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Internal Promotion Vs External Hire OTE Imbalance

Hey All,


Do you see an imbalance of OTE for your externally hired AE's vs. internally promoted AE's? What are you seeing? How does your company combat this pay equity gap if it exists?


Thanks - FatTexx20

5
salesnerd
WR Officer
+16
Head of Growth
Ugh, this sucks. I'm a huge proponent of standardized compensation based on role, so even hearing this question makes me sad. 

If internal promotions are being paid LESS, then it's likely because they joined the organization as an SDR or junior rep and worked their way up, so the org doesn't see them as qualified. If they're being paid MORE (unlikely) it's because they have the industry experience and the org thinks that makes them more qualified.

Everyone who has the same quota should have the same comp plan. 
Da
DaveFromCollege
Notorious Answer
+7
Account Executive
There's always that gap, quite simply because the company usually banks on you being happy/complacent with your job and don't want to learn an entirely new system elsewhere.

It's a shame that that's the case, but most companies won't bother matching your pay with what is out there unless you take action into your own hands.
CuriousFox
WR Officer
+11
Senior Account Executive
You are exactly right. 
To
Toby
Old School Bravo
Commercial Account Executive
150k internal vs. 200-225k OTE pay discrepancy at my company for the same quota and role. 

 Unfortunately, you might have to threaten to leave for them to increase your pay, but it will still not be close to the external hire pay range.
Jackywaky
Arsonist
+9
Master of Disaster
I can relate big time with @salesnerd - standardized compensation based on the role is critical. When you're hiring externally because you don't trust your internal talent is a red flag. 
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