosity instead of anxiety If someone requests your help with a task that falls outside of your area of expertise, view it as a chance to develop and expand your skills. Find new routes Adaptability opens doors that might otherwise stay shut. Reaching senior leadership often means finding alternate routes when traditional paths prove blocked. The biggest barriers to professional growth often aren't external obstacles or lack of opportunity, they're the invisible ceilings we build for ourselves. Connect the organization People who move between different functions bring unique value—they bridge communication gaps. They translate between specialized teams that struggle to understand each other. They spot problems and opportunities others miss. Companies facing complexity need leaders who make connections. When you demonstrate this skill, you stand out dramatically from peers who excel only in their specialty. Get comfortable with discomfort Becoming adaptable means feeling uncomfortable regularly. Stepping into new territory triggers self-doubt, but over time builds your confidence to trust your judgment. But, here's a poorly-kept secret: This discomfort never completely goes away, even for experienced executives. What changes is how you respond to it. You start seeing discomfort as a sign of growth rather than failure. Young professionals aiming for leadership positions gain an edge with this mindset shift. While others avoid challenging situations, you'll build versatility that makes you increasingly valuable. I project—with confidence—that we'll see leaders of tomorrow who continuously reinvent themselves, crossing boundaries, embracing challenges outside their comfort zone, and bringing diverse perspectives together. The real question: When unexpected opportunities appear, will you take them? I definitely think you should.
