A Business Owner’s Perspective on Fair Salary Negotiation

As the owner of my own company, I have a firm policy during hiring: I never ask candidates about their previous salaries. Instead, I inquire about their salary expectations to see if these align with our budget. This approach helps us focus on what’s important—finding the right fit for our team without being biased by their past compensation.

When it comes to my personal experiences with job opportunities, I maintain transparency. I currently draw a modest salary of INR 30,000 from my business. Occasionally, I explore the market to assess my value in the industry. During these explorations, revealing my current salary often leads to disbelief, given my five years of experience. This disbelief intensifies when I share my salary expectations of INR 36 LPA. Most potential employers are shocked, and typically, they only offer a 30% raise from my last salary. I respectfully decline these offers as they don’t meet my expectations.

The Status Quo in IT Salary Negotiations

In the IT industry, the norm is to base salary offers on a candidate’s previous earnings. Companies ask about a candidate’s current or past salary and use this data to formulate their offer. The rationale is straightforward: it provides a benchmark for negotiation.

The Implications of Current Practices

This common practice, however, has significant drawbacks. It perpetuates wage gaps since individuals who were underpaid previously are likely to continue being underpaid. This issue disproportionately affects groups historically subjected to wage disparities, like women and minorities.

Advocating for Alternatives

I believe that a person’s salary should reflect the value they bring to a company, not their earnings history. This means assessing a candidate’s skills, experience, and potential impact rather than their previous income. While some companies are moving towards this more equitable approach, it’s far from widespread.


Basing salary offers on previous earnings is ingrained in the IT industry, but it’s a practice fraught with issues. As we look towards the future, it’s crucial to consider more just and effective methods for determining salaries, methods that truly reflect a person’s worth and contributions. As a business owner committed to ethical practices, I advocate for these changes, hoping more companies will recognize their benefits and adopt similar approaches.

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Skilled in Microsoft Technologies, Bot Framework, Test Automation and Core Java. Also, have strong knowledge of the Hospitality and Tourism industry. Interested in RPA, Cognitive Services, and Chatbot Technology.