FreeThinker
FreeThinker
Stealth

Is this a good way to negotiate expected CTC?

An example scenario: Let’s say my CTC is 34 LPA + annual stock payout of 5 Lakhs. My total yearly earning potential is 39 LPA.

In the new role they don’t have a variable or stocks. Is it reasonable to ask for a 25% hike on the overall earning potential?

So the new CTC is 49 LPA.

I haven’t switched my employer in the past few years so currently is lacking the clarity on the way how negotiations are done. Kindly help by sharing the best practice.

21mo ago
SupportStaff
SupportStaff
Others21mo

Taking prev salary as base is an absolute lazy way to determine future salary. Any HR who does that has no idea how to value a person that the company needs (unfortunately 90% HR people are this way). If you are in a position of leverage, remove current CTC from the conversation and try to determine what you are worth for them. If not, then go with the flow

FreeThinker
FreeThinker
Stealth21mo

Alright. Thanks for the input. Really brought in a new perspective!

FreeThinker
FreeThinker
Stealth21mo

Actually the HR said they haven’t set a budget for the role I have applied. They wanted me to give a figure. So I thought I’ll take the approach of asking for a 25% hike over my current.

bahiwbstyavw
bahiwbstyavw
Stealth21mo

yeah that’s reasonable

FreeThinker
FreeThinker
Stealth21mo

Ok thanks!

ThickShow31
ThickShow31
Startup21mo

Never share the salary at first few rounds of interview. Almost all the HRs says some excuse on not to tell salary range like they haven't budgeted or unlimited bugdet etc.. always say, right now I can't give exact numbers I want to know more about my role and responsibilities in our org.... somewhat like that. Otherwise they will set your expectation bar very low, even if they are ready to pay higher.

FreeThinker
FreeThinker
Stealth21mo

Sure. Great info!

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