Ask HN: What's the biggest red flag you've encountered during a hiring process?

185 points by ctc24 ↗ HN
I'll start.

A few years back, I was interviewing at a then "hot" startup. At the end of the process, the CTO calls and says they'd like to extend an offer. I was expecting him to walk me through the offer details, when he goes "well, are you going to take it?" I asked about getting some specifics (cash comp, equity, etc.) and he explains that they ask candidates to commit before sharing any details.

I told him that didn't seem like such a great idea, and he assured me that comp wouldn't be an issue, and that they do this to avoid hiring mercenaries. I passed and never looked back.

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When I was 19 and naive, I was interviewed for a desperately-needed summer job selling dictionaries door-to-door. The head interviewer wore a three-piece suit, gold watch, and an expensive haircut. He told me that as a demonstration of my independence and maturity, he wanted a commitment from me right then and there that I would accept the job and sign all the paperwork if he made an offer. If I wanted to go home and think about it or discuss it with my parents, that meant I was "immature" and didn't have the right stuff for the job.

Fortunately I had the presense of mind to see through that and walked out. When I got back to school, I found out that a friend of mine had worked for the same company selling Bibles in rural Tennessee; he hated it so much that he quit after a couple of weeks. He didn't make any money because the contract he had signed required that he stay for the entire summer before seeing a penny.

That contract sounds illegal, but I suppose that's another reason to recruit teenagers who don't know about labor rights (tbf IANAL and I could be wrong).
Yeah, I seem to recall the US having some big dust up about people working and not getting paid for it?
I was invited into an in-person interview in downtown San Francisco for a role on a digital marketing team at Adobe. I was interviewed one by one, by three potential colleagues (all women).

One of them condescendingly asked me if I voted for Trump, simply because I am originally from a non-blue state.

It was very strange, anti-toxic/toxic, and came out of nowhere. It made me consider secretly filming & voice recording interviews, especially in the SF Bay Area where people are a bit more influenced by political trends.

oops, typo--

"anti-toxic/toxic" --> meant to say "anti-social/toxic"

"You're not allowed to work on your own projects when you're not at work"

The biggest red flag ever

I can understand having this policy in place for projects that directly compete with a company. Working on a search engine at home when you're working on search at Google, or working on a banking product for farmers when you do the same thing at work could be a direct conflict of interest and incentivize unethical or possibly even criminal behavior. I think setting some guidelines in place for that kind of thing is reasonable.

But some companies take this to an extreme.

I was working on a niche clothing brand at home in my spare time for example when I wanted to work for a gaming startup. They were giving me such a repulsively hard time about my side project even though the clothing had literally nothing conceivably close to the company's business model.

It's so stupid because companies should try and hire people that have diverse experiences and are working hard to achieve something.

If it had nothing to do with their business, why did you even tell them about your side project? I would've just kept my mouth shut.
You can do this and I know of people who have done this. In virtually all cases, it's never going to come up.

But, for companies that are batshit anal about side-projects, they're going to make you sign some onerous contract and have management that are assholes about this kind of thing.

What happens in the event that you "hit the lottery" and some side-project becomes a big deal worth a lot of money? Somebody from your company is eventually going to find out about it: maybe from a public interview or from public records. If they put 2 + 2 together about when you built this and figure out that they can file some legal claim to it, you're in a mess of a legal situation that you don't need to be in.

Safer to put your cards on the table and make sure there's nothing in an employment agreement that puts something you really care about at risk.

The percentage of companies that are very anal about side-projects isn't substantial. They need you more than you need them and it's safer to be honest and look elsewhere for employment.

Electronic Arts!

Was told exactly the same, verbatim, followed by "besides you won't have time to work on them anyways".

in some states, isn't this against the law?

like texas and california diametrically opposed (I think)

texas: we own you

california: you can start a startup in your garage while working for someone else

The CEO had pictures of his racing Porsches all over his office, but the bathrooms looked like they hadn't been painted in 20 years. Told me all I needed to know about where the priorities were, so I bailed.
In the case above you agree and let them share details than say thanks I'll let you know.
I also don't signs of bureaucracy, lack of flexibility or emotional manipulation generally.

If a company cannot negotiate salary because of some corporate rules, I'm not interested. If a company will not give me any flexibility in working hours I'm not interested. If a company tries to make me feel bad about not immediately accepting their offer I'm very likely to not accept their offer at all.

Rigid companies which have no regard for your emotional wellbeing are not pleasant places to work and I struggle to give my best when I feel I'm not respected.

Years ago I was interviewing for a software engineering role. At the end of one of the interviews I asked how they liked working there. And the interviewer caught me off-guard with "it kind of sucks". She went on to explain that the company recently promoted a bunch of youngsters into VP roles through a combination of nepotism and early start dates, and they didn't know what they were doing. I thanked her and politely bowed out of the process when the hiring manager reached out to me with the next steps.

This was Nvidia in 2006 and their stock is up about 200x since then.

Nvidia, like many other tech companies, has many people/teams/departments/division. Is very hard to get a clear view of the world from a single point.

Who knows, maybe if you joined you would have hated it too, or loved it ! The story you shared is likely shared by many other companies that went through hyper-growth

TLDR: Stuff is hard!

NVidia was truly a spectacular opportunity. So was Microsoft, Databricks, etc. I picked a dud, and didn't realize it until it was too late (just now). Question is .. what are the obvious winners today, and for the next 10 years?

Some opportunities I missed but they didn't go anywhere: Docker, Qualcomm.

Consumer Devices is a general dud I think. Software and data is where it is at. I dunno?

Robotics
Any company to recommend in the domain? You are right that robotics has a good future. Just really capital intensive and hard to make money in the short term. I have a friend who is a founder in the space and man .. what a long slog.
I remember losing a candidate to databricks around 2012/2013. I thought he was making a bad decision. Hoo-boy was I wrong.
Right, now he’s got really valuable Paper money that they offer to buy back at a very steep discount. Anyhow wouldn’t feel bad about missing that one!
Thats really funny because nobody says this when the interviewer is giving red flags that arent blunt like that

Even in other posts here, people are like “whew I wouldnt want to work for a company where an unrelated recruiter and hiring manager did something nonstandard” as if it was a predictor of their team

If "promotes people to upper management who don't deserve it" was a disqualifier then you would be left with exactly zero companies to work for. Ultimately you have to be able to tell whether it's a systemic problem or just one disgruntled employee.
You're right of course. However, interviewing is a game of limited information and I consider all signal I get from the company (after all, they're doing the same with me). I think a few things had to be broken in order for an employee to feel strongly this way, end up in the interviewing panel, and feel comfortable to share their views.

Nowadays it may be easier somewhat to get some insight into inner workings, but in 2006 there was no Blind, Glassdoor, etc. Sometimes the positive signals outweigh the negative. In my case they did not.

I too have seen a lot of people in upper management who shouldn’t be there. I wonder if this means that nobody really deserves the respect and power we show to upper management.

They’re just people like everyone else, subject to the same psychological failings as anyone.

Giving people a lot of power over other people might just be a recipe for disaster.

Of course I’ve met some compelling leaders and I’ve seen them replaced with total fools so maybe there are people who are better at it than others. (Eric Schmidt springs to mind as an example of the former and Sundar whatever his name is an example of the latter) Maybe it’s just hard to tell the difference. Or maybe our selection process is flawed.

That's really odd, because I remember asking someone who had interviewed a lot and she said that kind of question is almost worthless. Everyone is where they want to be, so of course they like working there. They have also achieved their position, so they think it is a great place to work.

The question comes from a self-selecting population.

I prefer to ask something like, “What’s one thing you love, and what’s one thing you’d change tomorrow if you could?”

Everybody would improve something, and it can give you insight into actual day-to-day challenges.

If they say, “Nothing,” either it’s the one rare perfect workplace or they are too afraid or checked out to give a real answer.

Either way it’s informative.

cafeteria is a safe answer there.

(sort of like: "my one weakness is I work TOO hard!")

Yeah, this is definitely a much better formulation and one I've used in more recent interviews.
> Everyone is where they want to be, so of course they like working there.

This reminds me of the joke where the economist sees the $100 bill on the ground and says if it were real, someone would have grabbed it already. It assumes that the market is perfectly efficient when it is not. There are tons of reasons why someone would work at one job when they would prefer another job:

Maybe the local job market is poor, but the worker can't move.

Maybe their spouse has a medical condition that requires really good health insurance, and moving to another job would lose that coverage.

Maybe the worker has been job-hopping too much and has to stay at this job for another year or whatever.

etc., etc.

coding interviews
For coding jobs?
Probably read about it somewhere.
Funny enough, my curent position did not give me a coding interview. Rather they asked difficult technical questions about the technologies I used, and asked me to justify my use of them. I found this was a far better test, because coding out an algorithm is something you can just memorise.

Example: "You've used k8s, how and in what context?" "Ok, great, so you've AWS EC2 instances, how did you manage cost and performance there?" "You're listing Clojure here, what were your thoughts on X feature/limitation"? It was a rather fluid discussion about the ins and outs of technologies, stacks by engineers.

Sometimes actually interrogating someone's knowledge of a system works just as well. I code a lot of things slowly, and need to think through my designs with a pad of paper. I really can't do it when someone is hovering over my shoulder.

same here '__') last 2 was easy 1 time interview

"given this architecture diagram, what you would do if you have to debug/explain to junior how to debug a problem with this sympthom" or "how you would design an architecture with this kind of requirement"

oh but there's 1 coding challenge, just simple date addition/subtraction tho

Once, I had an interview where the hiring manager seemed uninterested in my questions about team dynamics and growth opportunities. It made me wonder if they valued open communication.

I believe interviews are a two-way street, and if a company isn't willing to engage in meaningful dialogue, it might signal potential issues down the road.

For those interested, we have open positions! https://www.ratherlabs.com/open-positions

Why are you linking job postings, for your current employer/company(?), in this thread? Seems like a very strange thing to do.
Many jobseekers will be in this thread, looking for tips. Seems like a smart place to pick up candidates.
You might even call it... a red flag.
Admitting the company is involved in drug trafficking.

EDIT: illegal drug trafficking

I was once asked “why do you want to work here?” while interviewing at a Hardee’s as a teenager.
I figure that at the level of fast food, the "why do you want to work here" and similar questions are really just to filter out someone that cares so little they can't even make up an answer. It doesn't have to be a good answer, even a "I like cooking food" is usually fine enough. But a decent amount of people will just shrug.
That's a legit question for a throw-away fast food job. Since most of these jobs are fungible, it can be useful to know why someone picked your greasy burger joint over the one down the road.

"It's close to where I live / I can walk here" = You probably don't have to worry about their "car breaking down" or general issues getting to work.

"My friends work here" = You're going to have a bunch of teenagers dicking off if you're not running a tight ship.

And there are a whole bunch of neutral responses too. "I need a job and you all are hiring" is a perfectly acceptable, accurate answer to this question that literally every applicant can provide.

> general issues getting to work

When I was applying for jobs like this as a teen, applications specifically asked about my transportation situation.

> You're going to have a bunch of teenagers dicking off if you're not running a tight ship

Just run a tight ship, then. People who didn't know each other beforehand will also dick around. I've made plenty of friends out of work colleagues.

> "I need a job and you all are hiring" is a perfectly acceptable, accurate answer to this question that literally every applicant can provide

Then I'd argue it's the opposite of legit: it's completely superfluous.

The question would successfully filter you.
I love the idea that fast food managers are using gotcha questions to select for the very best teenagers and not just reading off questions from some PDF they downloaded online.
For sure. I worked at dozens of restaurants between the ages of 15 and 23, and was never asked anything like that. From the lowest common denominator chains, to ma and pa diners that turned into nightclubs on the weekend, to haute cuisine. They care about results and whether you know what you’re doing. I aced every interview I walked into because I know food –the one exception was an interview for a bartending position where each candidate was asked to demo a drink they invented, and, well, I didn’t know what I was doing there! Total bomb, mega embarrassing, but a good experience looking back.

GP must never have worked in that industry, or they only worked that one job at Outback Steakhouse for a manager thinking they were changing the world. It’s a familiar mindset to those in tech…

Standard question.

If that's a red flag, the whole world is red.

Yes. After establishing work history, skills, availability and references one would be derelict in their duties to not establish the Philosophical Why before handing a kid the Sacred Mop.
Is there any way to "correctly" answer that question that isn't just made up bullshit, especially for a fast food restaurant?

I think it's hilarious being asked this question when I'm in early discussions with a company that reached out to me.

The team, the environment, the flexible hours, the pay.

Even for fast-food service jobs, there is always some differentiator.

People who can't answer this question are more likely to turn over. That's why it is asked.

Honestly. If your first reaction to a question like that is how to trick them, what subterfuge to use - you're the red flag! Not everything is a trick. You shouldn't try to fake aligned interests if they're not aligned.
(comment deleted)
"You are offering currency in exchange for labor. I can provide labor, and desire currency."
Ha! I remember having to "draw my thoughts" when applying for Whole Foods circa ~2004.
When I quit working at McDonald's, the manager said "well, some people don't have what it takes to work this job". i told him I had to quit because I was leaving to go to college.
"I am truly ecstatic about the unparalleled opportunity to become a part of the Hardee's family, a prospect that aligns seamlessly with my life's passion and professional aspirations.

From the moment I first savored the delectable aroma of your signature charbroiled burgers, I knew that my destiny was intertwined with your esteemed establishment. The synergistic blend of your brand's values and my personal ethos is a match made in culinary heaven, a union that promises to revolutionize the gastronomic landscape.

The prospect of contributing to Hardee's renowned legacy of taste innovation and unparalleled customer satisfaction resonates deeply with my quest for self-actualization in the fast-food industry.

Each meal served, every customer smile elicited—these are the very keystones that embolden my commitment to fulfilling my dream of championing a new era of succulent satisfaction. With utmost fervor, I implore you to consider my application, for it is not just a role I seek, but a calling I am destined to embrace with zest and zeal."

In retrospect: hiring managers having Ayn Rand books at work.
could you elaborate please? any interesting experience you made because of that?
I worked for a guy who had Atlas Shrugged on his bookshelf. I chuckled and thought okay.

I later went on a business trip with him and found out that 1) he was left of center and 2) a prior CEO was very much a Randist and sent the book to every SVP and up in the company.

"There are two novels that can change a bookish fourteen-year old's life: The Lord of the Rings and Atlas Shrugged. One is a childish fantasy that often engenders a lifelong obsession with its unbelievable heroes, leading to an emotionally stunted, socially crippled adulthood, unable to deal with the real world. The other, of course, involves orcs."
I was summoned to a nondescript industrial building, found my way upstairs and wound up in a grubby room posing as a lobby. I was seated on a low futon and had several discussions with my knees nearly level with my ears. The conversations were overly casual but with some oddly specific IT security questions. I seriously contemplated walking out of what was clearly an amateurish, shoestring operation.

Nope... I have worked there 20 years so far.

My first job was to evict the former sysadmin, and within the first 90 days I was relocating the whole company, building out the new IT infrastructure.

So in the spirit of the recent post about Charlie Munger killing a lot of pilots I would suggest not judging the company solely by its lobby. Make a list of real deal-breakers and consider overlooking the rest.

If you ever contemplate a career change, even if never, please consider writing.
Thanks! I consider writing well to be a differentiating skill, especially in IT.
Too late I already trained the model on your writing style
Is the futon still there? If not, work it into the story somehow, near the end.
I worked at a place that had a futon, but they got rid of it because if people slept on it, the company would get a reputation for being a sweatshop.
I should have spotted it but didn't: They took me out skiing one day between interviews (they were courting me pretty hard, and good snow was a selling point for the region) and I met the CEO for the first time on the slopes.

He wore a full motorcycle-style helmet with a mirrored face visor which he refused to open; it was like talking to a member of Daft Punk. It had fake hologram bullet-holes on it.

More importantly, he skied like an asshole: cutting people off, sudden stops or changes in direction without checking if anyone else was coming, cutting ahead in the lift line, stopping to readjust his gloves or whatever directly in the lift exit ramp, shouting at people who he felt were in his way -- just totally self-absorbed and borderline dangerous.

It turned out to match his management style 1000%.

My last CEO (healthcare startup) told me during my interview with them "but you don't look autistic!" and that should have been the end of the conversation there. When people show you who they are, believe them and all that.
....what was the lead up to that statement?

"I'm autistic"

"Oh, you don't seem autistic"

"Hi autistic, I'm dad. "

I've had that answer before... That was a fun but volatile place to work for a summer internship.

"Neither do you brother, could've fooled me"
So the story here is that the CEO's brother is Autistic, and was one of the major inspirations for the company. Being "out" about my disability, I thought it was really cool at the time and mentioned that I'm Autistic, and seeing her embrace her brother as part of the core mission of the company was inspiring.
Like in your other story, the response you got is actually pretty reasonable and you seem to be slightly out of step with what other people are thinking here.

The fashion for high functioning, highly articulate individuals calling themselves "autistic" is relatively new. To the vast majority of people the word autistic means severe disability that requires constant care, involves repetitive stimming motions and often is directly visible via an abnormal facial structure.

In this conventional usage of the term autistic people don't turn up to job interviews and say "Oh your brother is autistic, cool that it inspired you, I'm autistic too!" because they don't turn up to job interviews at all. Depending on how severe her brother's condition is she may well have been quietly offended that you were trying to pass yourself off as having a similar problem.

> The fashion for high functioning, highly articulate individuals calling themselves "autistic" is relatively new

It’s a spectrum, and you don’t know the struggles of the person you’re replying to. Just because someone can mask or play off as high functioning doesn’t mean it’s not a struggle, especially with people making flippant remarks like this - in fact one of the struggles that keep people from being continually employed is that accommodations aren’t taken seriously because people assume that a working mask means they’re trying to make up excuses. Your statement that the “vast majority of people” only equate it with only the most severe disability is based on… what? Almost everyone I know especially in tech have worked with someone on the spectrum.

So the specific framing, since it seems like this matters to you, was that she asked why I was interested in the healthcare space, and I said that I am autistic and have to interact with the American healthcare system, which is doubly hard for me specifically because I'm autistic: the myriad confusing systems you have to interact with just to get your basic healthcare needs in the US are difficult for me because of the number of interpersonal interactions required, and because I am "high functioning" (which, to your point, is a "relatively new label" [it's actually not, but that's not an argument I feel like having right now]) I'm very often not taken seriously when, for example, I have a sensory need during an MRI.

I said that I was appreciative that she wanted to make healthcare better for her brother, because it would help people like me too. And her response, after hearing my story about struggling to navigate the system she claims to want to improve on account of my very real, and sometimes very debilitating, disability, was "but you don't seem disabled." I don't think I'm in the wrong for being offended here. In my mind, It'd be very similar to if I had said that I struggled with the healthcare system due to losing a leg in an accident, and her response was "oh, but I can't see that your leg is missing because this is a zoom call."

The fact that I wasn't, at _that moment_, having a visible need, doesn't negate the existence of a disability that occasionally renders me mute, or makes me so overwhelmed I lash out at the people around me, or causes me actual physical pain. And mind you, I _was_ stimming; out of necessity many autistic folks who work in professional environments find stims that are relatively invisible on camera or in person in order to help us get through social interactions without losing our minds. It wasn't visible to her, but that doesn't change the reality of my story and my situation.

why aren't their positive traits that you see 99% of the time “who they really are”

just a question about the phrase, not this particular person

how does this give any predictive insight aside from you thinking they're hiding the rest of the time

In my experience, people who are dicks once in an environment where it was totally uncalled for are often hiding much more under the surface. It's like the old adage - one cockroach on the floor equals a hundred in the wall.
More people should do this! One time I advised people to out themselves in interviews--there are literal empirical reasons to do this--and I cannot describe how chewed out I got. Normalize neurodivergence!
THANK YOU. I make it a priority to introduce myself, and my disability, during my first 1:1 with every manager I have; it makes a huge difference. The conversation usually goes like:

- I am autistic

- I don't need any particular accommodations

- I will attempt to overcommunicate what I'm doing so that I can get your help if I rabbit hole on something (one of my common tendencies)

- I tend to need mental health days slightly more often than usual

- I will tell people I work with when I'm comfortable doing so, but this isn't a secret and don't feel bad if you accidentally out me.

I've never had a manager be anything but extremely appreciative to receive this context. Normalize talking about your needs, even if you don't have a diagnosed neurodivergence!

> mirrored face visor which he refused to open

> he skied like an asshole: cutting people off, sudden stops or changes

It sounds like Mr. Bean was mistaken as a CEO and was just rolling with it.

That's almost worth naming names, just to prevent anyone else from suffering a similar fate. Plus, I'm really curious who it was.
Ha! Sorry. This was decades ago, anyway. Right after the sort-of-botched IPO he drove off in his shiny new Ferrari never to be seen again (like, seriously, that exit is the last mention I can find of him online. He made out much better than the employees, I’ll tell you that much)
> He made out much better than the employees, I’ll tell you that much

They always do.

Before you started talking about how he skied like an asshole. I was thinking, you where being interviewed by The Stig lmao
I once was interviewing for an internship at a quant firm in Chicago (I was in my Sophomore year I think at UIUC) and my interview went pretty well up to the point of my second-last interview of the day.

Then, I sat down with the VP of engineering, and he opened the interview with "so, what do you think it is we do here?" And I naturally stuttered through a canned answer about how they use arbitrage opportunities in the market to profit off of mis-priced securities, etc. Then he asked me, "but what benefit do we provide? Why is working here good for society?"

I blanked, and didn't answer for about 15 seconds. Then, I tried to start piecing together an answer until he stopped me, told me he had found my Facebook, and wasn't appreciative of my politics (I was moderately lefty in high school, significantly more so now; maybe this conversation is part of why). He had _printouts_ of some posts I had made criticizing George W. Bush, talking about why I thought we should be raising taxes on higher earners, supporting Obamacare, etc. He told me that he didn't think I had the "cojones to stomach the job" (direct quote), and told the recruiter not to bother with the last interview and that I had failed.

I _sobbed_ on the train home; I think it was the worst I had ever felt about an interview in my entire life, and yet looking back at it, I think this was the best possible outcome. Imagine if I had worked for this asshole.

I've worked for companies I don't personally agree with in the past; it's part of living in a society(TM). I am able to hold my nose to a certain extent to make an income for my family (heck, I am currently having to cross picket lines to come to work, which makes me feel icky). But I can't fathom what hell I would have been living under had I gotten and taken that job.

Which firm was this?
I don't remember at this point to be honest, this was like...10 years ago? But this moment is seared in my mind.
I'm curious what the answer was. I've read plenty about how the boutique finance sector is basically a parasite that only benefits a small cohort of already wealthy individuals, would like to hear what the other side has to say.
Right? Like, I tried really hard to prepare a very neutral answer focusing on taking advantage of arbitrage and fixing over- or under-priced securities, which I think is the closest thing to a benefit you could come up with. And that apparently wasn't good enough for this guy.
He was checking if you understand what the actual benefits of trading firms are to the wider market participants. I've never worked in trading and even I know the answer to that: he was looking for a discussion of the value of liquidity and price discovery.

Sounds like you gave an answer that didn't mention that at all, and may have presented the firm as merely taking advantage of other people's mistakes to make profit. Clearly that's not how he saw it, and the VP correctly guessed from your social media that you may not actually have understood the part of the finance industry that you were applying to work for. The question was to check whether you'd actually be enthusiastic about the work you were doing and you did indeed fail it.

This would be like if you turned up at Google and an interviewer said, "What do we do here" and you said "exploit data to profit from people's ignorance" and when they gave you a second chance you couldn't answer.

Frankly you can't get a job at most firms if you can't explain why you think the company should exist.

The answer I get from people working at market makers I’ve talked to is that they provide liquidity (so you can buy or sell a security immediately rather than waiting minutes or hours?) and decrease volatility.

An example is onions futures; see https://en.m.wikipedia.org/wiki/Onion_Futures_Act and check the onions price history: https://fred.stlouisfed.org/series/WPU01130216/ compared to a commodity where futures trading in common, like corn: https://fred.stlouisfed.org/series/PMAIZMTUSDM where there are price swings but the volatility and frequency of the swings is lower.

I’m a layperson, not involved in finance, but this is the value add I most commonly hear about.

Likewise, this is the answer I generally hear from those folks. IME it's still begging the question - the increased liquidity is still overwhelmingly only meaningful to those already-ultra-rich, unless you subscribe to trickle-down Economics.
This does not sound as value for the society but advantage for the tradesman.
One set of markers of a "good" industry or organization is whether they pay for all the harm they create in society and whether their profits are equal to or below the value they create for society.

For instance, the oil/car industry pays for basically none of the large negative externalities they create. In this case, I hazard that futures industry captures more value than they create. And that value is extracted from other players in the vertical chain, particularly farmers.

futures contracts work somewhat well for farmers. There's a level of certainty provided and they are reducing their risk so that a low price at the end of the season doesn't ruin them (however they also don't profit from a higher price). As a farmer i would likely prefer to sell a certain percentage of my goods with a futures contract so that i can have less risk of financial ruin.
The relationship between futures traders and farmers is pretty much identical to that between any kind of insurance company and its customers - it's a risk arbitrage transaction where the client (farmers in this case) are sacrificing profit in expectation for a flatter outcome curve which in a properly priced market yields higher utility in expectation, since utility as a function of profit is concave for an individual farmer and much closer to linear for a well-capitalized market maker.
I understand the mathematics. The problem is that there is a practical asymmetry of information. Large future traders can invest a lot of resources into getting a much better prediction of future prices, while individual farmers cannot. In such scenarios, it is inevitable that farmers will be exploited by future traders into making bad deals.
You might try examining -- with an open mindset -- a few CFTC Commitments of Traders reports and then see if you feel the same way.
This reasoning seems suspicious. Why would farmers choose to use futures markets if it doesn't benefit them?
That's the benefit they give to their _customer_, which is not the same as a benefit to _society_.
In contrast to the parent post:

When I was an undergrad, I interviewed at a then-very small, now-very-prestigious quant firm. In the last interview or so, I asked the quant head something like, “but what value do you provide to society?”

He said, “we provide liquidity.”

I turned down the job they later offered and went to work at a software company that sells a thing people buy.

I took a look at the two graphs.

I would prefer the price of onions - seems like the price is a lot more stable other than a few points out of the year where it is very high. For those times, I could choose to have a small store of onions or go without.

For the price of corn, if the price is high, chances are it will be high for a while, so I'll have to go without for a while...

What do other people think?

I wonder too. Some things are really non-intuitive.

I really enjoyed "The Rational Optimist" where it explains things like trade, which tends to make everyone wealthy, while generally the people trading think they are both getting the better end of the deal.

I think the value add of the speculative markets is (in theory) that people make predictions of what will be valuable -- if they're right they earn and if not they lose out. In effect, it's market research expressed as bets. That information can have utility but my opinion is that our current setup probably over rewards this sort of work.
I have a friend in a similar business who was honest enough to admit that his impact on society was "likely negative, at best neutral," but it was a comfortable living.
Should have been honest and said "You contribute nothing to society"
I'm sure they already know that, indeed that they actually contribute negatively, which is why you need to be able to 'stomach the job'.
"You're just taking up space."
What a loser. I probably align more with him than you politically, but I don't go around berating internship candidates about it, it's no way for an adult to behave whatever your politics.

Whenever I have shitty experience like that I always think of the James Bond movie Quantum of Solace, there's some part where somebody doesn't deliver and the bad guy loses out, and upon being told he lost something valuable, he says "not as valuable as knowing who to trust". Like you say, it was a bad experience but actually the best possible information you could have gotten.

I asked this exact question ("what is the net benefit of currency arbitrage") and nobody has been able to articulate is.

Stock markets, I can see- they existed and exist to share risk and profit. But shorting and arbitrage, it's much harder for me to understand those.

(and yes, that VP was a sociopath)

Re: shorting. If people who believe a company is undervalued are allowed to trade based on that belief then people who believe a company is overvalued should be allowed to do the same.
Are shorting and longing symmetric? IE, do they influence the market in the same way? They seem much more complicated than straightforward stock purchase and fractional ownership.
Don't know enough to say but I would guess so.
In the generic case:

Longing == buying a share

Shorting == selling a share

I'd add to that and say shorting is typically selling a share that you don't own. Which means you need to borrow it from a broker for a fee. There's a securities lending market which revolves around borrowing and lending shares for these reasons.
Yes, they're symmetric. Shorting is logistically a bit more complex than going long, but that's not an argument against it. After all, buying stocks is itself more complicated than buying land, and buying land is more complicated than renting, etc.
1/ both shorting and arbitrage can and will happen as soon as you let people more or less freely buy and sell things

2/ people do it for their own (expected) personal profit

3/ at the market level, these transactions contribute to price discovery

You could imagine banning currency arbitrage, but then you’d have to at the same time enforce somehow consistent prices on all markets (I.e. literally do the same thing as arbitragers do)

In theory you're making the markets more efficient.

Someone outside of finance exchanging one forex for another could get a more fair rate if their exchange is more efficient due to increased liquidity.

But by the same token, the other side of that trade is getting a less favourable (but still more "fair") rate

Price discovery was brought up, but think about it this way - if Good A is plentiful in Market A and scarce in Market B - prices will be very high in B but cheap in A.

Robber Baron Capitalist comes in and says "hey wait a minute, there's money to be made!"

He starts buying goods in A, then selling them in B.

This is a very, very stupid idea, your 5 year old could have it. So that means as soon as Business A figures it out, B , D, E, and F aren't far behind.

The net for people in Market B is that now they don't pay the previous scarce price, but something closer to Market As, and more people can afford the good. This means that someone does all the work of building out all that logistics for us, simply to exploit the price differential.

I feel like this question fundamentally demonstrates a lack of understanding of what arbitrage actually is. The obvious answer is: Because water seeks its own level.

If there is an imbalance in the market, someone will balance it. That's how it works. Let's say you have two different securities, that both represent the same underlying aspect of the economy. This happens all the time; there are multiple ETFs that represent the same basket of stocks, there are options and futures on those ETFs, including different types of futures that represent the same ETF but at different levels of leverage, there are options on those futures, and so on. All of this exists because there is no reason for them not to—people believe they can make money, reduce risk, or whatever by using these derivative instruments, and maybe they can.

But all of these stocks, funds, and derivatives are valued by one thing, and one thing only: their price on the open market. So, what happens when one of these funds get out of whack with the value of its derivatives, or even the underlying stocks themselves? Remember how we had multiple securities representing the same underlying aspect of the economy? Well, one is now worth more than the other, despite the fact that they represent the same thing. There's an imbalance, and if it gets too far out of balance, people are going to realize, wait, I can just buy 500 shares of SPY and short one ES contract, and that's free money! And that's entirely correct, you can. But the result of doing so is a minor market correction; the price of SPY goes up and the price of ES goes down, and boom, we're back in equilibrium.

So, arbitrage is a necessary and unavoidable aspect of the stock market. You can't have a stock market without arbitrage, because the stock market reflects so many different facets and ways to trade ownership and value of companies. Arbitrage is, in essence, the means by which information flows between various aspects of the market, and it connects them together so they effectively move in lockstep. It is nothing less than the market leveling itself, just as water poured into one side of a swimming pool fills every part of the pool.

> what is the net benefit of currency arbitrage

It means you can actually ask the question "how many dollars is a pound worth" and get a meaningful answer.

If arbitrage wasn't possible for some reason, and it's a natural phenomenon so that would have to involve pretty horrific levels of state-backed control, then the answer would be:

"It's $X in London and heading down, was $Y in New York yesterday and heading up, and $Z in Chicago but you probably can't get an account there because it takes ages and requires special paperwork, and <thousands of additional prices>"

You would then spend the rest of the afternoon attempting to figure out how the hell to do a basic international trade or FX transaction and by the time you'd finished reviewing the prices they'd have all changed again.

Arbitrageurs seek out and correct fixable price disparities, thus enabling you to talk about one global price for a particular type of trade. This has tremendous value for everyone.

Wow, that's a clear abuse of power and position against someone interviewing.
I’d genuinely ask why the fuck he waited for all these rounds to complete if political cojones scan was mandatory for the job. These last Big Men in Power never fail to deliver the most irrational nonsense you’ve never even thought about.
As long as you're not some violent extremist/racist who the hell cares which way do you lean politically? o.O I never once asked a workmate who they vote for. Nor will I.
That's like the devil telling you he won't buy your soul because there's too much light in it.
That guys sounds like a borderline sociopath. What a terrible way to treat someone.
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This comment has a lot of support (and indeed was a shitty interview experience) but the one mentioning the interviewer asking if they voted for Trump due being born in a red state it's crickets. It's ok to be shitty, as long as you do it in a politically correct context.
After a 1-hour presentation, "come back tomorrow and we'll tell you the details of the job."

Nope.

"You need to send us a handwritten page that we'll send to a graphologer in Switzerland. Nobody is hired without a graphological report."

I did that, got hired, and wouldn't comply again. First job after university.

Nothing bad happened. Years later I could read the report, and it was nothing remarkable.

I had never heard of a"graphological report" so I looked it up. It's so much worse than I would have guessed! Any of those personality tests are such a major red flag.

"Graphology is the analysis of handwriting with attempt to determine someone's personality traits."

To me the aptitude tests are red flags. Once had a successfull technical round plus agreement on work conditions and compensation when the last step was completing an aptitude test. Two parts (had a chance for a single practice round). One was finance related calculations (this was a developer job for a CAD application) mixed with logic and pattern completion tests, with less than adequate time to complete - yet both progress and accuracy was judged without specifics how. The second part was 'which one do you find more important' kind of personality test with all important answers of independent matters (all three are important in their own place), all without a context that would require different choices, expecting universal answers, and again, not enough time but rushing through without deliberation or contemplation of the right answer. I was asking how will they use the results and they said something like 'to determine abilities, suitability for advancements and future roles in the company'. All after position related technical interviews succeeded. I chose not to be judged this way now and in the future, in case they take it dead seriously. If not, then opt out because of that, being unnecessary. Since they told it is mandatory and everyone (10k+ employee) have to be judged the very same way and repeatedly throughout the course of employment with bleeding heart (interesting task, same wavelength with technical manager, remote work in 2019, good enogh salary, being without income for 3 months already) I said no (after rounds of emails with HR trying to negotiate this away). I am afraid of an organization with this level of robotic stubbornness about vaguely relevant attempt of measuring a persons whole personality and future at the company in 30 minute automated tests with unveryfiable methodology.
They may has well have done a tarot reading. OTSH, it could just be a mostly harmless eccentricity of the CEO.
Used to work with a guy who moved from Israel and he mentioned that the handwriting analysis is a routine part of the hiring process there.
So apart from that Canonical isn't actually that bad?
I interviewed at a very small company in Santa Monica in the late 80s, and they also had all of their applicants submit a handwriting sample for analysis. They claimed that it was a very reliable indication of something-or-other.

I went ahead and filled it out while I was there, but I'd already decided not to move forward by the time the interview was over.

Circa 2000, I was invited for a lunch interview.

I walk into a completely dark and empty cubicle space, one lit office in the back.

Lunch meant the interviewer ate a Hot Pocket off a paper plate as we talked.

Didn’t even offer me any.

First interview I walked out of.

>Didn’t even offer me any.

I hope that middle bite was frozen.

Ha I've had more than one of these (nothing this bad, but still). Turns out for a lot of recruiters "lunch interview" means interview that is scheduled during lunch, not interview in which lunch is provided.
And here I was thinking a lunch interview would evaluate your masticative abilities...
I had a day of interviews once, and I remember the person who interviewed me during lunchtime. Wvery time I would get a fork near my mouth I would have to put it down and answer a question.

I remember dumping a full lunch in the trash can as we walked out towards a conference room for the next interviewer I would meet...

She cited herself as a reference and her last three employers were all clearly made up. Another coworker hired her anyways, because of her appearance. It didn't end well.
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as a CS undergrad i interviewed at PwC or a similar firm one day. The lady hands me one of their 2 page publications on IT and asks me to write a summary. She gets back and I explain that the publication makes no sense and is full of inaccurate bullshit. Needless to say I didn’t go work there.
This isn't quite what they asked about, but much of my work has been freelance contracts from the internet. One of the biggest red flags for a project description is when they mention that the project is "very simple" or "easy for someone who knows what they are doing". That just means they are dirt cheap and looking to rationalize the way they squeeze contractors.

Another red flag is that it's a freelancing site.

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I had an interview for a large well-known bank software internship maybe 15 years ago. One interview was a role-play in which I was attending a meeting in lieu of my boss with someone from another division of the bank to discuss a behind-schedule project.

Role-play starts and this guy storms in, slams the door and starts shouting about how the software department are useless and how are we going to proceed. At one point he yelled that without his department we wouldn't have money to keep the lights on.

In retrospect, I'm sure this was a lot of fun for him and it might have been a good filter but I also am more than happy that I did not proceed to the next round if this is what they wanted to show me about their culture.

This makes me think of those interviews where the code the candidate figures out is integrated into the product.

Wonder if your responses helped them practice for real meetings. :)

Once I applied to a slightly sketchy indeed posting. The company was named something incredibly generic like WorldProgrammers or GlobalDevs. Within 60 seconds of posting my application, I got a phone call from a very pushy guy with a thick Indian accent, requesting that I fill out a separate application over email. When I didn't immediately respond (because I was at work), I got a series of calls from the 'manager' over and over until I blocked the number.

The listing was on the edge of too good to be true, and the immediate and desperate attempts to reel me in were a huge red flag.

I withdrew my application, did everything I could to block them, and reported the listing to indeed.

I have no idea what the scam was, but I'm absolutely convinced it was a scam. It was honestly pretty scary, and I'm sure that a slightly less vigilant person would get pulled in.

The scam is that these bottom-of-the-barrel recruiters’ contracts pay out based on providing a certain number of “qualified resumes”, not for actually filling the position. They’re basically doing lead generation, not real recruiting.

After a while you can tell which positions these are by how they are worded and how the recruiters associated with them talk and behave during the call.