Quick Answer
Congrats on reaching this stage. If you’re here, that means you found a candidate you’re excited about – and want to work with. However, there’s more that goes into an offer than coming up with a salary number and sending your candidate a letter. Based on 0+ technical hires we've made since 2019, we understand the critical steps. Below are five of our top tips for navigating the offer stage with a candidate, informed by our experience with 549+ active startup clients.
How to extend a job offer to a candidate
It is always a good idea to extend the news as warmly as possible; you want to convey your enthusiasm for your candidate. A phone call to let them know you’re sending over an offer letter is usually appreciated. This personal touch indicates genuine interest and commitment from your side.
Candidates may not be checking their personal emails every day if they are currently working or on vacation. However, they typically have their phones with them. A direct call ensures they receive the offer promptly and can ask any immediate questions. This approach helps to build rapport and shows respect for the candidate's time and potential interest in your company.
How much time should a candidate have to consider a job offer?
Try to give candidates as much time to consider the offer without impacting your hiring timelines. If you’ve been interviewing a candidate for three and a half weeks, try to give your candidate at least a few days to review your offer letter and respond. Remember, they’ve invested their time in interviewing with you too and deserve time to reflect on the role, compensation, or any other consideration they may have.
Pressuring a candidate for an immediate decision can lead to resentment or a declined offer. Based on our data from 0+ technical placements, the average time to fill a technical role is 29 days from req open to offer accepted. This indicates that the entire hiring process, including the offer stage, requires careful pacing. Allocating a reasonable period for offer consideration is a standard practice that respects the candidate's deliberation process and helps secure top talent efficiently. For an engineering role with an average salary of ~$252K, candidates often require time to weigh all aspects of a significant career move.
How to prepare for job offer negotiations
Do not be caught off guard by negotiations. Hopefully, by this point, you’ve already covered compensation and salary, and have a ballpark package in mind for what your candidate will accept. However, top candidates consistently advocate for themselves to receive top offers or more equity. For engineering and AI/ML roles at seed through Series C startups, where the average salary for placed engineers is ~$252K in our data, negotiation is a common part of the process.
If a candidate does want to negotiate, start by acknowledging that the best negotiations are those where both parties feel valued and understood. Candidates are not just looking for a good salary; they are looking for opportunities for growth, work-life balance, and a role that aligns with their career goals. Understanding these motivations can guide you in crafting an offer that appeals to the candidate beyond just the financial aspects. Be prepared with market data and internal compensation bands to justify your offer, while remaining flexible to address specific candidate needs.
What are creative solutions for job offer negotiations?
If salary negotiations reach a standstill, explore other areas where you can offer value. Flexibility in work hours, remote work options, additional vacation days, professional development opportunities, or even a signing bonus can be attractive to candidates. These alternatives can often bridge the gap between the candidate's expectations and your budget limitations.
Considering the investment in a hire, where a contingency fee can range from 25-30% of the first year base salary for technical roles, finding creative solutions to close a deal is often more cost-effective than restarting a search. For instance, offering a signing bonus can be a direct way to address immediate financial needs without permanently increasing base salary. Professional development budgets or mentorship opportunities can be highly valued by engineers and AI/ML specialists focused on long-term career progression, especially at growth-oriented seed through Series C startups. These non-monetary benefits can significantly increase the perceived value of an offer.
How to communicate career trajectory in a job offer
Let your candidates know what their trajectory could be like at your company. A successful negotiation does not end with acceptance. Discuss and outline potential paths for growth and development within the company. For example, if you’re hiring a Product Manager, do you see this role growing as the company grows and turning into a Director of Product Management in a couple years? That’s a great piece of information for a candidate who wants to advance. Or do you see this role moving into larger projects over time?
Showing candidates that there's a clear trajectory for advancement can turn an initial job offer into a long-term career opportunity. In high-growth startup environments, especially for engineering and AI/ML roles, candidates are often motivated by the potential for impact and career progression. Clearly articulating these pathways can be a decisive factor, signaling that the company invests in its talent and offers meaningful challenges.
What are red flags during job offer negotiations?
While it’s rare for an offer to be revoked (even if candidates are trying to negotiate), there are definitely some red flags that may come up during the offer stage, such as:
Negative or overly critical questions. If a candidate is aggressively inquiring about past employee conflicts, controversies, or negative press (unless they’re framing it constructively), this can be a red flag. For example, if the company was recently acquired and the acquisition received some negative press, it’s okay for them to ask if the acquisition will impact them. But if they come across as weary of other issues, this is something you may want to address with them head on before signing the offer.
Questions that have already been answered. This may seem obvious, but employees who ask a lot of questions that are clearly addressed in the job offer, employment contract, or accompanying documents may be a red flag. This may indicate a lack of attention to detail and that you’re not spending time seriously reviewing your offer. A lack of attention to detail at this stage could reflect a broader approach to their work, which might not align with the fast-paced, high-precision environments of seed through Series C startups.
Questions about severance or exiting a company. It’s understandable that layoffs are top of mind for many people, especially with the amount of press coverage they receive. But if your candidate comes across as seriously concerned about their ability to effectively complete the tasks of your new job, this may be a red flag. While candidates should be informed, an excessive focus on exit strategies before starting a role can signal a lack of long-term commitment or confidence in their own performance.
Why Recruiting from Scratch Knows This
Recruiting from Scratch was founded in 2019 in New York City and specializes in Engineering and AI/ML roles at seed through Series C startups. Our expertise is built on real-world data and experience, having made 0+ technical placements at 90+ startups since our inception. We've placed engineers at 549+ active startup clients, observed an average time to fill of 29 days (from req open to offer accepted), and our placed engineers command an average salary of ~$252K. Our high NPS of 90+ reflects our deep understanding of the technical hiring process and successful offer navigation. This direct experience and data-driven insights inform our advice on managing the offer stage effectively.
FAQ
How long should I give a candidate to accept a job offer?
You should typically give a candidate 3-5 business days to consider a job offer. This timeframe respects their need for deliberation while maintaining your hiring momentum. Pressuring for an immediate decision can lead to offer declines or resentment.
What is the average time to fill for technical roles?
Based on our data from 0+ technical placements, the average time to fill for a technical role is 29 days. This period spans from the job requisition being opened to the offer being accepted, encompassing all stages including the offer negotiation.
What is the average salary for a placed engineer at a startup?
In our data from 0+ placements, the average salary for an engineer placed at one of our active startup clients is approximately $252,000. This figure reflects the competitive compensation for engineering and AI/ML talent at seed through Series C startups.
What are common red flags during job offer negotiations?
Red flags during offer negotiations include overly negative or critical questions about the company's past, repeatedly asking questions already answered in the offer documents, or excessive focus on severance or exit strategies. These can indicate a lack of attention to detail or commitment.
What do recruiting firms charge for technical placements?
Contingency recruiting firms, particularly for specialized technical roles like Engineering and AI/ML, typically charge a fee of 25-30% of the candidate's first-year base salary. This fee is paid upon the successful placement of a candidate.
