Can cause salaries of long term employees to be lower than those of newly hired workers?

Pay compression (also referred to as wage compression or salary compression) is when employees who have been in a job for a long time makes less than new hires in the same position. Pay compression can be also be seen between managers and their direct reports.

What is lateral offer?

Unline a promotion where an employee moves up the employment ladder, a lateral move keeps the employee on the same level but changes their job responsibilities. The sideways move may afford the employee new opportunities or access to new skills.

Is 2 years at a job good?

Experts agree that you should stay at your place of employment for a minimum of two years. It’s enough time to learn new skills and build your qualifications, while short enough to show that you value growing in your career.

Is being underpaid illegal?

Make no mistake, underpayment or nonpayment of wages you have earned is a violation of the law, and you have the right to seek proper compensation. However, unscrupulous employers can be very sneaky and creative in the ways they take advantage of their employees.

Are lateral moves good?

A lateral move can actually give you more marketability in the long run. By understanding more aspects of the company as a whole and how different departments fit together, you’ll likely be better suited for management or executive positions down the road.

Is job-hopping bad?

It seems pretty safe to say job-hopping has become common. However, if you have a personal history of job-hopping, it may be damaging your employment prospects—especially if you’re unemployed for a while between jobs or are a younger or older candidate.

Can you negotiate a salary for a lateral move?

When making a lateral move either within the same company or with a different organization, you want more than just a new job – you also want to benefit financially. Negotiating a salary for a move that’s not a promotion isn’t easy because your employer may assume you’ll make a lateral move in pay as well as responsibilities.

Should I take a lower workload lateral job?

A reduced workload does not necessarily mean an “easier” job, but it can mean a job that is more focused on results. More work, same pay. Increasing your workload for an equal or lower pay rate is a distinct possibility, so be sure you vet thoroughly before accepting a lateral move versus promotion. Perception.

Why would you want to make a lateral move?

Maybe you’re being stretched beyond your limits in your current role. A lateral move can help reduce the stress of the job while allowing you to expand your skills set. A reduced workload does not necessarily mean an “easier” job, but it can mean a job that is more focused on results.

What happens when your boss calls you for a lateral position?

Instead of the promotion, however, your boss calls you in for a chat and tells you that the higher-ups are talking about you for a lateral position that just opened up, a position with the same or similar title and pay grade but in a different part of the organization. Don’t assume that a lateral move is a knock against you.