To Vasant Nair,
Thank you for your appreciation.
To Sridharafep,
When an organization does not have a scaling system (in C&B, we call this Grade and Salary Structure. This is achieved by conducting a Job Evaluation and using Market Salary Data to formulate). When such a system is not in place, the 20%-30% onto previous drawn salary becomes a good rule of thumb when hiring a job of similar scope and accountability as the additional % is to recognize the "hardship" in starting with a new company, new culture, new system and new colleagues. This is a valid and common salary administration practice.
When an organization does have a proper grade and salary structure, it is imperative for HR to hire, retain, promote, and transfer within system guidelines in order to maintain internal & external equities. HR cannot offer as they pleased.
Another valid and common practice is to hire just below the minimum of the salary range. But this practice has to go hand in hand with your probation policy. So, if you are hired below the minimum of the salary range, given a 6-month probation, once your performance meets expectations, you will get your confirmation with a salary adjustment which moves you to the minimum range. If you remain in the same organization performing the same scope of job, you will progress through this range in the form of annual increment.
The speed at which you progress through this range (minimum to maximum) depends very much on your performance. However, the value of this range is not constant throughout your career because of market forces, etc. HR needs to update these ranges every year to remain competitive by accessing market salary surveys.
To Tariq,
Quote "I have seen guys getting much much more than what they deserve compared to what they should get."
Other than a proper grade and salary structure, for an organization to decide what to pay also depends very much on its Pay Philosophy (where it wants to be in the marketplace); which industry the company is in (Financial vs Manufacturing, i.e. an IT job will be paid more in the Financial sector vs the same IT job in the Manufacturing section); demand and supply of job and skill sets (high demand with scarce supply would usually mean the company has to pay a premium to get candidates) and which phase the organization is in the business cycle (for a new startup, the organization may have to pay a premium for key jobs to kick start the business or a life example - the dot.com era where low pay and huge stock options are provided).
If an organization has decided to be leading the market by paying at market Q3, the salary ranges will be formulated based on Q3 of the market data. So, if some guys who are doing the same scope of work and yet getting much more, it could be because of the above circumstances.
I do agree with your suggestion of "Anyways, from where I see, what you can do is keep your current job and take the offer letter to your HR and see if you can negotiate with them. They might not give you the same hike but you might get a decent raise." This is especially important if this is a key job or a star performer. This should possibly be the 1st option. However, this should not be repeated too often as it becomes a threat to the organization and your loyalty is questioned, even if you are a star performer. The organization may decide to let you go one day.
To B. Dakshina Murty & Mdateeq,
I totally agree with your comments that such posts should totally disappear from this site as I was pretty shocked myself to read it when it was first posted. But I decided to put in my 2 cents worth of advice because I guessed once in a while a little nudge goes a long way.
Regards,
Autumn Jane