Hi Neil,
Not sure if there is a more common term, but we do use “in role development plans”, which may (or may not) result in a pay rise when objectives/milestones are achieved. This keeps people motivated, knowing they are working towards something, but it doesn’t have to be a promotion to a more senior role.
I agree, sometimes people can be too focused on “vertical” career progression up the ladder, rather than expanding their skills/remit “horizontally”.
Kind Regards, Elinor