Google Compensation - 2021

a few major developments have happened in google's compensation model in 2021 and no item is bigger than the front loading of stock in this video we are going to cover eight compensation items including one bonus item so if you're planning on interviewing at google or are interviewing at google or are in the negotiation phase at google this is the video for you and the specific items that we're gonna cover are one that stock shift item two is going to be current comp three salary ranges four stock for sign on five is going to be best and final offer six is line of candidates seven is google's unique stock fest eight is ote and then we'll have that one bonus category item one stock shift google has shifted the way they do their four year initial grant there's four year vest it used to be 25 over four years and now it's 33 percent in years one and two and 22 in year three 12 in year four and what's so important for you to know is these four-year stock grants are making your overall offer your four-year average lower and also less negotiable and google had to do this right because they're taking a much bigger risk by giving up 66 of the stock in the first two years so in order to minimize this risk they had to bring the four-year averaging down and by bringing that four-year average down they are getting more fixated on year one year two when they used to talk more about the four-year average and so their messaging for this will be well you're going to get refresher grants you're going to get strong merits you have the good likelihood of getting promoted and these are all selling points to take you away from that for your average because years three and years four will come up without question these are all correct things that they're telling you but i don't want you to move too far away from that four or year average i also don't want you to get fixated on it but i want you to model it this way and so you just need to understand from a bigger picture perspective this will make for a more strategic negotiation and the one other item i want to focus in on is that this has not been a hundred percent consistent in 2021 google has played around with a few models that have front loaded stock but the 3333 2212 model is by far the most common and most consistent and none of our clients have gotten an offer differing from this since may of 2021. item 2 current comp in more than half the u.s states companies can no longer ask for your current compensation and there are two critical items to keep in mind number one just because they can't ask will does not mean that they will not push on current expectations and continue to ask for your expectations and number two the most critical detail and one of the most critical facets of this video is just because they can't ask it also means they can't consider it either and this is a critical detail because let's say you're making a lot more than what google wants to offer because of a specific court case in massachusetts they can no longer consider current comp in your offer and that could hurt you so what i want to talk about is what you do when this happens when you're making more and google says hey we can't consider current comp while they don't necessarily consider it it will still be a stake for your negotiation meaning this will be the reason why you push back and you could just simply say i'm not looking to make less money even if it's google and they will push their brand remember this is about positivity keeping the lines of communication open but you actually can use this data point even if comp won't consider it you can use it as the pushback or a pushback item item number three salary ranges in some states if you ask for it they are now required to give you the salary range always ask some states they won't give it some they will but always ask this can be misleading not only at google but any big tech company because base compensation is only a part of the model so while you're always asking you could even end up being disappointed because the total comp packages are high but the base salary ranges tend to be a little bit lower so it's just something to keep in mind so don't get too fixated on it but definitely ask for it so you can understand base compensation the two other parts will be bonus in stock compensation i can tell you on the bonus end l3 l4 l5 15 target bonus l6 20 target bonus and l7 25 target bonus and if you are meeting expectations you will get at least that number and sometimes within these numbers there's ranges to push it up even higher on the stock side it just varies a ton based on role but i can tell you technical positions technically get higher grants the stock is the number one item i want you to be focused on in your negotiations item number four stock for sign-on sign-on bonuses aren't great they're taxed heavily at close to fifty percent and it allows companies like google to really inflate your first year's number to make it sound even better than it is but google comp has consistently been pushing on this in 2021 and recruiters are telling our candidates our clients that they'll give them a sign-on but for less stock and they've always done this but this has been a definite more recent focus and i can tell you over time stock is the much better play in 2013 i was given this option if i had taken the sign on i would have missed out on 62 000 additional dollars in today's stock value so remember bolstering that first year number may look good on paper but in reality it's taxed high and it's not the best bang for your buck item five best and final sometimes but not always so when you're negotiating and they come in and they say best and final understand at this point you're not likely to make any big or huge leaps but you can still move the needle and more than half the time when we've worked with our clients best and final we've been able to push the needle a little bit more this is the stage where being gracious and kind is going to be absolutely critical and will benefit you the most so when you hear best and final some candidates will just accept that as truth but if you're really not happy with that final number it's okay to push back as long as you're being gracious and kind item six line of candidates i want to briefly touch on this subject i did a linkedin post on this item and it created a lot of controversy if you are interviewing for a niche down role the likelihood that there's a line of candidates that are also hc approved and in the offer stage slim to none if that was the case the google hiring process would be easy uh recruiters would have the easiest job because they'd always have a line of candidates it's just not the truth so if you need a little bit more time if you need to push back do it we had a recruiter say to one of our clients recently they had three other people with in the offer stage it's just not the reality but do not focus on those other people focus on on yourself and your needs and that will help you have success item number seven unique stock fest one of the least known aspects of the google hiring process is the unique two-year vest this will come up if you have a competing offer or have a strong current compensation in a state or country where they can consider that in regards to the compensation that google will offer you and we got this recently for an emea client who was making a lot of money at their current company so the two-year vest is basically an accelerated vest that will happen over the first two years specifically and it's added to your initial four-year best item eight ote which is short for on target earnings i want to briefly touch on this subject for all the sales people out there the first and most critical data point is finding out whether the role is straight bonus or ote this came up with another emea client and we thought it was straight bonus and it ended up being ote and it impacted the results of their negotiation so you always want to find that out up front ote is typically for somebody who's going to be in a role with some form of sales target and in the u.s specifically has fallen between 42 and 43 in 2021 we've not seen it fall outside of this range so if you hear anything else just push back a little bit and remember base salary base salary is going to be the best way to get every little extra dollar out of that bonus item number nine is the bonus material and i just want to reflect and take a moment to say hey the number one area to negotiate on is stock and will always be stock even if they're negotiating a little less on that piece now three other critical areas to keep in mind and i'll pin my salary expectations video up top but step one no numbers hold off as long as you can in giving numbers step two be gracious and kind respond to everything in a nice manner it's their job to ask take your time in responding and be thoughtful step number three set the anchor high i put almost all my emphasis on this now this is science if you come in with a high number this becomes the baseline and the goal is to provide this anchor when they want to hire you that's why no numbers early on is so critical think 20 to 30 percent over what you want and don't be fearful that they'll remove you from the process for these big numbers because you've set that anchor late stages because they already want to hire you they're already interested in you they're not going to just drop the offer because you anchor high we set the anchor high and what this also does is this helps not only in setting expectations but in future negotiations especially if they come in a little bit short you can say hey we're really close if you can meet me in the middle or come up a little bit so the anchor is incredibly powerful i know that this is a lot of data i really hope it helps there's so many items to consider when negotiating with google if you like my content please like if you have any 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Channel: Jeff H Sipe

Views: 76,571

Keywords: jeff h sipe salary, jeff h sipe, google salary, google salary negotiation, google compensation, google stock, google base salary, google bonus, google total compensation, google benefits, salary negotiation, compensation, comp negotiation, salary expectations, what are your salary expectations, negotiating a job offer, negotiating a job offer salary

Id: 1g9PbyGGIRI

Length: 11min 9sec (669 seconds)

Published: Tue Jul 20 2021