Stuck in Salary Negotiations: Will HR or the Business Team Decide My Offer?

Hi, I had a few rounds of interviews at an MNC. I was asked about my salary and expectations about 15 days ago. I have come to know that HR does not want to offer a salary higher than a 40% hike, whereas the business team wants to offer more to achieve parity within the team. HR mentions that company policy restricts them from providing a salary increase beyond a certain percentage, which is causing the delay in resolving this matter.

In this situation, will there be any issue with them sending me the offer letter? Will they inform me of their final decision, or is there a possibility that they may choose not to extend the offer at all? They have not directly addressed this situation with me yet.

Also, in such circumstances, who holds the final decision-making authority: HR or the Business Team?

Understanding Salary Hike Decisions in Organizations

You have done your job! In fact, a 40% hike and above is very high and likely to face non-acceptance. It is your requirement against the company's position, and both have their own requirements. In any organization, HR and HODs, where the position exists, work together unitedly and should not get confused. In some places, the HOD might say, "I have found someone suitable, appoint him." Here, HR will issue the appointment letter. This also has a purpose behind it: HR will not sign the appointment at the demanded salary if it will disturb the salary structure in the organization. In most organizations, HR fixes the salary and decides everything, as they have the main role as the position holder.

Regards,
RDS Yadav

Director, Future Institute of Management and Technology

Hi RDSYadav,

So, you mean they will likely issue an offer letter at a salary limit fixed by HR? I hope I will at least get an offer letter.

Anjali,

You are asking the members of the forum to judge and decide what the internal procedure and decision-making process is in a company we know nothing about. Anything we say is a guess. You need to communicate directly with the concerned business team and check what is happening.