Have you ever wondered why there is a column to enter your current CTC in a job application form or why there is a standard question during your interview to know it? There are clear reasons to back these questions. It literally saves yours and recruiters time/effort. Wondering how?
Scenario 1:
Suppose you have successfully completed all rounds of interview process and HR Recruiter gets to know that your salary package expectation is much higher than the budget of the company or the budget just matches your current CTC. This will completely waste the time and effort of HR Team to close a position within turn around time and candidate time too.
Scenario 2:
Each open position will have a budget which needs to be strictly followed by HR Recruitment Leads of a company. Understanding current CTC of the applicant gives insights to HR recruiter about the expectations and commitment of a candidate. If the current salary or expectations exceeds budget availability of the employer, they will reassess the budget or look for candidate who will fit into their budget.
Scenario 3:
Starting the recruitment process with accurate data and market intelligence report is the best way to start the candidate search. The intention is to make well informed decisions by HR Lead.
Scenario 4:
Salary history also helps the HR's in getting valuable information about the candidate’s career progression. A Steady rise in pay demonstrates increased responsibility over time and show that the applicant was successful in previous positions.
 So the ultimate aim of getting the CTC is to ensure that the hiring process is as efficient, transparent and cost-effective as possible for all parties involved.