When qualified applicants are scarce, recruiting becomes extremely competitive, particularly when two companies go after the same candidate, as often happens in the case of searching for professionals

Subject:ManagementPrice:5.87 Bought7

Share With

When qualified applicants are scarce, recruiting becomes extremely competitive, particularly when two companies go after the same candidate, as often happens in the case of searching for professionals.  

After interviewing three shortlisted candidates, a high-tech company, Company X, made an offer to one and advised the other two candidates that they were unsuccessful.  He successful candidate was given one week to consider the offer.  The candidate asked for a week’s extension to consider the offer but was granted only an additional 3 days.  

At the end of the time period, the candidate verbally accepted the offer and was sent a contract to sign. Rather than returning the signed contract, the candidate informed Company X that he had accepted a position at Company Y.  He had received the second offer after verbally accepting the first position at Company X.  The second company knew that the candidate had verbally accepted Company X’s offer.

Before accepting Company’s offer, the candidate had consulted a respected mentor who advised him to ignore his verbal commitment to Company X and to accept Company Y’s offer.  There were no substantial differences in the salaries being offered by each company or in the work that each would expect the candidate to perform.  The candidate simply saw Company Y as the more prestigious of the two employers.

Case Questions:

1. Did the candidate act in an appropriate manner? 
2. What should the candidate have done? 
3. Did Company Y act ethically, knowing that the candidate had verbally accepted another offer? 
4. Does a verbal acceptance constitute a legal and binding contract? 
5. Should Company X take any action to enforce the verbal commitment? Should it take any legal action against the candidate or Company Y? Why or why not? 
6. Describe what Company X should have done to maintain the candidate’s interest in the position.