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Can we hide / manipulate salary details?
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Can we hide / manipulate salary details? - 02-04-2007, 11:25 PM

I have one basic question --

"Post MBA how Companies decides your pay package or more specifically on which factor it depends?"

I know the general reason for above question...


The reason I am asking this is, one of my friend is working for 2 yrs n right now his annual package is 2.4lk/annum

now, he is worried that if he shows this salary, the package he will get in that range only, ie, 30-100% increment....


now he is wondering whether he can show fake package of 4.5lk/annum so that he will get better package from companies?

is he doing the right things or will this strategy get backfired?
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Re: Can we hide / manipulate salary details? - 03-04-2007, 12:11 AM

Well, I am not in favor of faking salary slips. These days good companies have a solid verification system. So if you are caught , you lose the job but carry the humiliation and shame with you.

People do temper with the salary slips and sometime get away. Also, they tamper with the amount in a small way. But in your friends case, it is huge...from 2.4 to 4.5 LPA


Personally, I am against it and would have adviced my friends to stay away from such activities.

PS: Go easy on the fonts


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Re: Can we hide / manipulate salary details? - 03-04-2007, 02:54 AM

Quote:
These days good companies have a solid verification system
Can you please elaborate this point? please provide some detail explanation
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Re: Can we hide / manipulate salary details? - 03-04-2007, 07:57 AM

Quote:
Originally Posted by xcoolaryan View Post
Can you please elaborate this point? please provide some detail explanation
Once they hire you, companies have there own contacts(may be a MoU) or hire other consultants to verify your background details. If they find that the person has taken them for a ride, then his terminated with immediate effect.


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Re: Can we hide / manipulate salary details? - 04-04-2007, 12:34 AM

But India has more than 3lk companies registered....

my friend is planning to show salary slips on a company started by his friend instead of the company where he was actually working?

Now can you tel me what are the odd that he might get caught? Do you find any loopholes, if yes, which one? How to correct them?
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Re: Can we hide / manipulate salary details? - 04-04-2007, 01:06 AM

Quote:
Originally Posted by xcoolaryan View Post
But India has more than 3lk companies registered....

my friend is planning to show salary slips on a company started by his friend instead of the company where he was actually working?

Now can you tel me what are the odd that he might get caught? Do you find any loopholes, if yes, which one? How to correct them?
India do have more than 3 lakhs companies registered but people who are recruited in a lot of say 1000 can be at max , from 100 different companies.Also, its not the headache of the company to verify the records. Ad mentioned earlier, they outsource it to the companies which specialise in this thing.

I cant comment on the odds that he will be caught or not. I have never done this and will never advise my friend or relative to this.


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Re: Can we hide / manipulate salary details? - 04-04-2007, 01:20 AM

Sometimes if a company is not able to trace ur last job details they themselves inquire into by contacting the mentioned company and if they find out then u r dead as a tandoori chicken and in the case u hv mentioned u may get away with it but never ever do this at the stake of ur career


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Last edited by fidel mehra; 04-04-2007 at 01:22 AM. Reason: spelling error
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Re: Can we hide / manipulate salary details? - 04-04-2007, 01:51 AM

Thnkx rmbt fidel mehra

one more thing....how companies find out exactly,

i mean do they look after your PAN CARD, TAX RETURN / FILLING STATEMENT or through any other source...

please, let me know, so I can ask him to cover those areas too

as I mentioned earlier,
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Re: Can we hide / manipulate salary details? - 04-04-2007, 05:04 AM

Here is the good news:

Companies that you work for cannot (according to the law of the land) divulge your salary. So no amount of background check is going to help there. They can just say 2 things: (a) Duration of your employment (b) Title. Some companies go a step ahead and ask you to give reference of your manager. Even then they cannot ask for your pay. So you have an air-tight case here. So all the above posts about the background check on pay were humbug (I feel sad when people geniunely try to help but end up mis-informing).

Here is the bad news:

Most companies ask for your last pay slip and some smarter ones also want your last raise. So that way they know that you are not coming to them in May when you got the 20% hike in April. Forging documents for a few lakhs of rupees is the stupidest thing you can ever do to tarnish your career. Even if they get a whiff of it (say you are getting 5lpa as a s/w engineeer at Chirkut Software Services) you are jacked!! Your career can be ruined as it can even initiate a legal proceeding against you. If its your friends company and you can make things air-tight go ahead and do it. Most large companies will usually discount your previous pay if its extraorbitant from a small company. Their premise is simple "We pay X rupees to this guy who joined this company 2 years ago from college. We cannot pay you X + delta when you are coming in from another company and dont even have the same exposure to our company perspective and technology as he has". It is hard to negotiate.

Here is some positive news:

Companies pay people based on a variety of factors. Here are some:

(a) Uniqueness of skillsets - Getting someone who was worked on DSP (digital signal processing) is a lot more hard than some one who has plain vanilla Java experience. More like a demand-supply thing.

(b) Company policy - Most larger companies (TCS/Infy/Wipro etc) follow the footsteps of the PSUs. They usually have a band for which they pay only so much. So with 2 years experience they would put you as say Software Engineer Band 2. And at that level there is only so much you can get. There is very little room for negotiation.

(c) Fit - Say they are looking at someone with experience in the commodities derivative market and you have 2years solid exp working for a hedge-fund company with a certification from NSE. You have a good base to negotiate. This differs from (a) because in this case you do have an option of getting a smart bloke and train him.

(d) Urgency - If you fall in category (a) or (c) and the company is looking fast to hire someone they might stretch a bit to pay you a premium for that.

(e) Intangibles - Who would you define "leadership" or "communication" skills? So you meet this guy in an interview who is clean, crisp and has a personality of a talkshow host. You would want to hire him because you feel not only will he be a good brand ambassador he will also be able to motivate and work great in the team.

(f) Previous salary - This is more like a parameter against which they would want to peg your current salary. I mean they wouldn't offer you the job with a 20% pay-cut but at the same time no matter how good you are they would think twice before a 100% increase. Unless its a totally different job role or some which involves risk (say night-shifts) its your previous pay which is going to act as the barometer.

(g) Market standards - Most company HRs have a pulse of the market. They know what the competitors pay. They know where on the bellcurve they lie and its compensation is based on that.

(h) More than just take-home - Some companies pride in providing A+ facility which is more than just a number. Free food. Free cab service. Free trainings. ESOPs. These are accounted for in the "gross pay" but maynot show up on your payslip.

I could go on .......... but I will stop here

So ask yourself - what do you bring to the table? How would you sell yourself in an elevator pitch ? Saying that you have 2years experience in Java is not going to help you sell yourself. There are a million others from AP who are willing to work for a lot less. Once you are able to figure out your spiel you can convince the HR to go down your train of thought and make them stop at Moneyville

And please stop taking money as a criteria to guage how well you are doing in life/career. I used to earn about 84,000 p.a when I started my career - but what stood me in good stead (and what helps me negotiate a lot larger package now) is what I learned and what I did then. So my sincere advice is stop worrying about the 2.4lpa and 4.5lpa - in life that extra 5000bucks a month (which may seem a lot now) is just not going to matter. Focus on building a career.

Hope this helps,

Arun


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Last edited by Psychodementia; 04-04-2007 at 05:10 AM.
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Re: Can we hide / manipulate salary details? - 04-04-2007, 03:24 PM

Sharing my experience on background checks, as i work in risk and compliance of Fortune 300 US co.

1. most co.s hire Firstadvantage, onicra, hill associates, globe or similar 3rd party consultants. these consultants have emps in payroll or contacts in most major towns/cities

2. Different types of checks done are
a. employment inc salary, position, profile, no. of years feedback from immediate boss, feedback from HR manager. Also whether the exit was formal or absconding or termination etc Very detailed.
b. Criminal background and address checks for present residence, permanent residence and all other places lived. min is present and permanent.
c. Education verification for highest degree/diploma from college/Univ
d. Database verification/newspaper/public info verification etc

3. All these come as package or pieces depending upon the reqmts of the co. Costs between 2000 to 8000 INR. More for foreign address/emp/edu verification.

4. co.s like Wipro, Intel etc go for full package. most captive bpo's also. many go selectively for employees handling sensitive customers/data/projects.

All salary details verified with HR and immediate manager thru mail, copy of which submited to client/hiring co. no scope of fudging. taken very seriously if more than 10-15% for entry level jobs. none at senior levels. plus salary slips.

Existence of co.s verified with registrar of co.s, IT deptt and so on, some official some unofficial. Includes site visits and opinions from field agents. friend co./family business kind fudging will be caught.

major gaps-Red report-immediate termination(with/without legal action)
minor gaps-orange report--emp shd get things clarified thru additional documents etc
no gaps-green report

most 3rd parties customise reports as required. now has become US legal requirement for some sectors like mortgage/BFSI.


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