I am currently interviewing for a new position within my company that is 2 levels above my current pay grade.

I am currently interviewing for a new position within my company that is 2 levels above my current pay grade. There is an HR “policy” that limits salary increases for promotions to 10%. In order to keep from ending up (and staying) below midpoint or in the standard paycheck gap, how can I negotiate beyond the policy limits?

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16 Comments

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  1. Heather Cutler

    The answer will always be no if you don’t ask. If they can’t increase your salary more than 10% then I’d be asking for things like a one-time signing bonus, a higher incentive payment / year-end bonus or equity if you’re working for a corporation.

  2. Anonymous

    That’s an odd policy... In any case, if you’re going up two levels, I would question why you believe you deserve to be near the midpoint of the pay for the position and not the bottom. If you’re currently at the ‘right’ level based on your education/experience, letting you move up 2 levels would be highly risky for them. They might like you and be willing to take the risk, but in this case they’d pay you at the bottom of the range. (I would never accept a salary outside of the standard pay range for the position, though.) However, if you were highly experienced before you took your current job, and just took your current position to get your foot in the door, that’s another question. In this case, you can use this to negotiate. You could also apply for other positions at the same level as the potential new job and use an external offer as leverage (or maybe you’ll even find a better position!) I personally would be looking to leave your current company, though. Salary should be based on the position and your ability to do the job, not on a random 10% rule. To me, that rule seems to encourage exploitation of good employees…

  3. Lisa Marie

    That's a simple sell. 10% on a standard promotion, but this is teo levels up.

    Ask for it to be calculated on the teo steps up that it is. Be sure to use the term "this is only fair and equitable given the degree of change (two levels up).

    If they refuse to see the fairness, then you should clearly see the type of people you're working with, and make several decisons:

    1. can you trust them?

    2. should you stay/take the position?

    3. will you be happy/comfortable with just 10% if you're selected for the role

    Good luck.

  4. Anne Krook

    You should know what the pay range is for the new position and you should be placed within it if given the job. If they will not place you within it because if that new rule, the best remedy is an equivalent job offer at another company. You can then discuss then other company's offer and ask for it to be met (or, of course, leave, if you like that job better). Do not agree to a 10% raise "for now" and an adjustment to the new range to come "later" unless you get all the amounts and dates of the raise **in writing** signed by both your new boss and HR.

  5. Anonymous

    Companies only get into trouble with their current talent when implementing policies like this. I didn't see anything about two levels of promotion on the OP, but other comments refer to that, so if it REALLY is two levels of promotion, shouldn't that be worth 20%? Just sayin'. Do they really want to hire outside talent? What would they have to pay them? EDITED: I just saw how it was two pay grades up, but is that two promotion (i.e., title) levels?

  6. Rosa E Hearn

    This is not a raise but a new position. You should be treated as a new hire

  7. Anonymous

    Unfortunately that's not how it's handled at places with this sort of arbitrary policy. They do tend to pay external hires better than internal folks being promoted.

  8. Anonymous

    We have a similar policy (15% - higher has to go through central state employment office). But I've jumped multiple levels and got paid baseline (which was 40% raise). I've also hired people who were jumping two levels and argued for a specific dollar amount that's below midpoint but more than 15% and felt fair to me. Not all hiring managers are willing to put in that much effort to argue with HR, however. It also becomes a matter of equity if you are getting paid much less to do the same job as others in the role.

  9. Kristyn Barrett

    I was just promoted in my company and one, we do not have a wage increase policy because the promotion is treated as a new hire. New position, new pay scale. I did my own research on what my new position’s scale was for reference and my company’s offer fell into that range.

    If you are getting a promotion TWO levels above your current position, then this is a new hire and it requires a new salary scale review.

    Do not let them get away with grossly under paying you and loading you up with work because you will probably feel taken advantage of, resentful, burnt out, and frustrated and you will take it out on your work. As women, we are already underpaid so fight for every penny you can!

  10. Anonymous

    Most Fortune companies will cap the increases so that there is not internal compression or misalignment with others in the same team. You may not be able to negotiate and often it is a take it or leave it.

  11. Anonymous

    Your only option might be more time off or an adjustment after 6 months or something. Do not take the job at the lower salary even if the title and responsibilities are two grades higher hoping they’ll see your worth and raise you later. It almost never works and you’ll end up a bitter and resentful employee because of it. Been there, done that.

  12. Sarah Larson

    Usually, even with this requirement, they have to bring you in at the minimum for the role. In that, usually there’s a 10-20k range from minimum to maximum and regardless of the % policy, they’ll bring you up to the bare minimum to me legal requirements (California, unsure about other states/countries).

    That said, if you are the only person with your role in the company you are out of luck. The 10% sticks.

    If you want to stay, like others have said, you negotiate a spot bonus, additional benefits or vacation, perhaps a professional development certificate or degree, or perhaps even equity, etc.

    If you want more money from another organization, take the promotion and start looking. The title bump will help you find equitable compensation elsewhere.

  13. Anonymous

    This is no comment on how capable you are, but it would be extremely rare for a company to hire someone internally 2 job levels up. Most posting can flex 1 level up or down and I expect this is why you are being interviewed - you are a high performing person 2 levels below. If you are offered the job I expect it will be only 1 level up, then they can point to their policy. Hopefully I am wrong...

  14. Anonymous

    what you’re doing does not meet the definition of a “promotion” in todays business sense. A promotion is linear growth based upon performance/management recommendation. You are applying for a job, thus should be treated like a new hire in regards to compensation rate as defined by salary range for the position

  15. Orion Brown

    Focus on total compensation not salary. If the policy is no more than 10% then look to things like bonus and equity to balance the difference. Also, I’d ask them to revisit that should it come up because you aren’t being promoted level to level but hired into a new role that happens to be higher pay grade. Best of luck!! Great job in getting considered.

  16. Heather Tearney

    Hello. I recently went through this. My organization has a 10% policy for the same position - meaning, if you are keeping in the same title/role you cannot earn more then 10% of current pay. (There are very rare exceptions.) HOWEVER, if you are moving into a NEW position/title then that is not the case, the pay is not limited to the 10% increase. But the company rarely gives beyond mid-range of the new position pay range. So double check the policy - you indicate that it is a level change, therefore your title/role changes as does the responsibilities and work you will perform.

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