Why is it difficult to move up the ladder when you remain with the same company for several years?

Yes, this is a good question and it is the status quo in many companies unfortunately.  From my observations, research, and conversations with colleagues I can offer the following…  First, I believe that many people are not comfortable with asking for a pay increase. It may be easier for someone to take a higher paid position at another company than to negotiate for a raise within the same company.  Aside from this, I have observed that people may negotiate for a raise once they have an offer from a competing company.  I think this strategy has a double-edged sword… On the one hand, it does prove to your current employer that you have higher value. On the other hand, it can cause ill-will on your employer’s part who may initially raise your salary, but then weed you out of the company in time…  Asking for a pay increase is a delicate dance which requires a balance of great finesse, timing and your own personal style on approach.  I recommend verbalizing a summary of your accomplishments and ideas on how much more you hope to contribute to a company’s success.