Your experience, reputation, and track record at your current firm have built up over time. As you climb the ranks, this often translates to better perks, higher pay, and increased flexibility. However, it can become a roadblock when you're looking to transition into a new role elsewhere due a prospective employer’s internal equity structure.
If you're considering exploring new challenges, you'll quickly realize that what you've earned in terms compensation doesn't always transfer smoothly to a new company. The benefits package you've become accustomed to, such as generous PTO, unique allowances, or bonuses tied to your tenure, might not align with the internal equity of your next potential employer. Matching what you currently have could disrupt their internal equity structure, making it challenging to negotiate for comparable benefits. It can be impossible to match salaries of new staff if they’re paid significantly more than current employees, and if they were to match it, could cost millions of dollars raising everyone else’s salaries depending on the level and significance.
So, how do you ensure that making a move is right for you? Remember that you're not being compensated for loyalty to your current employer when negotiating. You're negotiating based on the value of your experience, results, and the immediate impact you can deliver. Think of it this way: your current firm rewards you because they know what you bring to the table. A new firm? They're taking a risk, which often comes with a price. Training and onboarding you is an expense they must factor in, which can work against you if you're not strategic in your negotiations.
Focus on translating your internal equity into a marketable value proposition to maximize your leverage. Be clear on what you bring that sets you apart, whether that's niche expertise, proven leadership, or a track record of driving results. If the new firm can't match your current benefits, it's essential to be flexible and consider other perks like signing bonuses, equity stakes, or flexible working arrangements. And if that's the only reason you're moving role, is the grass greener on the other side?
The bottom line is that your experience and skills is yours to leverage. While it may not always carry over in a one-to-one match, it can be a powerful bargaining chip if you know how to frame it effectively. So, treat your job search as a strategic negotiation, ensuring you're compensated not for your tenure but for the full breadth of value you bring.
Negotiations often become muddled when a candidate and a hiring manager are talking about two different things. You may well be qualified and experienced and quite rightly earning a fair wage, but if it does not fit inside the internal equity structure of a new business, it’s highly unlikely you will be hired.
If you’d like advice around your next career, please get in touch with us here at Harba, we’d be happy to help.
