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How to Negotiate Industry Offers in AI by Rora - ICML 2021

Ways Offer Negotiations are Complex

Choosing the right job offer is a complex decision

  • Career growth requires choosing the right company, team, and manager in addition to your own effort. Every candidate should have an answer for:
    • How do you know
      • This company is on a growth trajectory?
      • This team within the company is influential/important?
      • This manager will support you and has the influence to do so and help you grow?
  • Candidates don't do enough due diligence to identify these environmental factors.
  • Switching costs are much higher for an employee than for a company.

3 negotiations before an offer negotiation

  1. Companies negotiate to get your salary expectations
    • Challenge: What should you say so the company shares numbers?
  2. Companies negotiate to get your counter offers
    • Challenge: What should you say without sharing counters + how do you use them to negotiate?
  3. Companies negotiate your offer deadline
    • Challenge: How do you identify when offer deadlines are real or a tactic?

Edge case terms in negotiations

  1. Signing bonus in the form of salary
  2. Level and seniority
  3. Travel stipend to visit significant other
  4. Negotiating vesting schedules of equity
  5. Retention bonus
  6. Car allowance
  7. Student loan payments
  8. Clauses in equity agreements (exercise window, option type, triggers, etc.)
  9. Severance
  10. Immigration support
  11. Paid Grandparents leave

It is complex who you should be negotiating with and when

  • Recruiters are not the decision maker
  • Candidates are negotiating against a team:
    • Compensation Analyst/Team: Decides on the actual offer amount and any changes
    • Hiring manager/Team: Understands the candidates business value and makes the hiring decision
      • Focus on this person.
    • Recruiter: Advocate for the candidate and act as communication between candidate and the company
    • Agency recruiter: Serve their customer (the company) to fill hiring quotas

Offer rescinds can occur from negotiating

  • Recruiters do not rescind offers, hiring managers do
  • Offer rescinds are so rare that if it occurs, the company was not invested in you or has a "shut up and code" culture.
  • There are two key ways to avoid losing an offer from negotiating.
  • How you communicate matters
    • "I expect a compensation of $$ 450 \mathrm{~K} /$ year" vs. "My understanding of my market value is that it is $$ 450 K /$​ year"
      • has an effect on the manager's perception
      • always offer explnation instead of saying things that sound as demands.
    • If the managers perception is already very positive then there is also more margin for error for communication.
  • Don't Negotiate When There's a Close #2
    • The likelihood of a manager rescinding an offer is based off of:
      • Are there second choice candidates that are as good?
      • How many is he/she trying to hire?
      • What has been your relationship with your manager?
    • Ask how you compared to the other candidates and if there were any close #2s. If there were and they are only hiring 1. don't negotiate.

When Should You Walk Away from an Offer?

  • As an individual contributor, I would reject any offer where you haven't been able to meet your manager
    • because the manager dictates the experience and growth.
  • Exploding offers - offer where deadline $<=48$​ hours
    • Shows the your value to the company.
  • When compensation gap is greater than $30K/year in base
    • Shows a difference in your expectation and company's.

Resources for Negotiation Tactics + Compensation

Q&A

  • Don't share numbers in the beginning.
    • Ask for their range.
  • US v/s EU v/s otehr places - equity and signing bonus is similar but base salary differs.
  • internships are useful
  • thumb rule between equity stake in a startup and size of the startup?: nope, higly variable
  • how reliable is levels.fyi in evaluating offers? - not very
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