Lateral role changes
The only way is not always up when it comes to realising your career goals in financial services. The answer to your needs could be a lateral role change.
With a large variety of organisation types, a diverse range of roles on offer and the complex structure of many financial services institutions, the industry offers many exciting opportunities for lateral career moves.
What is a lateral role change?
A lateral role change is typically a job change at the same or similar level that brings different responsibilities. This may be within the same organisation, or in a new organisation. Often you will retain a similar job title. Keeping the same job title (or job grade in some organisations) means that your level of responsibility and salary level are likely to be similar in the new position.
Moving laterally within an organisation can offer a variety of really positive benefits. Lateral moves, if planned correctly, can lead to very rewarding career experiences.
Why take a lateral role change?
There are many reasons why someone may want to consider a lateral role change during their career.
Long-term career planning
Developing depth and breadth in your skills and experience will make you an attractive prospect for promotion and employment prospects – to both your current employer, and also external hiring organisations. In fact, some organisations actively encourage lateral career moves to broaden skills and experience across their workforce.
An alternative path to promotion
A lateral career step allows you to expand your skills and experience, while avoiding the pressure and expectation connected to a promotion. Your manager may be more inclined to "give you a go" in a lateral move and then support future promotion once you have proven yourself.
Keep fresh within your organisation
If you are keen to stay with your employer, however opportunities for promotion are not currently available, a lateral career move can keep you fresh while expanding your network, skills and experience.
Learn from new people
A lateral career move offers the opportunity to be managed and mentored by someone new. This offers a new perspective on your own personal development, as well as how you manage upwards, but within the comfort of a familiar working environment.
Job security
Increase your job security by expanding your corporate knowledge and core competencies across other areas of the business. This can make you a more attractive resource, especially in times of downsizing.
A new start, in a familiar place
A lateral career move can be used to escape a manager or colleague that you find difficult to work with. Obviously, use this as a last resort after all other avenues have been explored. By nature, all organisations experience office politics of some sort, and very few managers like to see employees leave or come to their team as a result of unresolved issues in another part of the organisation.
How do I undertake a lateral role change?
1. Set your goals
Firstly, consider what it is that you want to achieve. What career and personal goals do you hope to realise from a lateral move. How do you want to grow, and will a lateral move help you to achieve those goals?
2. Size up your skills and competencies
Consider your core skills and competencies, and ask if they can be transferred to another business area of interest. For example, the relationship management skills and analytical ability of a business relationship banker could potentially be applied to some roles within funds management, financial planning and other areas in the industry.
3. Establish your boundaries
Consider how far you want to go and how challenged you want to be. You might be satisfied by just moving into a different sector within your own company. Or you might have your eye on a totally new organisation. If you have a career mentor, talk to them about your options.
4. Protect key relationships
Once an opportunity has been identified, regardless of whether you want to move vertically, laterally, or externally, you should present clear reasons for the move to your manager to avoid any misunderstandings. Don't let your current manager find out from somebody else that you're looking to move.
If there is agreement and support for a lateral move, create a smooth transition by:
- Defining and agreeing on a reasonable period of notice.
- Offering to help interview and train a replacement, and be open to the possibility of consulting during a transition period.
- Offering to document current projects and agreements and then have colleagues review those documents to ensure nothing has been left out.
- Documenting commitments made to direct reports and get assurances from the appropriate people that such promises will be carried out.
- Understanding how your manager will announce the transition and stand by the plan. It may be less disruptive for a manager to formally announce the transition than to have it communicated as office gossip.
- After your meeting, avoid any misunderstanding by writing a letter to your manager that outlines the conversation and important points that have been agreed upon.
A few tips to avoid any potholes
Before your take a lateral career move, consider the following potential issues.
Be aware of misconceptions
Some company cultures or individual managers may consider that lateral career movers can’t be promoted or are not interested in promotion. While these attitudes are changing, you should consider this as a potential issue and, if required manage these people’s perceptions.
The following link may be of assistance by detailing some of the working conditions that some of the larger financial services organisations provide to their employees.
Look before you leap
Your lateral move may not take you any closer to achieving your longer term career goals, so make sure you do your homework and map out how the potential move aligns with where you want to go.
Manage your salary expectations
Your salary may not change. While a promotion carries with it more remuneration and perhaps other benefits, a lateral move usually offers minimal financial incentives. In some cases the salary could even be less.
Be prepared to step outside your comfort zone
The difficulties encountered with a lateral career move can be similar to those experienced when changing jobs. You will be learning new things and possibly experiencing the usual insecurities associated with a new job, manager, department or organisation.
Stay positive
Maintain a positive attitude to your move and have realistic expectations of what you should achieve from the move.
In summary ...
Moving up the corporate ladder may be an attractive career option and a recognised and rewarding sign of success. However, as organisations have downsized and adopted flatter structures, there are now fewer rungs in the corporate ladder available to climb. For employees, this can lengthen the time between promotions, and means that there are many more takers than positions available.
Many organisations have recognised the benefits of creative and ‘lateral’ approaches to career moves, and are now promoting and adopting these as part of their human resource strategies. Similarly, lateral career moves are becoming an increasingly popular approach to expand a person’s career horizons.
As with any career move, make sure you do your research. A well informed decision will benefit your short and long term goals.