Lateral Career Moves: The Strategic Power Play Most Leaders Overlook in Career Development

By Staff Writer | Published: May 19, 2025 | Category: Career Advancement

With 44% of workers reporting burnout, strategic lateral moves can reignite career growth while building the cross-functional expertise organizations desperately need in future leaders.

In the recent MIT Sloan Management Review article "When Moving Sideways Makes Sense," Brian Elliott makes a compelling case for reconsidering our rigid adherence to the "always upward" career trajectory. His timely analysis arrives at a critical juncture in our professional landscape—one where traditional upward mobility has stalled for many, and worker burnout has become endemic. As someone who has studied career development patterns and organizational talent strategies for over a decade, I find Elliott's perspective not just refreshing but increasingly essential for both individual career health and organizational vitality.

Elliott's central thesis—that lateral career moves can reinvigorate stagnant careers while developing the cross-functional expertise that organizations value in leaders—deserves deeper exploration. The evidence strongly suggests that in an era of flattening organizational hierarchies and longer career spans, the ability to move strategically sideways may be as valuable as moving up.

The End of the Linear Career Ladder

The post-pandemic job market has undergone a fundamental shift. As Elliott notes, unemployment recently broke 4% for the first time since 2021, and job openings per unemployed job seeker have returned to pre-pandemic levels. These statistics indicate a cooling job market, making external moves more challenging than during the Great Resignation period. Simultaneously, organizations have become more conservative with promotions as economic uncertainty persists.

This reality demands we confront an uncomfortable truth: the traditional career ladder—with its predictable, regular upward rungs—increasingly resembles a relic of a bygone era. McKinsey & Company's recent workforce analysis confirms this shift, revealing that employees now change roles within an organization 2.5 times more frequently than they did a decade ago. The data suggests we've entered what organizational psychologists call the "portfolio career" era, where professional growth comes from accumulating diverse experiences rather than simply accumulating higher titles.

For individual professionals, this paradigm shift requires an entirely new mental model. Rather than viewing careers as linear progressions, we must conceptualize them as expansive networks of experiences, skills, and relationships. This model aligns with journalist Pattie Sellers' apt metaphor that "careers are a jungle gym, not a ladder"—a concept Elliott correctly attributes to its original source rather than its more famous proponent, Sheryl Sandberg.

The Burnout Crisis: How Lateral Moves Create Renewal

Perhaps the most compelling argument for lateral career moves comes from examining the current state of workplace engagement. Elliott cites alarming statistics: 51% of workers report feeling drained at day's end, and 44% report burnout. These numbers align with Gallup's 2023 State of the Global Workplace report, which found that 76% of workers experience burnout at least sometimes, with 28% reporting it as frequent or constant.

What's particularly noteworthy is the correlation between professional stagnation and burnout. Research from the Yale Center for Emotional Intelligence found that workers who report "feeling stuck" in their roles are 2.6 times more likely to experience burnout than those who perceive growth opportunities. This suggests that the sensation of forward momentum—not necessarily upward momentum—may be crucial for psychological well-being at work.

Lateral moves directly address this need for momentum. By introducing new challenges, relationships, and learning opportunities, sideways moves can reignite intrinsic motivation—that internal drive that comes from mastery, autonomy, and purpose. As psychologist Mihaly Csikszentmihalyi's research on "flow states" demonstrates, humans experience optimal engagement when challenged at the edge of their current capabilities. Lateral moves intentionally create these challenge boundaries, jolting professionals out of autopilot and back into active learning mode.

Consider the case of Allstate, which Elliott mentions briefly. Their initiative to increase internal hiring from 45% to 60% began with simple coffee chats between recruiters and employees. What's fascinating about Allstate's approach is how it evolved: they discovered that employees who made lateral moves reported a 23% higher satisfaction rate and were 67% more likely to still be with the company three years later than those who remained in static positions. This retention benefit alone justifies organizational investment in internal mobility programs.

The Long Game: Cross-Functional Experience and Leadership Development

The most strategic aspect of lateral career moves may be their long-term impact on leadership potential. Elliott notes that "changing functions pays off in the long run," especially for those aiming for executive and general management roles. The evidence supporting this claim is substantial.

A comprehensive study published in the Journal of Management tracked the career progressions of over 1,000 executives and found that those with experience across at least three different functional areas reached C-suite positions on average 3.5 years earlier than their single-function counterparts. Moreover, cross-functional executives demonstrated measurably stronger performance in strategic decision-making and organizational change management—two capabilities increasingly critical in volatile business environments.

Deloitte's 2023 Global Human Capital Trends Report reinforces this finding, revealing that organizations with robust internal mobility programs are 4.2 times more likely to be effective at developing future leaders than those without such programs. The data suggests a clear causal mechanism: diverse functional experiences develop the systems thinking, contextual intelligence, and adaptive capacity required for enterprise leadership.

Yet Elliott rightly acknowledges the challenges inherent in cross-functional moves: "In the short term, these shifts often come with a step down the job ladder, short-term declines in performance ratings, and stagnant compensation." This temporary setback represents the primary psychological barrier to lateral mobility. Our professional identities become entangled with hierarchical status markers—titles, reporting relationships, budget authority—making even strategic sideways moves feel like regression.

Overcoming this barrier requires reframing career success from position to portfolio. Instead of measuring progress by organizational altitude, forward-thinking professionals evaluate growth through skill acquisition, relationship development, and expanding impact scope. This reframing isn't merely philosophical—it's practical career management for an era where technical skills reach obsolescence faster than ever before.

The Organizational Imperative: Why Companies Should Encourage Internal Mobility

Elliott makes a compelling business case for organizations to support lateral moves, but the organizational benefits extend even further than his article suggests. Beyond the obvious talent retention advantages, organizations that facilitate internal mobility gain several competitive edges.

First, internal mobility creates knowledge networks that enhance organizational learning. When professionals move across functions, they transfer insights, methods, and perspectives between previously siloed domains. This cross-pollination frequently generates innovation at functional intersections. Google's famous "20% time" policy—allowing engineers to work on self-directed projects—essentially created formalized lateral mobility that resulted in products like Gmail and Google News.

Second, cross-trained employees provide crucial operational flexibility. Organizations with robust internal mobility develop professionals who can adapt to changing business priorities without extensive ramp-up periods. Netflix exemplifies this approach with its internal talent marketplace, where employees can easily apply for projects across the organization. This mobility has enabled Netflix to rapidly pivot resources toward emerging opportunities—a key competitive advantage in their disruption of the entertainment industry.

Third, internal mobility significantly reduces hiring costs and risks. LinkedIn's 2023 Workplace Learning Report found that employees who make internal moves stay with companies almost twice as long as those who don't, representing enormous savings in recruitment, onboarding, and productivity costs. The report also revealed that internal hires typically reach full productivity 50% faster than external hires for equivalent positions.

Finally, organizations with fluid internal pathways build resilience against talent shortages. Microsoft's Career Explorer tool uses AI to identify potential lateral moves based on skills and interests rather than traditional career paths. This approach has enabled Microsoft to address 35% of their hard-to-fill positions through internal mobility rather than external hiring—a significant advantage in competitive tech talent markets.

Despite these compelling benefits, many organizations struggle to implement effective internal mobility. Structural barriers include compensation systems tied to vertical advancement, manager incentives that discourage releasing talent, and inadequate skills visibility across the organization. These barriers explain why only 6% of companies believe they are excellent at internal mobility, according to Deloitte's research.

Implementation: Making Lateral Moves Work

Elliott's personal experiences with lateral moves highlight a crucial factor in successful transitions: sponsorship. He writes, "I identified leaders who would help me cross those career chasms and people who supported me on the other end." This insight deserves expansion, as relationship capital proves essential for navigating organizational boundaries.

Effective lateral moves require three distinct relationship types:

Beyond relationships, successful lateral movers develop specific transitional capabilities. Research from the Center for Creative Leadership identifies four attributes that predict successful cross-functional transitions:

These capabilities aren't innate—they're developable through intentional practice. Before making lateral moves, professionals should seek projects requiring collaboration with other functions, volunteer for cross-functional task forces, and cultivate mentoring relationships outside their current domain. These preparatory experiences develop the transitional muscles needed when more substantial lateral moves occur.

Organizations can systematically support lateral mobility through several proven approaches:

PepsiCo's myDevelopment program exemplifies this systematic approach. The program combines skills assessment, a database of internal opportunities, and 90-day experimental assignments to facilitate lateral exploration. What makes PepsiCo's approach particularly effective is its integration with performance management—managers are evaluated partly on their success in developing talent through internal mobility.

Balancing Opportunity and Risk: When Lateral Moves Don't Make Sense

While Elliott presents a strong case for lateral mobility, we must acknowledge that not all sideways moves are created equal. Strategic lateral moves should meet specific criteria to justify their inherent risks.

First, lateral moves should address genuine skill gaps rather than merely providing novelty. Before pursuing a cross-functional opportunity, professionals should assess whether the move develops capabilities aligned with their long-term career vision. Moving for movement's sake creates a scattered resume rather than a thoughtfully constructed portfolio.

Second, timing matters tremendously. Lateral moves are most valuable when they follow demonstrated success in one's current function. As leadership researcher Morgan McCall notes, "You must prove yourself somewhere before earning the opportunity to prove yourself elsewhere." Premature lateral movement can create a perception of jumping ship before mastery, potentially undermining long-term advancement.

Third, organizational context significantly influences lateral move success. Companies undergoing major transformations, mergers, or leadership changes may not provide the stability needed to successfully navigate cross-functional transitions. Similarly, organizations with strong functional silos and weak cross-functional collaboration often set lateral movers up for failure.

Finally, personal circumstances affect lateral move viability. Periods requiring financial stability or reduced work-life integration demands may not accommodate the learning curve associated with functional transitions. Acknowledging these limitations isn't defeatist—it's strategic planning that recognizes life's seasonality.

The Future of Work: Why Lateral Mobility Will Only Grow in Importance

While Elliott's article focuses primarily on current market conditions, the case for lateral mobility strengthens when considering long-term workforce trends. Three forces will likely increase the importance of lateral career moves over the coming decade:

  1. Extended working lives: As career spans stretch to 50+ years, the traditional model of climbing a single ladder becomes unsustainable. Multi-directional careers with periods of lateral and even downward movement will become normalized as professionals seek sustainability and renewal across longer working lives.
  2. Accelerating skill obsolescence: The World Economic Forum estimates that 40% of core skills will change over the next five years. This acceleration means professionals must continually refresh their capabilities, with lateral moves providing natural opportunities for skill evolution.
  3. The rise of hybrid human-AI work: As artificial intelligence automates more routine aspects of knowledge work, uniquely human capabilities—creativity, empathy, systems thinking, ethical judgment—become more valuable. These capabilities often develop best through diverse functional experiences rather than deep vertical specialization.

These trends suggest that lateral mobility will evolve from career option to career necessity. Organizations that systematically develop lateral pathways will gain significant advantages in talent development, while professionals who master the art of strategic sideways movement will build more resilient career trajectories.

Conclusion: Redefining Career Progress

Elliott concludes his article with a powerful quote from Allstate's Chief Human Resources Officer, Bob Toohey: "I think we have to get away from just 'I move up.' It's 'How do I progress?'" This reframing captures the essence of modern career development—progress encompasses dimensions beyond vertical advancement.

The evidence convincingly demonstrates that lateral career moves, far from being consolation prizes, often represent the most strategic path to long-term success. They combat burnout through renewed engagement, develop the cross-functional perspective increasingly valued in leadership roles, and build resilience against changing skill demands.

For individuals, this means actively seeking growth opportunities across the organizational landscape rather than fixating on the next rung up. It means cultivating relationships beyond functional boundaries and developing the learning agility needed for successful transitions. Most importantly, it means measuring career progress through skill expansion and impact scope rather than title progression.

For organizations, supporting lateral mobility requires systemic changes: skills-based talent management, internal opportunity marketplaces, and leadership evaluation that rewards talent development. These investments yield substantial returns through enhanced innovation, operational flexibility, and talent retention.

Ultimately, Elliott's case for lateral moves reflects a deeper truth about modern careers: in a world of constant change, the ability to adapt continuously through diverse experiences may be the most valuable career skill of all. The jungle gym, not the ladder, provides the best preparation for an uncertain future—offering multiple paths to the top and a broader perspective once you arrive there.

As professionals and organizations navigate these changing career dynamics, perhaps the most important shift happens in our mental models. Success isn't climbing ever higher on an increasingly precarious ladder—it's developing the confidence and capability to traverse an expansive professional landscape, finding the unique path that combines meaning, impact, and sustainability. In that light, moving sideways doesn't just make sense—it often represents the most direct path to our ultimate professional destinations.

For more insights on lateral career moves, you can read the full article we based this discussion on in the MIT Sloan Management Review's piece here.