Candidate seeks Rs 35,000 salary, IITian founders offer Rs 50,000 instead. Here's why
A candidate earning around Rs 30,000 sought a salary of Rs 35,000, but IITian founders offered the full approved Rs 50,000 instead, saying compensation should reflect the role's value rather than the minimum a candidate is willing to accept. The employee stayed for three years, with the approach earning praise online.
In a corporate world where salary negotiations often revolve around saving costs, one startup is making headlines for doing the opposite.
When an engineer earning around Rs 30,000 asked for a salary of Rs 35,000, the founders chose not to negotiate or match expectations. Instead, they offered Rs 50,000, the full budget approved for the role, because they believed that was its true value.
The story, shared by the founders behind the Instagram page “IIT Ke 4 Launde,” quickly gained traction online, with many praising their people-first approach and calling them “dream recruiters.”
With employee retention increasingly becoming a business priority, the incident has sparked a wider conversation around whether compensation should be driven by negotiation or by the real value of a role.
WHAT HAPPENED DURING THE HIRING PROCESS?
The incident came to light after the founders behind the Instagram page “IIT Ke 4 Launde” shared their experience while hiring an engineer.
According to them, the candidate was already earning around Rs 30,000 per month and asked for only a modest raise to Rs 35,000 while interviewing for the role.
However, the startup had already approved a budget of Rs 50,000 for that position.
Instead of treating the candidate’s lower expectation as an opportunity to save money, the founders decided to offer the full approved amount.
As one founder explained in the video:
“The role had a value. The budget was already approved. If we can remove the burden of worrying about whether it is Rs 30,000 or Rs 35,000, then why shouldn’t we?”
WHY DID THE FOUNDERS REFUSE TO OPTIMISE COSTS?
The story did not end with the offer letter. A few days after joining, the employee reportedly asked the founders why they had agreed to pay him more than what he had initially requested.
Their response was straightforward; the compensation reflected the value of the work, not the lowest amount the candidate was willing to accept.
The founders also emphasised the long-term cost of underpaying talent, noting that retaining good employees often proves more valuable than short-term savings.
One of the co-founders revealed that the employee went on to stay with the company for three years, adding that losing him midway would have resulted in significantly higher costs through rehiring, onboarding and productivity losses.
Their philosophy, they said, has always been simple: quality over cost optimisation.
DID THIS DECISION PAY OFF?
It appears the decision paid off.
According to the founders, the employee stayed with the company for three years, reinforcing their belief that investing in people early can strengthen retention and build long-term loyalty.
The experience also challenged a common hiring approach where immediate cost savings often take precedence over long-term value creation. In this case, offering a higher salary upfront may have ultimately helped the company avoid larger costs associated with attrition, rehiring and onboarding later.
HOW DID SOCIAL MEDIA REACT?
The internet responded overwhelmingly positively, with many users praising the founders for prioritising fairness and employee value over cost savings. Several called the startup’s approach refreshing in an environment where salary negotiations often focus on minimising expenses.
One user described them as “dream recruiters,” while another HR professional said they fully supported the approach but admitted their company would never allow such flexibility.
Adding a humorous touch to the discussion, another user joked, “My HR says it’s AI.”
Others argued that if budgets are already approved, they should be used to recognise talent rather than simply optimise costs.
IS THIS A LESSON FOR MODERN WORKPLACES?
The story struck a chord because it challenged a familiar corporate mindset.
Instead of focusing on cost savings, the founders focused on the value of the role and compensated accordingly.
More than a salary increase from Rs 35,000 to Rs 50,000, the decision reflected an investment in people and trust from the outset.
At a time when employee retention remains a key challenge, the incident highlights an important lesson: fair compensation is not just good for employees, it can also be smart business.
In a corporate world where salary negotiations often revolve around saving costs, one startup is making headlines for doing the opposite.
When an engineer earning around Rs 30,000 asked for a salary of Rs 35,000, the founders chose not to negotiate or match expectations. Instead, they offered Rs 50,000, the full budget approved for the role, because they believed that was its true value.
The story, shared by the founders behind the Instagram page “IIT Ke 4 Launde,” quickly gained traction online, with many praising their people-first approach and calling them “dream recruiters.”
With employee retention increasingly becoming a business priority, the incident has sparked a wider conversation around whether compensation should be driven by negotiation or by the real value of a role.
WHAT HAPPENED DURING THE HIRING PROCESS?
The incident came to light after the founders behind the Instagram page “IIT Ke 4 Launde” shared their experience while hiring an engineer.
According to them, the candidate was already earning around Rs 30,000 per month and asked for only a modest raise to Rs 35,000 while interviewing for the role.
However, the startup had already approved a budget of Rs 50,000 for that position.
Instead of treating the candidate’s lower expectation as an opportunity to save money, the founders decided to offer the full approved amount.
As one founder explained in the video:
“The role had a value. The budget was already approved. If we can remove the burden of worrying about whether it is Rs 30,000 or Rs 35,000, then why shouldn’t we?”
WHY DID THE FOUNDERS REFUSE TO OPTIMISE COSTS?
The story did not end with the offer letter. A few days after joining, the employee reportedly asked the founders why they had agreed to pay him more than what he had initially requested.
Their response was straightforward; the compensation reflected the value of the work, not the lowest amount the candidate was willing to accept.
The founders also emphasised the long-term cost of underpaying talent, noting that retaining good employees often proves more valuable than short-term savings.
One of the co-founders revealed that the employee went on to stay with the company for three years, adding that losing him midway would have resulted in significantly higher costs through rehiring, onboarding and productivity losses.
Their philosophy, they said, has always been simple: quality over cost optimisation.
DID THIS DECISION PAY OFF?
It appears the decision paid off.
According to the founders, the employee stayed with the company for three years, reinforcing their belief that investing in people early can strengthen retention and build long-term loyalty.
The experience also challenged a common hiring approach where immediate cost savings often take precedence over long-term value creation. In this case, offering a higher salary upfront may have ultimately helped the company avoid larger costs associated with attrition, rehiring and onboarding later.
HOW DID SOCIAL MEDIA REACT?
The internet responded overwhelmingly positively, with many users praising the founders for prioritising fairness and employee value over cost savings. Several called the startup’s approach refreshing in an environment where salary negotiations often focus on minimising expenses.
One user described them as “dream recruiters,” while another HR professional said they fully supported the approach but admitted their company would never allow such flexibility.
Adding a humorous touch to the discussion, another user joked, “My HR says it’s AI.”
Others argued that if budgets are already approved, they should be used to recognise talent rather than simply optimise costs.
IS THIS A LESSON FOR MODERN WORKPLACES?
The story struck a chord because it challenged a familiar corporate mindset.
Instead of focusing on cost savings, the founders focused on the value of the role and compensated accordingly.
More than a salary increase from Rs 35,000 to Rs 50,000, the decision reflected an investment in people and trust from the outset.
At a time when employee retention remains a key challenge, the incident highlights an important lesson: fair compensation is not just good for employees, it can also be smart business.
