Nowa strona 1 » How to Design Lateral Career Paths for Functional and Cross-Functional Growth

Creating Opportunities for Broadening Expertise and Developing Versatile Leaders

Introduction: The Power of Lateral Career Moves

In today’s dynamic work environment, employees are increasingly looking for opportunities that go beyond traditional vertical career ladders. Lateral career paths—movements across functions or departments—have emerged as an effective strategy for enhancing employee engagement, broadening skillsets, and creating more agile teams. When strategically designed, lateral moves offer significant benefits to both employees and organizations.

Lateral career paths support functional growth, where employees can deepen expertise within their area of specialization, and cross-functional growth, where employees gain experience and skills in different areas of the business. This guide will walk HR leaders through the process of designing lateral career paths that facilitate both functional and cross-functional growth while aligning with organizational needs.

Step 1: Define the Strategic Role of Lateral Career Paths

Before diving into the design of lateral career paths, it's crucial to first understand their strategic value for both employees and the business. Lateral moves are not simply an alternative to promotions; they are a tool for developing well-rounded employees, enhancing talent retention, and creating flexible, adaptable teams.

Key Benefits of Lateral Career Paths:

Skill Development: Employees gain exposure to new areas of the business, allowing them to develop broader competencies and become more versatile in their roles.
Increased Engagement: Offering lateral career opportunities can keep employees motivated, particularly when they feel their growth isn’t limited to a linear progression.
Flexibility and Agility: Employees with diverse experiences are better equipped to respond to shifting business priorities and challenges.
Cross-Functional Collaboration: Employees moving laterally across departments foster collaboration and break down silos, leading to a more cohesive, communicative workforce.

Example:
At a multinational company, lateral moves were used to strengthen cross-functional knowledge. Employees in customer service roles were encouraged to move into product management positions to gain a deeper understanding of product development. As a result, the company saw a 10% increase in customer satisfaction due to better communication between teams.

Step 2: Map Out the Functional and Cross-Functional Career Pathways

To build effective lateral career paths, HR leaders must map out the functional and cross-functional pathways available within the organization. This requires a comprehensive view of the roles and responsibilities within different departments, as well as an understanding of the skillsets needed to excel in various functions.

Key Elements to Map Out:

Functional Career Paths:
These paths allow employees to deepen their expertise within a specific function or department. For example, an employee in a marketing role could move laterally into a product marketing position, where they gain more specific knowledge of product-related marketing strategies.
Cross-Functional Career Paths:
These paths involve employees transitioning to roles in completely different functions, fostering a broader skillset. For example, an employee in operations could move laterally into sales or customer service, gaining new perspectives on customer-facing roles.
Competency Mapping:
Identify the competencies and skillsets that employees need to move successfully into these roles. This can include both technical skills (e.g., data analysis, project management) and soft skills (e.g., communication, leadership).
Role Clusters:
Group similar roles across departments that share common skills and experiences. This helps HR teams identify potential lateral moves for employees and makes it easier for employees to see which options are available.

Example:
A consulting firm mapped out lateral career paths for their junior consultants, creating pathways into roles such as business development, research, and analytics. This enabled employees to explore different functional areas while building transferable skills that could contribute to their long-term development.

Step 3: Develop a Clear Communication Plan for Lateral Mobility

For lateral career paths to succeed, employees must be made aware of the opportunities available to them. This requires a clear and transparent communication strategy that promotes the benefits of lateral moves and provides guidance on how to navigate them.

Key Communication Strategies:

Job Postings:
Regularly post available lateral roles within the company to encourage employees to explore opportunities in other functions. Ensure that these postings are easily accessible and clearly state the benefits of lateral moves.
Leadership Support:
Managers should actively encourage lateral movement and support employees in exploring career options outside their current function. Leaders can share success stories and provide guidance on how to build skills for different roles.
Career Conversations:
Foster open discussions between managers and employees about career aspirations and lateral opportunities. Managers should explore whether employees are interested in broadening their skillsets or taking on new challenges in different areas.
Internal Networking:
Create opportunities for employees to network across functions, such as cross-departmental mentoring programs or job shadowing initiatives. This can help employees identify potential areas of interest for lateral movement.

Example:
A tech company created a monthly internal newsletter showcasing success stories of employees who moved laterally into different roles. This not only informed employees about opportunities but also provided real-life examples of how a lateral move could contribute to their growth.

Step 4: Create Development Programs to Support Lateral Moves

Lateral moves can only be successful if employees are equipped with the necessary skills and knowledge to excel in their new roles. HR leaders should design development programs that support employees as they transition laterally into new functions or areas of expertise.

Key Development Initiatives:

Training and Development:
Provide employees with training programs tailored to the specific skills needed for lateral moves. This could include technical training (e.g., financial analysis for a move from marketing to finance) or soft skills development (e.g., leadership training for a move into management).
Job Rotation Programs:
Implement job rotation initiatives that allow employees to gain experience in different departments or roles. This gives them a deeper understanding of the business and prepares them for future lateral transitions.
Mentorship and Coaching:
Assign mentors or coaches to employees moving laterally, especially if they are transitioning into a completely new functional area. These mentors can provide guidance, support, and advice throughout the transition period.
Onboarding for New Roles:
Design an onboarding process that’s specifically tailored for lateral moves. This should focus on helping employees understand the nuances of the new role, the team dynamics, and the skills required to succeed.

Example:
An automotive company created a job rotation program in which employees spent 6-12 months working in different departments, such as sales, logistics, and engineering. As a result, employees gained comprehensive knowledge of the business, and the company was able to fill roles more effectively, with 20% higher internal mobility rates.

Step 5: Measure Success and Continuously Improve

To ensure that lateral career paths are successful, it’s essential to measure their impact and continuously improve the process based on feedback and data. Key performance indicators (KPIs) should be established to track the effectiveness of lateral moves, and adjustments should be made as necessary to optimize the system.

Key Metrics for Measuring Success:

Employee Retention:
Measure whether employees who have taken lateral moves are more likely to stay with the company. High retention rates indicate that employees value the development opportunities provided by lateral mobility.
Engagement and Satisfaction:
Conduct employee surveys and interviews to gauge satisfaction with lateral career opportunities. Employees who feel their career growth is being supported are more likely to stay engaged and committed to the organization.
Career Growth Outcomes:
Track the long-term career growth of employees who take lateral moves. Are they being promoted within the same department, or do they take on new leadership roles in other areas?
Cross-Departmental Collaboration:
Measure how well employees in lateral roles collaborate with different teams. Increased collaboration across functions often signals the success of cross-functional growth initiatives.

Example:
A financial services firm tracked the career progression of employees who participated in their lateral movement program. They found that 70% of employees who took lateral moves within the first two years of employment received promotions within the following 18 months, signaling that lateral paths were a strong indicator of future leadership potential.

Conclusion: A Strategic Approach to Functional and Cross-Functional Growth

Lateral career paths are a powerful strategy for both functional growth and cross-functional mobility, enabling employees to broaden their skills, increase engagement, and contribute to a more agile and collaborative workforce. By carefully designing and implementing lateral career moves, HR leaders can help employees gain valuable experiences while building a more versatile, resilient organization.

As the workplace continues to evolve, organizations that prioritize lateral career paths will be better positioned to retain top talent, encourage internal mobility, and foster a culture of continuous growth and development.