Latest / The Internal Move Podcast with Fexingo: Lateral Roles, Internal Transfers, and Staying at Your Company / How an Internal Transfer Can Boost Your Chances of a Raise
Transcript
- Lucas: So you've been at the same company for three years, you're good at your job, and you're thinking about moving to a different team. You've heard that internal moves can boost your skills and your network, but what about your paycheck? Luna: That's the question, right? Does staying internal actually get you more money, or do you have to leave to get a real raise? Lucas: Exactly. And the short answer is: it can, but only if you understand how pay bands work and you're willing to negotiate before you accept. I've got a great example that illustrates this perfectly. Lucas: A friend of mine, let's call her Maya, was a product analyst at a regional office of a big retail chain. She was solid, but her salary had barely moved in two years. Her manager loved her, but there was no room in the budget. When a similar role opened up at headquarters, she applied, got it, and then did something smart: she asked about the pay band before accepting. Luna: Did she get a bump? Lucas: She got a 12 percent increase, because the headquarters band topped out higher than her regional band. She didn't even have to fight for it, just asked the right question. Luna: So the band itself was the raise. But not every department has that kind of gap. Lucas: Right. And that's why you need to do your homework. The first thing is to understand your current band and the band of the role you're considering. Many companies list them internally, or you can ask HR directly. If the new band's midpoint is higher, that's your leverage. Luna: But what if the band isn't posted? How do you find out? Lucas: You can ask the hiring manager in a casual way: 'Can you tell me where this role typically sits in the pay range?' Or you can check with a friendly HR person. It's not a secret, it's just not always advertised. And if you're moving to a higher-cost location, that's another reason the band might be higher. Luna: That makes sense. But what about the 'lateral' part? If the title is the same, won't they just keep your current salary? Lucas: That's the trap. A lot of people assume that, so they don't even ask. But in many companies, the transfer process doesn't automatically adjust your pay. You have to make the case. The hiring manager might have budget for a slight increase, but they won't offer it unless you bring it up. Lucas: The key is to frame it as a value proposition. You're not asking for a handout, you're saying: 'I bring X, Y, Z from my current role, and I'll need to ramp up on A and B. Based on the market rate for this role, I'd like to land at this number.' Luna: So it's a mini negotiation, not just a transfer form. Lucas: Exactly. And you have more power than you think, because the company already knows you, they've invested in you, and they don't want to lose you to an outside hire. That's a negotiation chip you don't have when you're coming in cold. Luna: You also mentioned timing. When's the best time to make this move for the biggest bump? Lucas: If you can, align your transfer with the company's annual review cycle. That's when budgets are set and managers have more flexibility. If you move right before that, you might get a raise plus a review bump in the same year. If you move right after, you could be waiting twelve months for your next adjustment. Luna: But wouldn't that delay your start? I mean, you don't want to hold up the team. Lucas: True, but it's worth exploring. Sometimes you can negotiate a start date that's a month out, just to get you past the cycle. And if that's not possible, you can always ask for a midpoint review at your six-month mark, so you don't miss out entirely. Lucas: And hey, if today's episode helped you think through any part of this, that's exactly what we want. These shows stay ad-free because listeners like you support us directly. If you found value here, you can buy us a coffee at buy me a coffee dot com slash fexingo. It's a simple way to keep this going. Luna: Yeah, it really does make a difference. And we're back to that salary question in a second. Lucas: So, back to the mechanics. Once you have the band information, the next step is to gather data. Not just on what you're paid now, but on what the new role typically pays in the market. Sites like Glassdoor or LinkedIn Salary can give you a range. And if you know anyone who's done a similar move, ask them what they got. Luna: That's a good tip. But what if the hiring manager says there's no room? They might say the budget is fixed. Lucas: Then you have a few options. You can ask for a one-time retention bonus, or a sign-on bonus to make up the difference. Or you can ask for a guaranteed review at three months, with a specific target. The point is to get something in writing so you're not just taking their word for it. Luna: And what about the risk? If you push too hard, could they rescind the offer? Lucas: That's rare, especially internally. The worst they can say is no. But you need to be smart about it. You don't want to be aggressive, just confident and collaborative. A good approach is: 'I'm excited about this role, and I think my experience can help the team. I'd like to discuss the salary to make sure it's fair.' Luna: Fair is a good word. It takes the emotion out of it. Lucas: Exactly. And one more thing: don't forget to factor in the long-term. A move might not give you a huge bump today, but if it puts you on a higher career track, the earnings over the next five years could be much larger. So think about the trajectory, not just the immediate number. Luna: So what would you say is the single biggest mistake people make when they transfer internally? Lucas: Not asking. They just accept whatever salary the system spits out, thinking that's the only option. But in many cases, there's flexibility. The other big mistake is not understanding the band structure, so they don't know what they're leaving on the table. Luna: And Maya, your friend, did she get any pushback? Lucas: A little. Her new manager said the system wouldn't allow more than a 10 percent bump. But she pushed back, showed the market data, and they found a way to get her the 12 percent. That extra two percent is worth about a thousand dollars a year, so it was worth the uncomfortable conversation. Luna: A thousand dollars is a thousand dollars. Good for her. Lucas: And one more thing: if you're moving to a different function, you might be able to argue that your unique combination of skills is worth more. For example, if you're going from finance to a product role, you bring a financial lens that most product people don't have. That's a premium skill. Luna: So it's not just about the band, it's about how you position yourself within it. Lucas: Precisely. And remember, the goal isn't to squeeze every dollar, it's to get a fair deal that reflects your value. That's what a good negotiation looks like. Luna: Alright, so if someone's listening and they're thinking about an internal move, what's the first concrete step they should take this week? Lucas: Find out the pay band for your current role and the one you're eyeing. If you can't find it, send a polite email to HR or ask a trusted peer. That one piece of information will tell you if there's headroom. Without it, you're negotiating blind. Luna: That's a solid first step. And if the band is the same as your current one, is it still worth moving? Lucas: Absolutely, because the long-term opportunity might be better. But you'll know that going in, and you can decide if the non-monetary benefits are worth it. Just don't expect a raise that isn't there. Luna: So it's about being informed, not just optimistic. Lucas: Exactly. And when you have that data, you can make a smart decision, whether that's pushing for a higher number or simply taking the move for the growth. That's the key to making an internal transfer work for you.