Vertical vs Lateral Career Growth: Key Differences

Career growth is no longer a one-dimensional ladder where the only way forward is upwards. In the modern workplace, professionals are increasingly faced with a critical decision: should they pursue vertical growth, climbing the traditional hierarchy, or opt for lateral growth, expanding their skills and experiences by moving sideways across roles or functions?

Both approaches can shape a rewarding career, but each comes with its own advantages, challenges, and long-term implications. The choice between vertical and lateral career growth is not simply about job titles or pay rises; it’s about aligning your professional path with your skills, interests, and lifestyle goals.

In this guide, we’ll explore the key differences between vertical and lateral career growth, their benefits and drawbacks, real-world examples, and practical advice on how to decide which path is right for you.

Vertical growth: Definition & traits

Vertical career growth refers to the upward progression through a company’s hierarchy. It’s the most traditional model of advancement, often associated with promotions, increased responsibility, and higher financial rewards.

Professionals pursuing vertical growth are typically motivated by leadership opportunities, recognition, and the prestige that comes with advancing titles.

Role expansion

Each step upward brings broader responsibilities. For example, an individual contributor may progress to become a team lead, then a manager, and ultimately a department head. With each stage, the scope of decision-making grows, often involving larger teams, higher budgets, or more complex projects.

Leadership

Vertical growth often transitions individuals from technical or operational roles into positions of authority. Leadership in this context isn’t just about managing people, it’s about setting direction, influencing organisational strategy, and driving company culture.

Compensation

One of the most substantial advantages of vertical growth is financial. Promotions typically come with salary increases, performance bonuses, stock options, or other benefits. The link between upward movement and pay rise makes vertical growth highly attractive to those prioritising financial stability.

Seniority levels

Titles such as “senior manager,” “director,” or “vice president” serve as visible markers of vertical progress. These roles often come with external recognition, signalling both expertise and leadership status in the broader professional community.

Organisational hierarchy

Vertical growth positions employees higher in the company structure. This not only boosts visibility but also places them closer to executive decision-making circles, increasing influence within the organisation.

Career stability

Many professionals view vertical progression as the safest and most reliable path. By advancing, employees often secure greater job stability and longer-term tenure within the company.

Skill depth

A vertical path typically demands mastery of a specific domain. Specialists, such as engineers, lawyers, or finance professionals, often thrive in vertical growth because it rewards deep expertise.

Lateral growth: Definition & traits

Lateral career growth is about breadth rather than height. It involves transitioning into different roles, departments, or even industries, often without a change in title or an immediate salary increase.

While vertical growth is associated with climbing the corporate ladder, lateral growth is about expanding the foundation of your career.

Skill diversification

Lateral moves allow professionals to acquire new skills outside their original area of expertise. For example, a software developer may transition into product management, gaining business and communication skills while still leveraging their technical background.

Role transitions

Unlike upward promotions, lateral moves often involve shifting into entirely different job functions. This might mean moving from operations to HR, or from finance to marketing. These transitions expand professional horizons and create pathways to hybrid or leadership roles later in their careers.

Lateral mobility

In fast-changing industries, the ability to adapt is a career advantage. Lateral growth provides flexibility, making employees less vulnerable to automation, restructuring, or shifts in demand for specific skills.

Cross-functional exposure

Working across different functions gives professionals a comprehensive understanding of how an organisation operates. This knowledge is invaluable for future leadership roles, as it builds systems thinking and problem-solving across disciplines.

“Workers who are laterally moved in one period are more likely to be subsequently promoted and experience larger wage growth compared with workers who are not laterally moved.” —Stephen D’Angelo, Cornell University, 2021

Broader networks

Lateral growth often involves collaborating with new teams and stakeholders, as well as expanding professional networks both within and outside the company. These connections can open future opportunities and enrich professional perspectives.

“Get yourself in a position where you're working with people who you feel are stretching your abilities. It's what helps you grow. Put yourself in uncomfortable situations. I think often you'll surprise yourself.” —Sundar Pichai, CEO of Google

Adaptability

Constantly stepping into new roles strengthens resilience and adaptability. New roles bring new departments, new department cultures, new colleagues, teams and projects to be a part of. These qualities are increasingly valued in uncertain global markets.

Innovation potential

Exposure to diverse roles often sparks creativity. By viewing challenges from different perspectives, lateral movers are more likely to develop innovative solutions and gain cross-industry insights.

Side-by-side comparison table

Factor	Vertical growth	Lateral growth
Scope	Narrow, specialised mastery	Broad, cross-functional skills
Visibility	High within the company hierarchy	Broader across multiple teams or industries
Risk	Lower risk, predictable progression	Higher risk, uncertain long-term payoff
Pay	Directly linked to promotions	Not always immediate; potentially longer-term
Timeline	Structured and hierarchical	Flexible, non-linear

Benefits & drawbacks

Vertical growth: Pros

• Clear path with defined milestones
• Increased salary and benefits
• Prestige and recognition through titles
• Greater authority and influence

Vertical growth: Cons

• Limited to opportunities within the hierarchy
• Can lead to over-specialisation
• Higher stress and responsibility at senior levels
• Fewer opportunities to explore new areas

Lateral growth: Pros

• Skill diversification across functions
• Stronger adaptability in changing industries
• Expanded professional networks
• Potential stepping stone to leadership roles

Lateral growth: Cons

• Salary increases may not be immediate
• Lack of clear progression structure
• Risk of being perceived as “unfocused”
• Requires continuous learning and adjustment

2025 Career trends & hybrid paths

The choice between vertical and lateral growth is no longer a binary decision. Many professionals now pursue hybrid career paths, blending traditional and non-traditional approaches to gain breadth and depth in their careers. This shift reflects changing employee priorities, where flexibility, variety, and personal development often weigh just as heavily as traditional advancement.

Gig economy

The rise of gig and freelance work enables professionals to explore multiple roles, industries, and skill sets without being tied to a single employer. This diversification helps individuals build resilience against market changes and craft a career that aligns more closely with their interests. Employers, in turn, benefit from engaging talent with a broader perspective and cross-disciplinary expertise.

Growth flexibility

Employers are recognising that non-linear career journeys can bring fresh perspectives and creativity. Instead of penalising career changes, many organisations are beginning to embrace them as signs of adaptability and innovation. This cultural shift opens new opportunities for professionals to shape careers that reflect both personal passions and evolving business needs.

Hybrid moves

It’s increasingly common to combine lateral experiences with eventual vertical progression, for example, moving laterally into a new department before climbing up the leadership ranks. These hybrid moves enable professionals to develop a more comprehensive understanding of the organisation. Over time, this foundation can lead to more decisive, more empathetic leadership.

Remote-first opportunities

Global remote work opens doors for lateral moves across geographies, industries, and roles, broadening career horizons without relocation. Employees are no longer confined to local markets, and organisations can access diverse skill pools worldwide. This trend reshapes how careers evolve, with global mobility now achievable from home.

Skills-first hiring

Employers are shifting towards valuing skills over linear career paths. A lateral career filled with varied experiences can now be just as valuable as a vertical climb, especially in fast-changing industries. This approach reduces barriers for candidates with non-traditional backgrounds while encouraging continuous learning.

AI-driven career planning

AI-powered platforms are helping professionals map personalised career trajectories, suggesting both vertical and lateral options based on data. These tools analyse skills, market demand, and career history to provide tailored recommendations. As AI adoption grows, employees can make more informed decisions about hybrid career moves.

Portfolio careers

Some professionals pursue “portfolio careers,” combining part-time roles, freelance work, and side projects to build both vertical credibility and lateral diversity. This approach enables individuals to diversify their income streams while keeping their careers dynamic and future-proof. Portfolio careers are desirable to those seeking autonomy and a variety of opportunities.

Which path suits you? Decision toolkit

The right choice depends on your ambitions, personality, and lifestyle.

• If you value stability, financial growth, and prestige, vertical growth may be the better option.
• If you prioritise flexibility, learning, and resilience, lateral growth might be more suitable.
• If you want both authority and breadth, a hybrid path offers a balanced approach.

Self-reflection prompts

• Do I prefer deep expertise or a broad skill set?
• Am I motivated more by financial rewards or learning opportunities?
• How do I define success—title, influence, or adaptability?
• What risks am I willing to take?

Real-world examples

• Vertical growth: A finance analyst rises through the ranks to become Chief Financial Officer. Each step brings more responsibility, authority, and compensation.
• Lateral growth: A marketer moves into HR to work on employer branding, then transitions to operations. This breadth of experience positions them as a strong candidate for COO in the future.
• Hybrid model: An engineer moves laterally into product management, then climbs vertically into Head of Product.

Pitfalls to avoid & how to manage transitions

• For vertical growth: Avoid chasing promotions without ensuring you’re ready for the demands of leadership. Burnout is common.
• For lateral growth: Avoid making too many sideways moves without a clear strategy. It can create the perception of instability.
• For both: Always maintain a long-term vision. Use mentors, coaches, or career frameworks to align your moves with your goals.

For managers: Supporting vertical & lateral growth

Managers play a critical role in enabling employee growth by recognising individual strengths, aligning opportunities with career goals, and providing the right level of guidance and resources. Supporting both vertical and lateral growth paths not only helps employees advance in their chosen direction but also fosters a more engaged, versatile, and resilient workforce that can adapt to evolving business needs.

Coaching

Regular one-on-one sessions can help employees identify which growth path aligns with their strengths. These conversations also build trust and ensure that employees feel guided rather than pressured in their career choices.

Visibility

Promote both vertical and lateral opportunities within the company so employees see multiple pathways. This prevents the misconception that advancement only means promotion, encouraging people to explore different forms of growth.

Opportunities

Provide stretch assignments, job shadowing, or cross-functional projects that encourage both kinds of growth. Such initiatives expose employees to new skills and networks while keeping them challenged and motivated.

Career pathing frameworks

Create transparent frameworks that outline how employees can grow both vertically and laterally. Clear roadmaps reduce uncertainty, helping employees take ownership of their career progression.

Training & reskilling

Offer resources that help employees either deepen expertise or expand into new functions. This investment not only boosts individual confidence but also strengthens the organisation’s long-term adaptability.

FAQs

Is a lateral move considered a promotion?
Not always. A lateral move typically means moving into a new role without a higher title, but it can be a strategic step towards future promotions.

Will a lateral move affect salary?
Sometimes salaries remain the same, but lateral moves can lead to better pay later by building in-demand skills.

When should I prioritise vertical vs. lateral moves?
Choose vertical growth when you’re ready for leadership and want financial progression. Choose lateral growth when you’re looking to diversify skills, change industries, or prepare for long-term adaptability.

Conclusion

There is no single “right” path when it comes to vertical vs lateral career growth. Both offer opportunities to advance, learn, and shape your professional journey, just in different ways. The key is to align your moves with your personal goals, industry context, and long-term vision.

Whether you climb upwards, move sideways, or combine both, the future of work rewards those who are intentional, adaptable, and committed to continuous growth. A personalised plan, supported by mentors or career coaches, can help you make confident choices and thrive in the evolving world of work.