| name | offer-strategy |
| description | Use when constructing offers — covers leveling, package construction, equity, sign-on, negotiation, and pay equity at offer. |
Offer Strategy
Core Principles
- Level via competency, not years
- Comp flows from bands, not negotiation skill
- Document every exception
- Pay equity at offer is the cheapest place to enforce fairness
- No salary history asked or used (often illegal; always corrosive)
Leveling at Offer
Inputs:
- Scorecard evidence per competency at proposed level
- Calibration check vs. internal employees at that level
- Reference signal
- Stage/scope of role
Failure modes:
- Years-of-experience proxy (high variance)
- Title-matching from prior company
- Pressure to over-level to close ("they'll accept if we level them up")
- Reverse pressure to under-level for budget reasons
Package Construction
| Component | Default | Notes |
|---|
| Base salary | Midpoint of band | Below for green-at-level; above for proven |
| Equity | Per leveling rubric | New-hire grant + refresh expectation |
| Sign-on | When bridging unvested equity or compensating relo | Not a "make it competitive" hack |
| Relocation | Defined policy | Not negotiated; consistent |
| Bonus / commission | Role-dependent | Sales typical; many ICs no bonus |
| Benefits | Standard | Don't differentiate to close |
Negotiation Patterns
| Pattern | Pros | Cons |
|---|
| Transparent range, no negotiation | Maximum equity; fast offers | Doesn't reward strong cases differently |
| Window range, modest negotiation | Preserves equity; rewards genuine value | Requires discipline |
| Open negotiation | Flexibility | Worst pay equity; rewards negotiators |
Default recommendation: window range with documented pre-approval for moves outside.
Negotiation Conversation Framework
When a candidate counters:
- Re-anchor on level: is the proposed level right? If yes, the band is right.
- Identify the gap specifically: cash, equity, sign-on, start date, title?
- Decide: is this candidate worth the band ceiling? Or is this a level-bump situation?
- Document rationale for any non-standard move
- Watch for gendered patterns in who counters and how aggressively
Avoid:
- Counter-offer matching for retention threats (rewards defection)
- Verbal promises beyond the written offer
- "We can't pay more, but if you join we'll give you a quick raise" — corrodes trust
Pay Equity at Offer
Critical guardrails:
- No salary history: don't ask, don't use, illegal in many jurisdictions
- Consistent offer-to-band ratios: monitor across demographics quarterly
- Counter-offer guardrails: pre-approved windows, not free-for-all
- No "negotiation premium": candidates who push hard shouldn't get materially better offers than those who don't
The gender pay gap data is unambiguous: women negotiate less aggressively (and are penalized more when they do). Process design that rewards aggressive negotiation produces gender-disparate outcomes.
Exploding Offers
Avoid 24–48 hour pressure:
- Inhumane (candidate likely has other commitments)
- Often illegal in some jurisdictions
- Signals disrespect
- Often a sign that the company couldn't close on the merits
Reasonable expiration: 5–7 business days (sometimes longer for senior or international).
Closer Strategy
The senior leader / hiring manager closing call:
- After offer extended; before decision
- Address remaining concerns (mission, team, scope, growth)
- Not the moment for new comp negotiation
- Reinforce why the candidate would matter to the company
Common Failures
- Founder side-deals bypassing band
- Salary history asked or used
- Range not shared upfront (especially in pay-transparency jurisdictions)
- Offer terms changing post-acceptance
- Surprise terms in the offer letter (vesting, restrictive covenants)
- Mass offer-letter generation without comp partner review
Documentation
Every offer:
- Leveling rationale (in writing)
- Comp position in band (compa-ratio)
- Approver chain
- Demographic data for offer audit (where collected)
Quarterly Audit
- Offers extended by demographic
- Acceptance rates by demographic
- Offer-to-band ratios by demographic
- Counter-offer outcomes
Cross-References
compensation-strategist — Bands and philosophy
structured-interview-designer — Provides scorecard input
career-framework-architect — Provides leveling rubric
equity-architect — Equity grant structure
dei-strategist — Pay equity at offer audit
Key References
- Bock, L. (2015). Work Rules!
- Bohnet, I. (2016). What Works.
- Pave / Carta / Levels.fyi data on offer norms