While i tempt to agree with Raj Kumar to a large extent, as compensation offered to a prospective employee is based on organisational philosphy which is again based on factors like location, prevailing salaries in that industrial segment, value of the job etc. However, there are some reasons which make it desirable to have existing salary details. Some of the reasons could be:
Where candidate express their expected compensation at new place in percentage hike.
Where you find a guy extremely good and wish to hire him and go an extra mile which may necessaciate exceeding upper limit of the salary band for that level, it seems rational to be sure if the candidate has not falsified his current compensation.
There are some mechanism to have a reasonable good idea of his salary. The same are:
- Ask him to bring along the letter in original the last appraisal letter giving break down of his revised compensation.
- Ask for last 3 - 6 months salary slips.
- Ask for Form 16 for last year.
A serious candidate is expected to come up with these documents at the time of interview and in all probability will not give false compensation details under such circumstances.
However, once you have hired someone, no useful purpose will be served in gathering last employment salary since you will not fire him just for this reason whereas he may be doing very well on his job responsibilities.
I strongly feed that organisations should have their compensation plans updated as per their respective industrial segment, location, nearest competitors etc and stick to the same, but I understand many a times this is not feasible and that is the reason why one has to yield to candidate's demands, although not a healthy trend.
thanks,
With Regards,
Arun Tripathi