Definition: Lateral job transfer is a move from one position to another within the same organizational level in a company, where the responsibilities, pay grade, and status are approximately equivalent to the previous position.
In a lateral transfer, an employee is not promoted or demoted—they are shifted to a position with a different set of responsibilities that require a similar skill set and experience level.
Lateral transfers can be part of career development strategies, to help employees gain a broader set of skills and experiences or to align better with their career interests or strengths.
They can also be used to fill vacancies or to move employees into roles where they are expected to be more productive or satisfied. It can be a mutual decision between the employee and the management, or sometimes it might be initiated by either party based on various circumstances and needs.
Benefits of lateral job transfer
For the Employee
- Skill Development: Lateral transfers can help employees develop new skills and competencies, as they are exposed to different facets of the business.
- Renewed Engagement: Moving to a new role can reignite an employee’s passion and engagement with their work, particularly if they were feeling stagnant or unchallenged in their previous role.
- Career Path Diversification: Employees can build diverse careers through lateral transfers, leading to more significant future opportunities.
- Networking: By working in different departments or teams, employees can build a more extensive network within the organization, which can be beneficial for future opportunities or collaborations.
- Job Satisfaction: Exploring different roles without leaving the company can increase job satisfaction, as employees might find a role that aligns better with their interests and strengths.
- Reduced Burnout: If the transfer is to a role with a different pace or less stress, it can help prevent burnout by giving the employee a fresh perspective and new challenges.
For the Organization
- Talent Retention: Offering lateral transfers can help retain talented employees who might otherwise leave the company for new opportunities or challenges.
- Flexibility and Adaptability: Organizations can become more adaptable by moving skilled employees to areas where they are needed most, without hiring new people and going through the onboarding process.
- Knowledge Sharing: Lateral transfers can facilitate sharing knowledge and best practices across different organizational departments or teams.
- Cost-Effectiveness: It can be more cost-effective to transfer existing employees laterally compared to the costs associated with hiring new employees and the potential costs associated with high turnover rates.
- Cross-Functional Teams: Organizations can build more robust cross-functional teams by encouraging lateral mobility, which can foster innovation and improved problem-solving.
- Succession Planning: By allowing employees to gain experience in various roles, organizations can better identify individuals with the skills and experience needed for leadership positions in the future.
Reasons why employees seek lateral transfer
- Seeking New Challenges: Employees think their current position no longer offers growth or challenges and may seek a lateral transfer to reignite their passion and engagement.
- Skill Utilization: Employees think that their skills and abilities are underutilized in their current role, and a lateral transfer can provide an opportunity to use their skills better.
- Personal Development: To foster personal and professional growth, they wish to learn new skills or gain exposure to different organizational areas, which a lateral transfer can facilitate.
- Work-Life Balance: Changing personal circumstances, such as family commitments or health issues, can prompt an employee to seek a lateral transfer to a role that offers a better work-life balance.
- Conflict Resolution: In cases where there might be interpersonal conflicts or issues with supervisors or team members, a lateral transfer might be a way to resolve these issues without escalating them further.
- Alignment with Career Goals: An employee might have long-term career goals that are better aligned with a different role within the organization, and a lateral transfer can be a step toward achieving these goals.
- Geographical Relocation: Sometimes, employees request a lateral transfer due to geographical relocation, either to move closer to family or for other personal reasons.
- Preventing Burnout: If employees feel nearing burnout in their current role, they might request a lateral transfer to prevent burnout and sustain their career momentum.
- Project or Client Preference: An employee can prefer working on specific types of projects or with particular clients, which a lateral transfer can facilitate.
- Organizational Changes: Mergers, acquisitions, or restructuring can prompt employees to seek transfers to more stable positions or offer better prospects.
- Educational Pursuits: If an employee has recently acquired new qualifications or skills, they will seek a role where they can apply this new knowledge.
- Cultural Fit: They can seek a transfer to a department or team where they feel the organizational culture or working style better fits their personality and working style.
FAQ
How do we facilitate a smooth transition during a lateral transfer?
Facilitating a smooth transition involves providing appropriate training and orientation for the new role, ensuring clear communication between all parties involved, and setting up a mentorship or support system for the transferring employee.
What are the potential risks or downsides of lateral transfers?
Potential risks include disruption to the teams involved, a period of reduced productivity as the employee adjusts to the new role, or a potential mismatch between the employee’s skills and the requirements of the new position.
How can we assess the success of a lateral transfer?
The success of a lateral transfer can be assessed through regular performance reviews, feedback from the employee and their new team, and monitoring the employee’s engagement and job satisfaction levels in the new role.
Can lateral transfers be used as a development tool for potential leaders?
Yes, lateral transfers can be a valuable tool in leadership development programs, providing potential leaders with a broader base of experience and a more well-rounded skill set before taking on higher-level responsibilities.
Can I negotiate the terms of my lateral transfer?
While lateral transfers typically involve moving to a role at a similar level, there may still be room for negotiation, particularly regarding responsibilities, work arrangements, or development opportunities. It’s always a good idea to have a clear conversation with your supervisor or HR to understand and possibly negotiate the terms of the transfer.
What kind of support can I expect from the organization during my lateral transfer?
Usually, you can expect training programs, mentorship arrangements, or assistance from HR in adjusting to the new role. Make sure to communicate with the relevant departments to understand what support structures are available.