Latest / The Internal Move Podcast with Fexingo: Lateral Roles, Internal Transfers, and Staying at Your Company / How an Internal Transfer Can Help You Negotiate a Raise
Transcript
- Lucas: So we talk a lot on this show about the logistics and the politics of an internal transfer — how to make the move happen, how to navigate your current boss, how to build influence in a new team. But one thing we haven't really drilled into is the financial side. Luna: You mean actually getting paid more? Because I think most people assume a lateral move means flat comp, maybe a small bump if you're lucky. Lucas: Exactly. And that assumption is exactly what keeps people from negotiating. But here's the thing — an internal transfer is often one of the best moments to ask for a raise, even if the new role is technically at the same level. The key is understanding the budget psychology. Luna: Okay, I'm intrigued. What's the psychology? Lucas: When you're an external candidate, the hiring manager has a budget range approved for that role. They expect to negotiate. They're comparing you against other candidates who are also negotiating. But when you're an internal transfer, the manager often sees you as a known quantity — lower risk, faster ramp-up. That gives you leverage. Luna: Lower risk should mean they're willing to pay a premium for that certainty, right? Lucas: Exactly. There's a 2025 study from Payscale that looked at compensation changes for internal movers versus external hires. Internal movers who negotiated saw an average increase of about 8 percent. External hires who negotiated got around 15 percent. So internal movers do get less, on average. But here's the catch — only about 30 percent of internal movers actually negotiate at all. Luna: So most people leave money on the table because they assume it's not possible. Lucas: Right. And that 8 percent is an average — meaning some people get zero, some get 12 or 15. The ones who prepare and make a clear case can absolutely land in the higher range. The question is how. Luna: So what does that preparation look like in practice? Lucas: First, you need to shift the conversation away from tenure and toward impact. A lot of people walk in and say, 'I've been here four years, I deserve more.' That's weak. Instead, you want to say, 'In my current role, I led X project that drove Y in revenue, and I've built institutional knowledge that will let me hit the ground running in this new team.' That's a value argument. Luna: So it's about framing yourself as an asset, not a loyal soldier. Lucas: Exactly. Second, you need a market reference. Look up comparable roles at other companies — not just salary bands, but actual job postings with ranges. If the new role at your company is a senior analyst position, find three postings at similar companies showing a range of, say, $85,000 to $100,000. Then you can say, 'Based on market data, the midpoint for this role is around $92,000. I'd like to be at $90,000.' Luna: And that's easier to justify than asking for an arbitrary number. Lucas: Exactly. The third piece is timing. Ideally, you negotiate before you formally accept the transfer. Once you've already moved and started, your leverage drops significantly. The new manager has already budgeted for you at a certain level, and changing it after the fact is a bureaucratic headache. Luna: That makes sense. But what about the current manager? Don't they have a say in your comp, or does it all shift to the new manager? Lucas: Great question. In most companies, compensation for internal transfers is determined by the new manager and HR, not the old one. The old manager might be consulted, but the new team's budget is what matters. So you're negotiating with the person who already wants you on their team. That's a good position to be in. Luna: I can see how that could be awkward though. You don't want to seem greedy or like you're only moving for money. Lucas: That's a real concern. And the way to handle it is to tie the ask to the role's market value, not to your personal needs. You're not saying 'I need more money.' You're saying 'This role is valued at this range externally, and I want to be compensated fairly for the value I'll bring.' It's professional, not personal. Luna: And if they say no? What then? Lucas: Then you have a decision to make. If the transfer still advances your career long-term — new skills, new network, more visibility — it might still be worth doing. But you can also ask for other things: a signing bonus, a guaranteed review in six months, extra vacation time, or a commitment to a title upgrade after a year. Compensation isn't just salary. Luna: Right, total comp. I've also seen people negotiate for professional development budgets or conference attendance. Lucas: Exactly. And one more thing — don't forget about equity if your company offers it. An internal transfer can be a good time to ask for a refresh grant, especially if you're moving into a more senior role. Luna: So the bottom line is: internal transfer doesn't have to mean flat comp, but you have to ask. And you have to ask the right way. Lucas: Right. And if today's episode helped you think through that conversation a little more clearly, honestly, that's the whole point of why we do this show. The way The Internal Move stays ad-free is through listener support. So if you found this useful, you can help keep it going at buy me a coffee dot com slash fexingo. Luna: Yeah, and we really appreciate everyone who's chipped in. It makes a difference. Lucas: Alright, back to the tactical side. One last piece I want to mention — the script. When you sit down to negotiate, have a specific number in mind, but also have a rationale that ties directly to the new role. Something like: 'Based on my research, the market range for this position is $88,000 to $95,000. Given my experience in X and Y, I believe $92,000 is a fair starting point.' Then stop talking. Let them respond. Luna: Silence is powerful in negotiations. Don't fill the space. Lucas: Exactly. And if they come back lower, you can ask what it would take to get to your number — maybe a performance milestone or a six-month check-in. The key is to keep the conversation collaborative, not confrontational. Luna: I think a lot of listeners will be surprised that this is even an option. I know I was when I first learned about it. Lucas: Yeah, it's one of those hidden career hacks. And in a market like mid-2026, where promotions have flattened at a lot of companies, internal transfers with a comp conversation might be one of the best ways to grow your income without leaving the company. Luna: That's a great closing thought. If you're thinking about an internal move, don't just think about the role — think about the whole package. Lucas: And bring data. Bring market data, bring your impact data, and bring a collaborative mindset. That's the formula.