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Do other companies give you a higher base salary coming from the outside versus being promoted into the role? Just curious.

I've personally been on both end of this, I'm curious if this is a common practice. It seems as though getting promoted into a position you always get less base comp than you outside hired counterpart.


P.S. - I know I have a douchey username, take it easy, I'm actually a chill bro, I thought it would be funny to have lol.

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LordBusiness
Politicker
+7
Chief Revenue Officer
It's pretty common, similar to sports and over paying for "free agents" vs. building out the "farm system" or "through the draft".ย  Free agents get paid more because its easier (generally) to ramp and train and onboard someone with experience (Free agent) then it is to build out the infrastructure to grow from within.ย ย 
CuriousFox
WR Officer
+11
Needer of Life Alert
Unfortunately yes. Companies tend to rely on employees fear of change and sense of job security.ย 
DadFather
Politicker
+5
Enterprise Account Executive
I think it all comes down to who has the leverage. Are you a top performer else where and you get pulled into a new company for more $? Or are you just looking for a new role and the new company knows you just want out of your current role?ย 

Internal promotions are tough as they will likely start you on the base/low side for that new role as it is deemed a promotion already.ย 

would love to hear others thoughts on this.
slaydie
Politicker
+5
Account Executive
From what I've seen companies definitely pay less for promotions compared to hiring externally.

Especially if its an SDR to AE type of promotion. Take it as an opportunity to prove yourself and achieve your numbers for 12 months and then go to leadership and negotiate. You will have more of a leg to stand on as opposed to when you start the new role.
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