Why Insistance on Current CTC to Propose fresh

It has been observed during the recruitment process that invariably every recruiter / employer insists on deciding the proposed compensation on the basis of current CTC of the candidate.
I have always wondered as to why so much importance is given to this information.There may be many instances when a person , due to various compelling reasons,has compromised on his last CTC and accepted a job at a lower figure.
When the circumstances change and the candidate is in a position to shift over to another job why should the current CTC be a constraint in advancement towards better remuneration / perks?
Is it not exploitation without considering the merits? Will a candidate be loyal and deliver the best knowing well about this exploitation.
Are employers themselves not responsible for sowing discontent from the very begining by disregarding their own affordability and basing their decision on the existing figures.
Learned members to advise to enable a paradigm shift in the entire process leading to enhanced employee retainability.
Warm Regards

Hi
as far as i can say, it is based on several factors
a) recruitment team will have a base factor of market rate for the skill set they are getting from the employee.
b) availability of suck skill sets in the market. Purely driven by economics of demand and supply. More the supply lesser will be bargaining power of employees.
c) responsibiliy of recruitment team to contribute to the bottom line by making best recruitment at least cost to the company
d) Unless an employee comes with tremendous credential, employers expect him to prove his claims by his performance. if found good, they may reward on later stage.


regards
Raghuram.S

Its all disbelief with candidates that the new employer has and he wanted to know whether he lies or says truth.

a professional HR would tend to match with their available accurate details with the fixation of remuneration to the proposed employee.

There cannot be hard and fast rules to demand the current ctc from the candidate. my view goes like this.

kb

Thanks for the views.However,the question remains as it is.Why should recruiter depend on the candidate for such information to set up bench marks? I have clearly spelt out the reasons for not depending on this figure.Mycontention on the relevence of this information still remains unanswered. It is basically the urge to contribute to the bottom line which compels recruiter to initiate the exploitation. This, in most, I repeat most of the cases results in sulking and discontent later on. Employee retainability is far more economical than perceived additions to bottomline by HR which are negligible as compared to the overall expenditire.
You may always say that an employee will remain unsatisfied no matter the offered compensation but that is a very General statement.
If the candidate is found otherwise acceptable is it fare to exploit weakness of lack of bargaining power which is driven by individual circumstances rather than the candidates basic trait.Is it not judicious to ask for a minimum acceptable remuneration or straight away reveal employers affordability rather than base on existing CTC?