Every time layoffs happen or salary discussions start, I see one common statement:
“New hires are getting 50–100% more salary than existing employees.”
But is that really the full picture? 🤔
As someone who has seen both sides, I feel the reality is much more complicated than what social media discussions make it look like.
🚨 The Hidden Side of “High Packages”
Many new hires are brought in with seemingly high CTCs, but what often follows is:
- Extreme pressure from day one
- Constant micromanagement
- Working nights + weekends
- Being expected to “prove” themselves nonstop
- Handling not only their own work, but also covering productivity gaps of entire teams
- Becoming the easiest target when something goes wrong
In many cases, they are pushed much harder than long-term employees because companies want to quickly extract maximum output.
And once critical deliveries are done?
Some are quietly removed before they even become eligible for severance or long-term benefits.
💔 What Most New Hires Actually Want
Contrary to popular belief, most new hires are NOT asking for:
- Higher pay than loyal employees
- Special treatment
- Shortcut promotions
Most simply want:
✅ Stability
✅ Respectful work culture
✅ Fair growth opportunities
✅ Healthy work-life balance
✅ Compensation parity with peers
That’s it.
📉 The “50% Hike” Myth
A lot of people see headlines like:
“This employee switched with a 50% hike!”
But the reality is often very different.
Usually:
- Only ~10–20% is actual fixed/base salary increase
- The remaining amount comes from RSUs/ESOPs, joining bonuses, or variable components
And even that gap often gets balanced quickly because existing employees may receive:
- Promotions 📈
- 20–30% hikes
- Retention bonuses
- Additional stock refreshers
- Better internal benefits
So the compensation difference is not always as massive as it appears on paper.
📊 The Stock (RSU/ESOP) Confusion
This part is misunderstood the most.
Example 👇
Suppose:
- An existing employee received ₹1 lakh worth of stock 5–6 years ago
- Due to appreciation, those same stock units may now be worth ₹2–3 lakhs ✨
Now compare that with:
- A new hire receiving ₹1.3 lakh worth of stock today
At first glance, it looks higher.
But because the stock price today is already much higher, the new hire is actually receiving:
👉 Fewer or nearly equal stock units
Meaning the displayed CTC looks bigger, but the long-term wealth creation may actually be lower.
🧠 The Bigger Problem
The industry has somehow created a narrative where:
- Existing employees feel underpaid
- New hires feel overpressured
- Both sides feel insecure
And instead of fixing culture, workload, and fair growth systems, companies often let employees fight each other over compensation narratives.
🙌 Final Thought
Many new hires genuinely want to stay long-term, contribute meaningfully, and grow with the company.
But often, they are never given the same trust, stability, or opportunity to do so.
💬 What do you think?
- Have you seen this happen in your company?
- Do you think the “high package new hire” narrative is misunderstood?
- Are companies balancing compensation fairly between existing employees and new hires?
Would genuinely love to hear different perspectives from both hiring managers and engineers 👇