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I did this mistake 3 times in my career so far. I thought it was wrong and unethical. Recently, I realized that my collegues were earning around 80% more than what I earn when I joined in my company. I'm planning to do it in my next switch as I don't want to be underpaid any more. My company gave 25+ % hike multiple times, but still I was underpaid.
There is no standard in salary for a specific role or anything in most of the companies. It is possible that a lateral entry earns more than his lead. So, the only reason why people are getting better package is because of an existing offer. My policy is that if a company is asking for existing offers, I shouldn't worry too much about screwing them. There was a time when some HR used to say that we can offer only 30% as it is the "company policy". Anyway, they have the profit margin to pay a decent salary for sure.
I'm planning to be upfront about my intention to small companies or startups as it can affect them more than a company who has the reputation and budget to hire someone in short period of time.
You should definitely take the better offer. Try to collect 3-4 offers atleast so that you can negotiate and get the package what you want.
@L&T what would be your suggestion for someone who is having same mindset as you? I am also hesitating to be shameless and hunt for the package I want as I am already having one offer. I know I will regret it later but want to know how you feel as you have already been in that position and know that you have done some mistake.
I never want to backout from the offer once i agreed because i know how much effort people need to put from other side to hire right candidate may be because I strongly believe in good karma but after my current experience where hiring team took advantage and played too low and after suffering for a while i understood if u have to struggle let it be with more package end of the day u get something more than struggling fully...now still I prefer to get my offer revised than denying it for few lakhs more..if new company is willing to consider then mark it for long term career!
Go for higher offer and also for better roles and projects. Everyone is doing it its not a crime..