Why do Indian companies judge offers based on current CTC instead of talent?
Suppose there are 2 Big Data Engineers with 5 YOE. Both have similar skills. Both clear all interview rounds for the same role.
Candidate A current CTC: 18 LPA
Candidate B current CTC: 11 LPA
Company gives Candidate A an offer of 25 LPA (~40% hike), but Candidate B is told:
“Policy allows only 40% hike, so max we can give is around 16 LPA.”
What I don’t understand is:
- If both cleared the same interview,
- both are considered capable for the same role,
- and company already has budget for 25 LPA,
then why is Candidate B valued lower only because his previous company underpaid him?
Isn’t compensation supposed to depend on market value and talent instead of salary history?
This feels like companies use current CTC as a way to keep salaries suppressed rather than paying based on actual capability.
Also, how do people negotiate in such situations?
Would genuinely like to hear opinions from everyone.