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Salary negotiations, where a candidate's expectations meet a company's budget, are often seen as a complex part of the interview process.
However, Arjun V, the CEO of Bengaluru-based Zoko, recently shared on LinkedIn how his company has completely removed this step from their hiring procedures.
Arjun said that after hiring more than 18 members for his team, he has found the secret to retaining world-class talent.
"We don't negotiate salaries. We literally pay what they ask for," Arjun said. "Then, we do revisions once a year," he added.
Arjun explained the reasons behind this approach: “The reason is simple: it eliminates back-and-forth negotiations and builds immediate trust.”
He believes this method ensures candidates have no reason not to perform their absolute best since they are getting paid what they want.
He added that this policy also avoids distracting salary discussions that were not planned, allowing the company to focus more on finding the right fit for the role.
Netizens reaction
Since being shared, Arjun's post has received several reactions, and many users took to the comment section to share their thoughts.
"Arjun, What if they ask for unrealistic hikes? I have negotiated with candidates asking 100% hikes," the co-founder and CEO of ellow.io asked.
Replying to his question, Arjun wrote, "we don't ask their previous salary. And what we have seen is no one really asks for any crazy salaries. At whatever amount, can you get them to work with you should be the first question."
"I’m curious as to how these annual revisions are done. It's great that this model works for you, and I’m sure the returns are promising. I guess it's all about finding the perfect balance between investment and returns taking into consideration human emotions and behaviour patterns. For startups with limited resources or large companies needing bulk recruitment, it can be a whole different ball game," another asked.
"The annual revisions are pretty straight forward. Nothing earth shattering there, process or thinking wise . My personal goal is - give as much as a raise as possible that the word inflation doesn't enter the discussion. when team members are discussing currency fluctuations and the annual inflation rate, then you know you messed up," Arjun replied.
"This post should be used as a mini guide for recruitment," a third wrote.
"This is awesome and should be emulated by other recruiters. A situation where a recruiter is pushing hard on the candidate to save money for the employer should be discouraged," a fourth remarked.