Internal Employee Salary Negotiations: Right Way/Wrong Way

As you reach for the next rung on the corporate ladder you’ll have a better grip by knowing how to effectively negotiate your internal salary.

The wrong way: If you are applying for a position internally do not ask the person that is already performing the job you want to have how much they are being paid. Somehow word gets around when people begin discussing their salaries and the end result is never pretty. Don’t say that you need the extra income because your kids would like an in-ground swimming pool this year, or you are behind in your mortgage or any other personal dramatic scenarios you can lay before the unsuspecting recipient. No crying, yelling, pounding of desks, slamming of phones, or eye-daggers should be thrown during the negotiation process.

The right way:Do your own research and do not divulge the information to your co-workers. You will want to research whether the role you are going after offers a bonus or commission. Most positions are paid on either a salaried (exempt level) or hourly (non-exempt level) basis. Great web sites to check out that will reveal what salary range should be offered for your role are:
• GlassDoor.com
• Salary.com
• Indeed.com – see top left corner of page and select ‘salaries’ link
• Payscale.com
• SalaryExpert.com
Be calm, courteous, rational and firm with your well-thought-out reasons for why you should receive your requested salary.

Look at the job description sometimes it will tell you what the pay range is. Also, sometimes the pay-grade will be listed on the job description. If you are an internal candidate then you can gauge the salary range via the pay-grade. If the pay-grade is listed at a 14 and your current pay-grade is 13, then you will know that the position will pay more than your current role.

If you receive a phone interview or introductory call from a recruiter or hiring manager it is appropriate to ask what is the pay being offered for the role; be sure to save this question for the end of the conversation. Even if you learn that the pay is less than what you are currently earning you may want to consider other factors before you decide whether or not to move forward with the role.

Factors to consider along with the salary:

Management – Will you like your new management team?
Co-Workers – Will you like your new co-workers? Will you fit in with the group?
Training/Education – Will training or educational courses be offered for your department?
New Challenges – Will you be learning anything new at your new job?
Career Growth – Will there be room for you to move upwards within your new department/company?
Benefits – Will this new role come with a better set of benefits such as management bonus, stock options, more personal time off, telecommuting options, etc…?
Hours – Will your new job require you to work more than 50 hours a week? Your work-life balance is sure to suffer if you are consistently working up to/or over 50 hours a week.
Shift – Will you be working the shift that will suite your lifestyle?
Reputation – Does your new department have a good reputation? Working for a prestigious or reputable department will enhance your ability to further climb the corporate ladder.

Exempt Level Status – Many people have difficulty going from non-exempt (hourly paid where you are eligible to receive overtime pay) to exempt (salaried paid position that does not offer overtime pay) status. When employees have come to rely on their overtime pay they think that they will actually take a pay-cut if they accept a salaried position. Initially you might receive less pay but in the long run it will prove to be a wise move. Overtime hours are not a guarantee. When preparing your offer, the decision makers will more than likely factor in your overtime pay (this is true primarily for internal candidates). The move from non-exempt to exempt is necessary in order to move up within your career. If you want to move upwards you will have to make this move sometime, you might as well do it when the opportunity is presented to you.

When to walk away: If you learn that the salary is considerably lower than what you are earning and there will not be much room for advancement, or there will not be any new challenges to learn something new, then you may want to remove yourself from consideration. If your work-life balance will be severely impacted for the negative you should reconsider the job opportunity.

Gather your thoughts, do your research and you won’t slip up the next time you are offered an internal job offer; happy corporate climbing!