Authored by Jake Densley, Atlas Partners

Last week, I shared an article on career strategy, and one of the most common follow-up questions I received was about internal vs external career moves, a classic dilemma that shapes the trajectory of many careers.

It’s a choice that can feel daunting. Do you take the next step within your current organisation, leveraging the trust and knowledge you’ve built? Or do you leap into a new environment, starting fresh with the chance to rebrand yourself and gain new perspectives?

Here’s a closer look at the pros and cons of each approach, along with what the research says about your earning potential.

Internal moves: The familiar path

The pros:

  • Speed and trust: You already know the culture, systems, and people, so you can ramp up quickly. Your leaders and peers also know what you bring to the table, which can make it easier to secure buy-in and support.
  • Deepening relationships: Staying within your current company allows you to build stronger networks and influence across departments. You also get the chance to demonstrate loyalty, which can be a powerful factor for future opportunities.
  • Career continuity: An internal move can help you deepen your expertise in a particular business or sector, making you even more valuable in the long term.

The cons: 

  • Limited fresh perspective: Staying put may reduce the chance to learn new ways of working or expand your knowledge of different industries.
  • Legacy baggage: Old perceptions of you can linger, making it harder to reposition yourself for a fresh start if needed.
  • Slower salary growth: Studies show that internal promotions typically lead to an average salary increase of just 5%, compared to external moves which can deliver nearly 18–20% higher pay.

A real-world example:

A long-term client of mine was working at an ASX-listed energy provider. She had strong technical reporting skills but had not yet gained the commercial experience she wanted to one day become a CFO. Rather than leaving the organisation, she was able to secure an internal transfer to the commercial team. Her deep knowledge of the business and the strong stakeholder relationships she had built overcame her lack of experience in that area. This kind of move can be much easier to achieve internally, where your track record and relationships can help you pivot into new areas and build broader capability.

External moves: A fresh start

The pros:

  • Rebranding: A new company can give you a clean slate and a chance to redefine how others see you. You can shed old labels and highlight your unique value in a new context.
  • Exposure to new ideas: Moving externally means experiencing new leadership styles, cultures, and processes, which can make you more adaptable and innovative.
  • Expanding your network: You’ll meet new colleagues, clients, and partners, broadening your connections and future opportunities.
  • Higher earning potential: Those same studies consistently found that employees who change jobs receive a salary increase of nearly 18–20%, making it an attractive option if you feel your compensation has stalled.

The cons:

  • Onboarding challenges: Learning a new culture and proving yourself from scratch can be a big adjustment, especially in senior roles.
  • Cultural misalignment risk: If the company’s values or ways of working don’t align with yours, it can be a rocky start. Try and speak to a trusted recruiter to get some good intel on the business to mitigate this risk. Glass door can also be useful.
  • Higher perceived risk: Hiring managers might see an external move as more risky than promoting internally, so you need to prove your fit quickly.

A real-world example:

Atlas Partners recently assisted a candidate who made a significant external move. She was a Director at a top-tier accounting firm and felt that her learning curve had plateaued. We helped her secure a role at a global technology company, where she was able to broaden her skillset and accelerate her career. The external move not only came with a substantial salary increase, but also exposed her to an entirely new industry and a faster-paced, innovation-driven culture. She had to invest in building new relationships and proving herself quickly, but the experience ultimately positioned her to achieve her long term career goals.

So, what’s the best move?

The truth is, there’s no one-size-fits-all answer. The best move depends on your goals, your growth stage, and what you value most right now.

If you’re looking for fresh challenges, rapid learning, and a salary bump, an external move could be the best way to stretch your skills and boost your compensation.

If you’re focused on deepening your impact and building long-term credibility, an internal move could be the better choice, especially if your current company has opportunities for growth.

Both paths can be powerful. What matters is being intentional, knowing why you’re making the move, what you hope to gain, and how it fits into your long-term career goals.

About Jake Densley

Jake Densley is a Director at Atlas Partners, a specialist recruitment firm based in Melbourne. He holds an MBA from Melbourne Business School and, in 2022, conducted research into executive career strategy at London Business School. This article combines academic insight with lessons learned from thousands of interviews across a decade in executive recruitment.