HCM GROUP

HCM Group 

HCM Group 

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19 May 2025

How to Build Lateral Growth Pathways and Non-Linear Careers

In an evolving workplace where agility and adaptability are prized, the traditional linear career ladder — progressing step-by-step in a single functional track — no longer reflects the realities or aspirations of many employees. Organizations committed to fostering sustained engagement, retention, and talent development are increasingly adopting lateral growth pathways and non-linear career models that emphasize broadening skills, experiences, and influence without requiring upward promotions.

This approach acknowledges that career success and fulfillment come in many forms, and progression is not solely measured by moving “up” the hierarchy. Instead, lateral moves, cross-functional shifts, and expanded roles enable employees to build versatility, deepen expertise, and contribute in diverse ways. For organizations, this model helps retain valuable talent by recognizing varied career ambitions and reducing the bottleneck of limited upward opportunities.

 

Why Lateral Growth and Non-Linear Careers Matter

Many organizations face the challenge of limited promotional opportunities, which can frustrate employees eager for advancement. Traditional promotion tracks tend to reward a narrow set of competencies — often managerial or specialist roles — leaving others without clear paths to growth. This limitation risks disengagement, turnover, and underutilized talent.

Lateral growth pathways offer an alternative, empowering employees to:

  • Expand their skill sets by taking on new roles or responsibilities in different functions or specialties.
  • Build broader business understanding through cross-functional experience.
  • Enhance career resilience by diversifying capabilities in response to market or technology changes.
  • Find personal fulfillment in meaningful work that aligns with their strengths and interests without the pressure of hierarchical advancement.

 

For the organization, encouraging lateral and non-linear careers promotes a dynamic, adaptable workforce capable of meeting evolving business needs.

 

Recognizing and Rewarding Lateral Movement

One of the critical enablers for successful lateral career pathways is a culture and reward system that values lateral moves as legitimate and desirable forms of progression.

 

Shift in Mindset and Language

The first step is changing the organizational narrative that equates “growth” solely with upward promotion. Communication from leadership should emphasize:

  • Lateral moves as valuable steps toward mastery and breadth.
  • Diverse career journeys as signs of development and ambition.
  • Recognition that influence and impact are not limited to hierarchical level.

 

Revising Performance and Reward Systems

To operationalize this mindset, organizations must ensure their performance management and reward frameworks support and incentivize lateral moves:

  • Career Milestones: Establish lateral moves as recognized career milestones within promotion frameworks, with defined criteria for successful transitions.
  • Compensation Parity: Review pay structures to avoid penalizing lateral movers by reducing salary or benefits. Compensation should reflect the value of the new role, not just seniority.
  • Recognition Programs: Develop formal recognition for employees who successfully navigate lateral transitions or expand their scope, such as internal awards or spot bonuses.
  • Promotion Equivalency: Create career levels that reflect skills and impact regardless of the traditional management vs. specialist distinction, allowing lateral growth to carry equivalent weight as upward movement.

 

Example: A global pharmaceutical company redesigned its career framework to treat lateral moves into emerging areas like digital marketing and data analytics as “horizontal promotions,” awarding increases and bonuses equivalent to those for managerial promotions. This helped shift employee perceptions and increased lateral moves by 30% in two years.

 

Designing Lateral Growth Pathways: Key Principles

To build effective lateral pathways, HR and leadership teams must design structures and processes that provide clarity, support, and legitimacy to non-linear career moves.

 

1. Define Clear Role Families and Competency Profiles

Lateral growth depends on transparent understanding of roles across functions, including required competencies, responsibilities, and potential development areas.

  • Create comprehensive role families that group jobs by skill sets and functions, allowing employees to see where they can move laterally within or across these families.
  • Map competencies and skills for each role to help employees identify gaps and align learning plans.

 

2. Create Lateral Career Maps

Instead of a single vertical career ladder, develop career maps that illustrate lateral moves as horizontal or diagonal paths, highlighting potential role switches, skill adjacencies, and growth opportunities.

  • Include example pathways for common lateral moves (e.g., marketing analyst to product manager, software engineer to UX designer).
  • Show multiple entry points and directions to encourage exploration.

 

3. Support Skill Development for Transition

Since lateral moves often involve learning new skills or adapting to different business contexts, robust learning and development support is critical.

  • Provide training programs, mentorship, and job shadowing to build competence.
  • Use skills assessments to tailor development plans aligned with lateral aspirations.
  • Encourage stretch assignments within current roles to build transferable skills.

 

4. Foster Manager and Employee Collaboration

Managers and employees should actively discuss lateral career interests during regular check-ins or career conversations.

  • Train managers to recognize lateral moves as growth opportunities and to support employees in exploring them.
  • Encourage employees to take ownership of their career exploration with manager support.

 

Use Cases for Expanding Scope Without Promotion

Lateral growth is not limited to changing jobs or functions. Employees can also expand their influence and development within their current roles or through additional responsibilities without formal promotion.

 

1. Job Enrichment and Enlargement

Adding new tasks or responsibilities to a current role — either deeper or broader — can stimulate growth.

  • Example: A customer service representative takes on quality assurance duties, learning analytical skills and contributing to process improvement.
  • Example: An IT analyst leads a cross-departmental task force on cybersecurity awareness, gaining leadership experience.

 

This approach can be formalized in performance goals or Individual Development Plans (IDPs) and recognized in appraisals.

 

2. Special Projects and Cross-Functional Initiatives

Assigning employees to lead or participate in special projects or temporary task forces exposes them to new challenges and stakeholders.

  • Projects often require new skills and foster visibility.
  • Participation is a powerful growth signal and builds a network beyond the employee’s usual team.

3. Job Rotations and Secondments

Temporary assignments to different roles or teams offer immersive lateral development without permanent moves.

  • Example: An HR business partner rotates into a change management role for six months.
  • Example: A finance analyst is seconded to a strategic planning group to develop business acumen.

 

These experiences diversify skills and prepare employees for future opportunities.

 

Measuring the Impact of Lateral Growth Initiatives

To validate and improve lateral growth pathways, organizations should track outcomes, including:

  • Participation rates in lateral moves, projects, and special assignments.
  • Employee engagement and retention metrics among lateral movers.
  • Skills development and competency improvements pre- and post-move.
  • Career satisfaction and perceived growth opportunities through surveys.
  • Business impact through project success rates or innovation metrics.

 

Challenges and Solutions

 

  • Challenge: Employees may fear lateral moves signal lack of ambition or “career setback.”
    Solution: Leadership must normalize lateral growth as strategic, and reward it visibly.
  • Challenge: Managers may resist releasing talent for lateral moves due to workload concerns.
    Solution: Engage managers in talent planning and emphasize long-term benefits of skill diversification.
  • Challenge: Lack of clarity on lateral options leads to confusion or missed opportunities.
    Solution: Develop clear career maps and communicate widely.

 

Conclusion

Building lateral growth pathways and embracing non-linear careers offers a compelling, modern alternative to traditional career progression. By recognizing and rewarding lateral moves, providing clear frameworks and support, and promoting diverse experiences both inside and outside formal roles, organizations empower employees to take ownership of dynamic, fulfilling careers. This approach not only enhances individual engagement and skills but also creates a more resilient and versatile workforce ready for the complexities of today and tomorrow.

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