Your current CTC v/s Your VTC

You might know your CTC ( Cost To Company )

But are you aware of your VTC ?

Before offering you a job, companies will often try to ask about your expectations and then based on your current CTC, they will determine what you will be worth and then present you with the final numbers. You are then asked to either accept it or negotiate it further.

But I am creating a new term called VTC ( Value To Company ).

I'm talking about the value you will provide to the employer.

But who can determine your VTC and how?

Nobody in the world can determine your VTC but yourself. And your current CTC has nothing to do with your VTC. You might be underpaid or overpaid ( depends ). But I'm trying to tell you that the intrinsic value of your VTC is an entity that can never be measured by an external entity.

So the next time you get into a CTC negotiation, always try to negotiate based on what you believe your VTC actually is.

I am deriving the below formula as a result.

Let the company's offer = o( CTC ) 

Let your absolute VTC = y( VTC ) 

Let the intrinsic value add = V 

Now, 

y( VTC ) = o( CTC ) + V 

Always remember,

Nobody in the world can measure the intrinsic value of "V" but yourself. This intrinsic value keeps growing exponentially as you progress in your career and acquire new skills.

Thanks for reading,

Manoj