In a compelling example of strategic salary negotiation, a job candidate earning ₹5 lakh per annum rejected an offer of ₹7.5 lakh, despite it representing a significant 50% increase. His decision, driven by a belief that the offer did not reflect his true market value, ultimately led to a staggering ₹14 lakh package from another company.
The Initial Offer: A 50% Hike That Wasn't Enough
The incident, highlighted by Delhi-based co-founder Kanika Jain on social media, underscores a critical issue in current recruitment practices: the over-reliance on a candidate's previous salary as the primary benchmark for new compensation. The candidate, with four years of experience, was offered ₹7.5 lakh based on his existing ₹5 lakh salary.
While a 50% jump might seem attractive on paper, the candidate questioned its fairness. He pointed out that the same company was reportedly offering around ₹12 lakh for similar roles to other applicants. The recruiter, however, insisted that the ₹7.5 lakh package was non-negotiable and aligned with market standards, leaving no room for further discussion.
Walking Away for the Right Opportunity
Rather than settling, the candidate chose a bold path: he politely declined the offer. He made it clear that he would not consider anything below ₹10 lakh per annum, confident in his skills and experience. This firm stance meant continuing his job search, a decision that required patience and conviction.
Months later, his perseverance paid off. Another organization, evaluating him solely on his capabilities and experience rather than his salary history, extended an offer of ₹14 lakh per annum. This new offer was more than double the initial ₹7.5 lakh proposal and nearly three times his original salary.
Rethinking Salary-Based Hiring
Kanika Jain used this experience to advocate for a change in how recruiters approach compensation. She argued that a candidate's previous salary does not always accurately reflect their ability or potential. Various factors, such as company policies, market conditions, geographic location, or the type of employer, can lead to professionals being underpaid.
"Stop underpaying candidates simply because their previous salary was lower," Jain urged recruiters. She emphasized that relying too heavily on past compensation can lead companies to miss out on highly skilled individuals who are simply seeking fair market value for their talent.
This case serves as a powerful reminder for both job seekers to understand their worth and for employers to assess candidates based on skill and experience, not just their pay history, to secure top talent.