Google’s Answer to Overheated Job Market: Demanding Proof of Rival Offers
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And if you decided to leave, then it freed up a space for someone else who would be happier in your role, and if you stayed it provided information to HR for level setting not only you but all your peers as well.
It's not enough to win; the other side must lose too.
Capital cannot concede any bargaining power to Labor, no matter the cost.
Just one historical example. The railroads nuked the unions (Wobblies), centered in Spokane WA. One tactic was charging more for freight to and from Spokane, the geographical center of the Inland Empire, than to bypass Spokane. So Seattle to Chicago was cheaper than Spokane to Chicago, even though the trains still go thru Spokane. Broke the union. And Spokane never recovered.
I didn't realize this wasn't being done everywhere.
When I left a few weeks later, they attempted to provide a counter and the promotion to a level that was still below where I probably should have been hired into.
As an employee I don't think I would agree to a counter offer either. Once you make a deal (agree with the other company's offer) that's what you "shook" on. Obviously people have a diff pov on this and that's okay.
Human resources personnel and interviewers are likely frustrated with the experience of interviewing and arranging for offers for many people who are not accepting; this may be causing an appreciable decline in employee morale. Additionally, interviewing is fairly expensive, especially when the success rate (of hiring candidates that make it through multiple stages of interview) declines because of the effect I am describing.
Executives may have decided upon this course of action to correct the two problems I describe immediately above.
If I prove to Google that I am getting another better offer, how can I negotiate to make them eke out maximum salary?
For ex - Suppose I am getting USD $100k/ annum from Facebook, what is the maximum amount I can ask from Google and make them pay?
Candidate: Well, I have an offer from FB for $x++ salary and $y++ RSUs.
Recruiter: Let me speak with the hiring manager and see what we can do.
Looks like recruiter are updating that last line to be something like,
Recruiter: Can you forward me a copy of that offer letter and the name of the person who sent it so that I may verify its authenticity? After that, I'll speak with the hiring manager and see what we can do.
“Actually, I’m very close to going with this new offer. I really clicked with the team. If Google wants to counter, I can wait till tomorrow to make my decision”.
I think constant wage fixing has actually backfired for big tech. The savings in pay they have made might be an impressive number but it is very little compared to what they leave on the table whenever they fail at a software eating the world project, and they end up with a lot more competition from companies that can afford to match their compensation despite operating in much smaller markets and having very little profit relatively.
Believing that [X] company "should pay what the employee is worth to them" is misunderstanding how companies operate.
The better question is: "Does it actually bring better long-term value to the company?" For those who think it does not, then the strategy seems in conflict with achieving the best results.