Why this Bengaluru CEO Never Negotiates Salary: ‘We Literally Pay Them What They Ask For’

Arjun V, CEO of Zoko, shares his unconventional hiring approach, sparking discussion on LinkedIn.

Salary negotiations are often a complex and integral part of the interview process. However, Arjun V, the Co-Founder and CEO of Zoko, a Bengaluru-based company, has taken an unconventional approach by eliminating salary negotiations altogether. This unique strategy has garnered significant attention and discussion on LinkedIn.

In a recent post, Arjun V shared his perspective on why he decided to stop negotiating salaries with candidates and instead, pay them exactly what they ask for. “After hiring 18+ members for my team, I’ve found the secret to retaining world-class talent: We don’t negotiate salaries. We literally pay what they ask for,” he wrote. 

Arjun provided further insight into his rationale, listing four reasons behind this decision:

The reason is simple:

– It eliminates back-and-forth negotiations and builds immediate trust

– It shows respect for their perceived value and expertise

– They have no reason not to perform their absolute best since they’re getting paid what they want

– Avoids distracting salary discussions that were unplanned

“PS: I’ve only negotiated salary once, and it was to increase the amount a candidate asked for. They undervalued themselves compared to others in the same role, so I had to tell them that and offer them more,” Arjun shared, highlighting his commitment to fair compensation.

Arjun’s post has sparked a wide range of reactions on LinkedIn. Many praised his approach for its emphasis on fairness and employee satisfaction, while others raised questions about its feasibility and long-term sustainability.

What did LinkedIn users had to say about the post:

“Arjun, What if they ask for unrealistic hikes? I have negotiated with candidates asking 100% hikes,” the co-founder and CEO of ellow.io asked.

Neetu Elsa Ninan, who works in AI and Analytics, posted, “I’m curious as to how these annual revisions are done. It’s great that this model works for you, and I’m sure the returns are promising. I guess it’s all about finding the perfect balance between investment and returns, taking into consideration human emotions and behaviour patterns. It can be a whole different ball game for startups with limited resources or large companies needing bulk recruitment.”

“This is awesome and should be emulated by other recruiters. A situation where a recruiter is pushing hard on the candidate to save money for the employer should be discouraged.”

This innovative approach to salary negotiations by Zoko’s CEO underscores a growing trend among some companies to rethink traditional hiring practices and prioritize transparency and fairness in their compensation strategies. As discussions continue, it remains to be seen whether more companies will adopt similar methods in an increasingly competitive job market.