offer-strategy

# Offer Strategy ## Core Principles 1. **Level via competency**, not years 2. **Comp flows from bands**, not negotiation skill 3. **Document every exception** 4. **Pay equity at offer is the cheapest place to enforce fairness** 5. **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: 1. Re-anchor on level: is the proposed level right? If yes, the band is right. 2. Identify the gap specifically: cash, equity, sign-on, start date, title? 3. Decide: is this candidate worth the band ceiling? Or is this a level-bump situation? 4. Document rationale for any non-standard move 5. 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