Ask HN: Offer retracted because of negotiation?

[bigbear0310]

My friend has recently received an offer from a YC-backed 20-person startup. Negotiated the compensation in a polite email but they decided to retract the offer. I was mind blown and felt truly bad. Is it normal/ethical for companies to do this? If not, how can I post about this company's process so that other candidates are aware?

[nostrademons]

It happens sometimes. Usually it's because of one of two situations:

1) The company was on the fence about wanting you anyway, and negotiating takes you from the "maybe kinda sorta want to work with" to the "don't want to work with" pile.

2) The company is looking for people who don't question authority and don't stick up for their own interests.

Both of these are red flags. It's not really a matter of ethics - they're completely within their rights to withdraw an offer for any reason - but it's a matter of "Would you really want to work there anyway?" For both corporations and individuals, it usually leads to a smoother life if you only surround yourself with people who really value you.

[bigbear0310]

Agreed. To me it's a red flag about that company's culture.

[bigbear0310]

Also.. no phone conversation. No clarifying question. Nothing. Just one email saying they can't go higher. The second email a couple of hours later saying they have to go with someone else.

[endswapper]

Your friend made her/himself less attractive as a candidate because of the expressed dissatisfaction with the offer. That's why the offer was retracted.

Know how to close. Your friend allowed this to happen. There is nothing unethical or abnormal about the circumstances described.

There is no need to post anything beyond your question. Perhaps people will learn from the experience.

Apparently your friend didn't think it was a great offer, so there is no reason to be sad, or otherwise.

[bigbear0310]

My friend just wanted to understand if there was room to negotiate. She was going to take it anyways even if they said they couldn't go higher. So are you saying people should not negotiate at all then?

[endswapper]

Just about everything is negotiable, and should be negotiated. A big part of that is understanding what deal can get done. My point was to know how to negotiate and close.

Negotiating typically doesn't need to be cloak and dagger and being earnest builds trust and rapport. You can take a position and continue to negotiate. Even more so if you are asking them to match or get closer to your current comp. She left it open for retraction for hours.

[JumpCrisscross]

Negotiations are a transaction cost. If your services are a commodity, or if you make too bold an ask, the other side may prefer not to waste time.

If this is ethical this hinges on what they asked for.

[bigbear0310]

Ironically she did not make any ask. Basically she laid out the facts about her current comp and a competing offer, but stated that she liked this company more, so she would like to see if they could work together on this or if there's room for negotiation.

[JumpCrisscross]

That sounds like "I want to negotiate but don't know what I want". Could come across as a potential time suck.

[gdulli]

This is between your friend and the company. It's not our business. And it no doubt had more to do with the details and the subtext of their recruitment scenario as a whole than a fixed policy about how to respond to negotiation.

[alexmorse]

They made an offer, your friend rejected it and gave another, they rejected that.

That's how negotiations work guy.

[bigbear0310]

She did not reject it. Basically she said "it's lower than my current/other offer, and was wondering if this is something we could work together". It was all polite. She just wondered if there was room for negotiation, and was planning on taking it anyways. I think the employer is being really passive aggressive in that sense.