Lateral transfers can enhance operations and improve your company. 
While lateral transfers provide new and exciting opportunities to your employees, not everyone agrees that these transfers are positive. Understand the pros and cons of lateral transfers as you help employees decide if they should accept a new position.
Pros of Lateral Transfers
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Join a Better Suited Team
A boss and co-workers can make or break an employee’s workplace experience. With a lateral transfer, employees may find the team that’s best suited to their personality and work style, which reduces stress and enhances their job satisfaction and enjoyment.
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Enhance Marketability
Taking on a different role provides employees with opportunities to learn and master new skills. They enhance their brand, resume, visibility and marketability thanks to their expanded capabilities.
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Boost Future Promotional Chances
When a higher management position opens within the company, the best candidates often have the most experience. Employees who have accepted lateral transfers possess diverse knowledge of numerous departments in the company and possess an advantage over other candidates.
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Achieve Career Goals
Employees may want to change career paths, expand their skill set or explore other opportunities. Instead of moving to a new company, they can accept a lateral transfer and achieve their career goals in their current and familiar environment.
Cons of Lateral Transfers
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Maintain a Stagnant Salary
Your company’s seniority perks and employee benefits package, including insurance, vacation time and 401(k) program, will typically remain the same no matter which department an employee works in. Lateral moves often do not include a salary upgrade, though. Employees who want to make more money may balk at a transfer that doesn’t include a financial incentive.
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Accept a Career Detour
Employees with specific career goals may fear that a lateral transfer will prevent them from moving forward. They could lose momentum, miss out on valuable skill acquisitions or get stuck in a position and become sidelined from achieving the success they want.
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Stifle Professional Development
Moving up the corporate ladder increases opportunities for professional development. Employees may prefer not to transfer laterally if the move will stifle their chances to learn new skills and grow professionally.
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Become Dissatisfied at Work
Some lateral transfers improve an employee’s job satisfaction, but there is a chance that the employee will not gel with the new team or enjoy the new responsibilities. The resulting job dissatisfaction can be challenging, especially if this move will last long-term.
Lateral transfers can provide numerous benefits and potential pitfalls to employees. Use this list of pros and cons to help your employees decide if a lateral transfer is right for them.
For information about protections and coverage related to transfer-site operations, see Transfer Station Insurance.
If your organization handles liquids or specialized transfer services and you need industry-specific coverage options, see Insurance for Liquid Transfer Services. If an employee or manager needs help evaluating whether a move makes sense for their career, talk to an agent.
Frequently Asked Questions
What is a lateral transfer?
A lateral transfer is a move to a different role or department at the same level of responsibility and pay within a company.
Will my salary usually change with a lateral transfer?
Most lateral transfers do not include a salary increase, though benefits and seniority typically remain the same.
Can a lateral transfer help my long-term career?
Yes — it can broaden skills and visibility across the company, which may improve chances for future promotions.
How should an employee decide whether to accept a lateral transfer?
Evaluate how the new role aligns with career goals, potential skill growth, team fit and compensation expectations before deciding.