Feeling Stuck in Salary Negotiations: Should I Accept a 30% Hike or Hold Out for More?

I have been working for five years in a small company and am now looking for a change due to financial reasons. Additionally, my salary package is well below the market rate. The reason for staying was to gain knowledge at the expense of money, which I hope to make up for later.

At the time of salary negotiation, when I request a salary that aligns with the market range, HR states they can only offer a 30% increase as per company standards. However, during the initial screening, they mention that salary is not an issue. This inconsistency has occurred in a few interviews (4/5), and I have not accepted any of them.

Should I accept the 30% hike or wait for some time? Also, I am trying to understand the reasons for the change in their statement.

Dear Param,

I do have the handicap of not having worked in any industrial organization, either in the private or public sector, nor do I possess any first-hand knowledge about salary fixation for recruits.

However, based on my interactions with young job seekers and experienced HR professionals, I understand that when hiring experienced candidates for the same or similar level positions, the amount of salary last drawn in the previous organization, which may be comparatively small in size and scale of business turnover, is an important factor for the initial salary fixation in the hiring organization.

In your view, a 30% salary increase offer may seem insufficient. However, if you are dissatisfied with your current organization and see better career prospects elsewhere, a 30% hike might be a reason for you to consider making a change. Ultimately, the decision rests with you.