Should I quit Microsoft after a week to join Facebook?

On May 6, 2019

In the May 7, 2019 Ask The Headhunter Newsletter a reader juggles job offers between Facebook and Microsoft.

Question

I accepted a position at Microsoft and started the job. Within a week I got an offer from Facebook. The pay at Facebook is far better. What should I do?

Nick’s Reply

This is not a bad problem to have. Congratulations on getting two offers, even if this seems to put you in a quandary.

A common concern in a situation like this is about leaving a new job so quickly. Don’t worry too much about it. Sometimes employers make a new hire walk the plank early or even before they start the job — it’s a business decision. We discussed a related issue last week in Should I keep interviewing after I accepted a job offer? and we’ve considered the problem of employers rescinding job offers.

But I’ll caution you not to worry so much about the money. Your long-term career success and income are more likely to hinge on the people you work with and on other factors including product quality and the company’s prospects. (See It’s the people, Stupid.)

Microsoft vs. Facebook: The people

I’m not privy to Facebook’s or Microsoft’s hiring practices, so I can’t advise you on how either company might react if you follow my suggestions. But before you accept Facebook’s offer, ask for some additional meetings with three classes of its employees:

  • People on the team you’d be a part of.
  • People upstream from your work flow. For example, if you will work in software development, ask to meet with the appropriate product design team. These are the people who will hand off projects to you. Are they good at their work?
  • People downstream from your work flow. For example, quality assurance people who will review and test what you build. Their skills and practices will impact you a lot.

Assessing these three groups will help you see how successful you are likely to be, because all of them will directly affect the quality and success of your own work. Of course, the company’s sales, finance and other departments will affect you, too. Decide which operations you want to know more about before you throw your lot in with any company.

Due diligence

If Facebook balks at letting you have these meetings, why would you want to work there? You’re about to invest your life. They should be glad you’re willing to invest an extra day’s time to meet your future co-workers and to see how they operate!

Of course, you should have done this before accepting the job at Microsoft, too. Maybe you ought to quickly spend some time with those three groups at Microsoft, too, before you decide what to do. It’ll give you something to compare to your findings at Facebook.

This kind of investigation prior to accepting a job offer is called due diligence. There are all kinds of due diligence. There’s a section about this in Fearless Job Hunting, Book 8: Play Hardball With Employers, — “Due Diligence: Don’t take a job without it,” pp. 23-25.

Decision factors

Money, people, and many other factors should play a role in this decision. I won’t argue you shouldn’t move for more money, as long as other important factors are to your satisfaction. While I think loyalty is a good thing, don’t let anyone tell you that you “owe” an employer two years on the job you just accepted before you move on to a better opportunity. There is little meaningful difference between leaving a job after two years or two days if the reasons are compelling. “Juggling job offers” (pp. 15-17) may also be helpful, in Fearless Job Hunting, Book 9: Be The Master of Job Offers.

I’ve offered a few factors to consider before making your decision, but there are many more. I’d like to ask our community to suggest what else you might consider and what you might do to help ensure you make the best choice.

How would you decide whether to make a move like this? Would you jump from one employer to another after just a few days? Is there anything wrong with that? What factors should this reader consider before making the leap?

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Should I keep interviewing after I accepted a job offer?

On April 29, 2019

In the April 30, 2019 Ask The Headhunter Newsletter a reader questions a CEO’s advice about interviewing.

Question

interviewingI just read an article where a CEO warns that it’s unethical and dishonest to keep interviewing after you’ve accepted a job offer. “It’s not cool.” He calls it lying and says you’re just damaging yourself! Moreover, you’re causing damage to the company because it stopped recruiting after it hired you, and having to restart recruiting will cost it a lot of time and money. So you should behave with “class and grace.” Then he drops the bomb: It’s “all Millennials” doing this — ghosting employers. (I’m 29 years old so I guess he’s talking to me.) Is it so wrong to keep interviewing or to take a better offer if it comes along?

Nick’s Reply

You should absolutely continue interviewing with no qualms whatsoever.

I think that CEO is 100% wrong when he suggests that if you continue to interview for other jobs after you have already accepted an offer, you’re being “unethical,” “dishonest,” or “damaging yourself.” That’s nonsense. Hedging your bets is simply prudent business.

Interviewing? Hedge your bets.

As for the CEO’s contention that the company stopped recruiting after it “hired” you, that’s pure bunk. I started headhunting a long time ago and I can tell you that a Human Resources department (HR) will probably routinely continue interviewing more candidates not only after it makes you an offer, but after you accept it, and — often — after you’ve started the job.

Why would HR do that? To hedge its bets.

For example:

  • HR might give you that verbal offer, then run a background check and decide it doesn’t like what it found — even if it’s a minor problem that it never discloses to you. The offer you accepted is rescinded without explanation. (Don’t believe me? See Behind the scenes of a rescinded job offer.)
  • While HR obtains the necessary signatures to complete the hiring process, some manager might change their mind about you, or funding for the job could be cut. (I’ve seen both happen many times.) There will be no written offer. Or, your written offer will be cancelled. Because employment is “at will” in most U.S. states, you can be terminated at any time, for any reason or no reason — including on day #1. Now you’re on the street. “It’s not personal.” (See Protect yourself from exploding job offers.)
  • HR worries that you might change your mind — just like it might change its mind — and wants to have one or more backup candidates. You’ve probably already experienced this, when an employer tells you you’re a finalist and that it will “get back to you” in a week — then they keep delaying. They may be “keeping you warm” until they are sure their #1 candidate actually shows up for work. (That means you may still get the job.) Some employers will even issue multiple offers to ensure they get one viable hire. You’ll never know.
  • HR believes it might find a better candidate while your offer and hire are being processed — because it’s got several more impressive resumes to work through but is trying to stick to a deadline. HR will have no qualms about telling you “something has changed and we will not be able to proceed.” Meanwhile, you may have already resigned your old job. (See Quit, Fired, Downsized: Leave on your own terms.) HR will tell you, “It’s nothing personal, just business.” Unless you’re willing to hire a lawyer, you probably have no recourse.

Interviewing: The double standard

More obviously — and I’m sure you’ve encountered this many times — while that CEO calls you “dishonest,” his HR office will leave a job posting up long after the job is filled. It’s “ethical” when he’s hedging, but you’re “lying.” It’s a double standard that employers use to gain an edge.

When you continue interviewing after accepting an offer — even if it’s in writing — you’re being prudent, not dishonest or unethical. Unless you sign an agreement to the contrary, what you’re doing while you wait to start the job is no one’s business but yours.

Should you be cavalier about it? Of course not. Act as responsibly as possible. But play your cards close, keep your options open, and continue to develop your alternatives. Always hedge your bets — just like the employer is doing.

Is this business or is it ghosting?

As for the CEO’s suggestion that if you back out, the employer will have to restart its search, costing time and money, that’s true only if they’re inept. What company doesn’t plan for contingencies in the event a deal goes south?

Any good headhunter can share stories about “fall offs” — people who accept jobs then quickly quit or get terminated for any of a number of reasons. Every good headhunter (and employer) has a backup candidate ready to fill that job. It’s not unethical. It’s prudent business.

Worried about being accused of “ghosting?” The employer should be worried about its own ghosting behavior — every time it interviews a candidate, promises a decision, but then ignores you completely. See Ghosting: Job candidates turn tables on employers.

Anything can go wrong

I understand that CEO’s perspective. It’s self-serving, and there’s nothing wrong with that. But if you, as a job seeker, take his advice at face value, you’re not serving yourself best in a highly competitive hiring market where too many employers demonstrate an astonishing and callous disregard for job seekers. Let the CEO think like an employer. You should think like a job seeker.

Just like an employer keeps other candidates on the hook until a new hire actually shows up for work, you’d be wise to keep working on other job opportunities until you are firmly ensconced in your new job. You are absolutely right. Anything can go wrong. And that’s why the company that “hired” you is likely to continue recruiting and interviewing other candidates while your “hire” is being processed. (Many readers have complained about companies that make job offers then withdraw them. In that case, the company doesn’t “fire” them — because they’re not yet employees!)

Who’s not cool?

Now I’ll tell you what really troubles me: That CEO is “not cool” when he makes generalizations and reveals blatant bias against your cohort. Millennials are no more likely to ghost employers than CEOs are likely to pontificate about right and wrong like sanctimonious jerks.

You can behave with class and integrity — and still protect yourself. Keep interviewing if you want to, until you’re actually on the payroll at your new job. It’s good business. I’ve seen countless people stranded without jobs because they didn’t understand that employers hedge their bets during the hiring process every day.

Knowing what to do when you get a job offer is just one of many ways to have an insider’s edge when job hunting. For more tips, see Ask The Headhunter Secrets in a Nutshell.

Is it unethical or dishonest — or not cool — to continue your job search after you’ve accepted a job offer? Should you trust that you can take a job offer to the bank? And even if the job offer is bona fide, is that any reason not to hedge your bets to ensure you get the best deal possible?

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Should I move for a 30% salary increase?

On March 18, 2019
Should I move for a 30% salary increase?

In the March 19, 2019 Ask The Headhunter Newsletter a reader asks whether a big salary increase is enough reason to accept a job offer.

Question

A rival company has offered me a job with a 30% salary increase. I know there are other things to consider, but it’s such a big pay bump that I think it may be sufficient reason to move. Should I accept it?

Nick’s Reply

salary increaseOnly if money is your prime motivator. If it is, go for it. Of course, without any other information, I can’t really give you very thoughtful advice. But in general, this is a scenario that people sometimes face, so let’s deal with it generally.

No matter how big it is, I look at three things when a job candidate receives an offer, in addition to the money. If I were you, I’d compare the new company to your current employer on these factors, in this order of importance:

  1. The people
  2. The products
  3. The company’s reputation
  4. The company’s prospects
  5. The company’s finances

Whose are better? Try to put a value on each of those factors, then include them in your analysis.

It’s the people, Stupid

I’d give the most weight to the people you’ll be working with. Are they smart? Highly skilled? Dedicated to their work and the company? Do they demonstrate high integrity? Are they a tight-knit group that works well together? Do they mentor and help one another?

This matters especially with regard to the company’s management, of course.

Even if the company doesn’t score tops on the other four factors, a great team can compensate and drive the company to success. On the other hand, if the people aren’t great, it doesn’t matter how good the products, reputation, future prospects are finances are. That old saw is true: It’s the people, Stupid. You’re (hopefully) going to be living with them a long time.

What the world sees

The next three factors are intertwined. A company’s products, and new products it’s got coming down the pipeline, affect its reputation and future prospects.

Pay close attention not only to how the company’s customers regard the company, but also to how it is viewed by the business community, the business media, its competitors and its market.

You may have found a good job and great money, but the financial gain from that big salary bump may be very short-lived if those other factors aren’t strong.

Is the business sound financially?

Few job hunters consider the financial aspects of a job beyond the pay. That’s foolish. I’ve never accepted a job without first meeting with the Chief Financial Officer. I want to know about receivables and payables, sources of funding for operations and growth, and — if it is publicly traded — how the company’s stock has performed. Believe it or not, I worry more about whether a company is responsive to its employees than I am about how it responds to its investors — but how investors judge a company matters greatly. I also want to know how the company treats its vendors — does it pay them on time?

If a company isn’t sound financially, you’re probably not going to have that job very long, no matter what it pays.

Is it all real?

I’ve seen people move for money or other factors, only to regret it after they realized the image they had of the new company didn’t match the reality. It’s common for an employer to present a great image to job applicants. But it’s up to you to look under the hood of this machine!

Due diligence

Here’s my advice. Once you have a bona fide job offer, tell the company you’d like to come in for a day to shadow your new boss and the team you’d be working on. This is proper due diligence. (See How can I find the truth about a company?)

Ask to meet people upstream and downstream from your job. That is, other employees whose work product will affect your ability to do your work successfully, and employees whose work on what you produce will impact your success. For example, if you work in engineering, you need to know who is conceiving the products you will have to design and whether the sales team is competent to actually get customers to buy them.

Follow the money

Ask to meet the head of the finance department. That’s right — you may know nothing about finance, but you should have this meeting anyway. Check my comments above for some ideas about what to ask in that meeting. Even if the company is privately held, the finance officer should acknowledge your interest in your new employer’s financial state and philosophy. (The first time I did this, the V.P. of Finance was pleasantly surprised to see that a new employee cared about the finances — he loved it. Throughout my time at the company, I had a friend in a high place!)

Interview the company

When the company is done interviewing you and makes a commitment by extending a written offer, that’s the time to seriously interview the company.

A section of this article suggests how to check several key factors about an offer: 13 lies employers tell about job offers.

There’s a section about Due Diligence in one of my Fearless Job Hunting books that you may find helpful, too: Ask The Headhunter Store.

It’ll cost you about a day to do these meetings, but it may save you a lot of heartache. If the company declines to let you come back in, I’d refuse the job offer, no matter how great the money is.

A company that welcomes your interest in learning more before you make a commitment reveals something you can’t learn in a normal job interview — that it really respects its employees. The added bonus is that all the people you talk to during this extra day of meetings — if you take the job — will take you all the more seriously as a co-worker.

I wish you the best.

What factors do you consider when evaluating a job offer? Is a big raise ever enough reason to change employers? (This is not a loaded question: It actually might be.) What other factors would you add to my list above?

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6 signals to reject an employer recruiting you

On February 18, 2019

In the February 19, 2019 Ask The Headhunter Newsletter something tells a reader it’s time to reject an employer’s recruiting come-on.

Question

recruiting

After multiple interviews with managers and team members, a well-known company made me a job offer that I refused. The offer was good, considerably more than I earn now. But the deal was unacceptable because, from one meeting to the next, the team showed me the company is undisciplined, disorganized and incapable of conducting business with someone they want to hire. And they recruited me! I didn’t go to them looking for a job! This of course tells me they are not worth doing business with, period. I’m writing to you because I’ve concluded that I should have cut the meetings off sooner. I was so focused on performing at my best that I didn’t calculate the problems that now appear so obvious to me. Can you poll your readers and ask them what signals during interviews tip them off that a company is not worth working for, much less continuing interviews?

Nick’s Reply

I’ve been saving a story I read recently about just this problem — employers that aren’t worth interviewing with. Don’t feel bad, because in the throes of the evaluation process, a candidate is understandably trying so hard to impress that he or she dismisses signals that suggest it’s time to walk away. Nonetheless, there are indeed signals you should be looking for early in the process. You should not wait until after you’ve invested many hours and loads of effort to calculate whether an employer is worth it!

6 signals tell you to reject an employer

San Francisco recruiter Ken Hansell posted this story on LinkedIn, from a job candidate who rejected a job offer and declined to negotiate further. Like you, this candidate probably waited too long to tell the employer to take a hike.

I declined the offer… I’m staying where I am.

The recruiter called me and asked why? This is one of the top companies. What’s the counter offer?

Me: No counter offer.

  1. I had 6 rounds of interviews.
  2. I was grilled with questions but nobody took the time to explain what the job is like and did not even ask if I have any questions.
  3. Lots of questions did not make sense – like why I am leaving my employer. I was not, your recruiter approached me and convinced me to come for your interview. Where I see myself in 5 years. They could not tell me where they see their company in 6 months.
  4. The hiring process is too long, too disorganized.
  5. The offer took too long.
  6. The interviewers did not compare notes because during the 6 rounds of interviews they were asking the same questions. This should not look like an interrogation. They also looked tired and stressed.

If you want to hire talent, fix your basics. Treat candidates as people, not as applicants.

This job candidate has outlined six clear signals that they were interviewing with a wrong company, that is, one not worthy of consideration. All these signs are important, but the third one is key:

The interviewers behaved as if the candidate is chasing the company when,
in fact, the company is recruiting the candidate.

Who’s recruiting whom?

This critical distinction is lost on most people. Applying for jobs you’re pursuing is one thing. But when a company finds you, pursues you, solicits you, and convinces you to come talk about a job — then the calculus changes entirely. (See Reductionist Recruiting: A short history of why you can’t get hired.)

As you and the candidate in the LinkedIn story both noted, you were not looking for a job, so asking you why you wanted to leave your old job is not just presumptuous and rude — it reveals a totally misguided approach to hiring.

When you are recruited, an employer should do three things:

  • Roll out the red carpet.
  • Present compelling evidence about why you should listen to its pitch.
  • Work very hard to impress you.

When you are recruited, an employer that fails to treat you as an honored guest reveals a profound ignorance of how the world works. That’s simply disrespectful. It’s the sign of an uncouth, uncultured, stupid organization that’s bound to fail — one you’d be wasting your time with. (See Stupid Recruiters: How employers waste your time.)

Blind recruiting is spam

I’ll repeat that: When a company — whether its manager, its recruiter or its headhunter — comes to you and suggests it is interested in you, it should treat you with special respect and deference.

  • It must not ask you to fill out job applications.
  • It must accommodate your schedule for a meeting.
  • It must send the hiring manager to court you from the start — not some personnel jockey whose job is to check your teeth prior to your meeting with that hiring manager.
  • It must treat you as an object of desire.
  • It must show it knows exactly why it wants to meet you.

Blind solicitations are not recruiting; they’re spam. The trouble is, most people don’t understand this. They allow companies that recruit them to treat them like beggars. Don’t. You’ll save a lot of time if you separate employers you pursue from those that come to you. This is not to say all employers should not treat you respectfully. But when a company or recruiter solicits you, expect to be treated as an object of desire — or walk away if you’re made to feel like somebody who applied for a job.

What the 6 signals really tell you

The six signals above tell you that an employer is wasting your time. Here’s why.

  1. It should not take six interviews to assess you. Two, perhaps three. An employer that needs more has no idea how to properly assess a job candidate.
  2. A company should not interrogate you. It should open its own kimono first, to prove there’s a wonderful, desirable opportunity in there for you. (If this idea seems foreign to you, you’re either brainwashed or you work in HR.)
  3. The interviewers should not test your motivations. They should justify theirs to you.
  4. An interview process should be a carefully tailored production — a compelling pitch designed to impress you favorably. If the employer uses interviews to test you, then it has no business inviting you in to talk because it clearly has no idea whether you’re a good candidate. Listen up, employers and HR managers and recruiters: If you have not researched a person in enough detail already to confirm they are a viable candidate, you have no business contacting them. Interviews are not for selecting candidates. They’re for selecting hires.
  5. An employer should make an offer almost immediately after interviews are done. Hesitation reveals doubt, and doubt reveals poor judgment, and that’s the mark of failure.
  6. Those job interview meetings are the employer’s show. If the employer comes off looking bad, it means it’s not prepared, which means it’s not worth working for.

The job candidate in the LinkedIn story didn’t even consider negotiating the job offer because the employer signaled six different ways why it’s not worth working for at any salary.

Know when to reject an employer

The best way to land a great job is to focus your available time on employers worth interviewing with and worth working for. (Yes, some employers do it right. See Smart Hiring: A manager who respects applicants (Part 1).) That’s why it’s critical to know who’s going to waste your time. Those six signals are crystal clear. But they’re not the only signals that should give any job candidate pause — or perhaps make them head for the door immediately.

What additional signals from recruiters and employers tell you the “opportunity” they’re dangling at you will be a painful waste of your time? Please be specific — let’s create a test kit that helps everyone distinguish opportunity from agony.

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Ghosting: Job candidates turn tables on employers

On February 4, 2019

In the February 5, 2019 Ask The Headhunter Newsletter a reader asks about the consequences of ghosting.

Question

It just happened at work. Someone “ghosted” their job! A man in his 20s just disappeared without saying goodbye or I quit. For those of us who’ve been in the workforce longer, this is amazing behavior. Don’t these people think the consequences will come back to haunt them? Why do employers put up with this? Looking forward to your comments.

Nick’s Reply

This trend doesn’t surprise me at all. Several generations of workers have now experienced ghosting — the kind that employers practice on employees, job applicants, and new hires. I think what you’re seeing is the outcome of employers’ widespread demonstrations of disrespect — they’re getting ghosted in return.

Ghosting the employee

Employees and job seekers are not just fed up; they have reset the table and are serving the dog food employers made them eat. Why bother giving notice, when the last time you resigned (or got fired) an HR manager ordered a security guard to escort you — and all your co-workers saw was the ghost of their former co-worker flying out the door? (See Quit, Fired, Downsized: Leave on your own terms.)

Of course, there are people who thoughtlessly and rudely “disappear,” as you’ve noted. But I think in most cases it’s a conscious decision to dispense with niceties like resignations because, well, why bother when your employer has been treating you like a replaceable part?

Ghosting the recruit

It also happens during the recruiting process. A recruiter in the HR department (or an independent headhunter representing the employer) solicits you, asks for your resume and references, has you fill out pages of online application forms, insists on knowing your current salary, and requires you to sign waivers so they can conduct a background check — all before they ever interview you.

You comply because you really, really want this job. Two weeks later, after you send e-mails and leave voicemails asking what’s up, you realize that the employer that solicited, recruited and pursued you has disappeared. You’ve been ghosted.

Ghosting the new hire

Worse are the many stories of job-offer ghosting that have become all too common in my mailbox. An employer makes a job offer, sometimes verbally and sometimes in writing. The candidate accepts, agrees to a start date, quits their old job and gives notice, and in some cases travels and relocates across the country. A day or two before the job is to commence, the offer is withdrawn with no explanation, apology or compensation.

What you need to know

Can an employer take back a job offer?

13 lies employers tell about job offers

Employment Contracts: Everyone needs promise protection

Parting Company: How to leave your job

One reader recounted that her husband moved a thousand miles several days before his new job was to start, to find housing. Meanwhile, she cancelled their rental agreement, took their children out of school, packed the family’s belongings, and started the long drive to join him. Halfway along the trip, the new hire called his wife to say the employer cancelled the job and rescinded the offer without any reason given.

How do you think that experience will affect that “new hire” when he gets his next job? (See Job offer rescinded after I quit my old job.)

Ghosted after trusting HR

In another case, an HR manager issued a job offer. The candidate accepted and HR instructed him to give notice at the old job immediately. He did. Several days later, the written offer still had not arrived. HR finally returned his many calls and said the background check turned up a problem — but would not disclose what it was. There would be no offer letter. Chalk this disaster up to the candidate’s naive trust in a verbal offer, but blame the HR manager for telling him everything was “a go” and to resign his old job.

(See Get it in writing.)

Turning the tables

Is it any wonder that, when the labor market is tight, workers turn the tables? I’m not saying any of this behavior is appropriate — but the reason more workers are ghosting employers is completely clear. Things have changed.

Perhaps the employer who rescinded an offer didn’t intend disrespect. HR was just very busy processing an offer to a better candidate that came along. The employer that ushered the fired employee out the door was just protecting its interests — it’s nothing personal. But as you note, these changes in the standard of conduct have consequences — but for whom? It depends on the economy.

What are the consequences in today’s economy? I don’t think they are significant for most workers unless the person tries to get a job back at their old company. Today, it seems employers are the ones facing the consequences of treating job applicants and employees with disrespect.

Of course, not all employers have been guilty any more than all workers are. And I’m not suggesting you should ghost anyone, whether you’re an employer, an employee, or a job seeker. It’s a lousy thing to do — and, yes, in some quarters it can affect your reputation. But you’re noticing a trend because there is a trend. Where does it end? Perhaps when workers demand better treatment — and when key jobs remain vacant because no one wants to work for employers that don’t respect them.

Special note to managers: Those recruiters in your HR department, and those third-party headhunters who operate at arm’s length but nonetheless represent your company — you’d better pay attention to how they treat job applicants. Their behavior will come back to haunt you.

Your turn, folks! Have you ghosted or been ghosted? How? Why? More important, how do we change the standard of conduct to improve relations between employers and workers?

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When to stop negotiating a job offer

On January 21, 2019

In the January 22, 2019 Ask The Headhunter Newsletter a reader asks whether negotiating a good job offer would be crazy.

Question

I’m a Senior Data Scientist and I just got a job offer, but the salary is about $1,000 lower than I expected. It’s a management position with less than a dozen staff reporting to me. They also offered a very generous signing bonus of about $50,000.

I think the salary offer is so low because in the interview I was bad at white boarding, and they told me that. But I explained that other skills like machine learning are far more important in this position, and they agreed that’s one of my key strengths. Obviously they agreed enough to want to hire me.

I understand they’re using the signing bonus to hedge their risk, but I still want to negotiate the salary. What do you think? In this situation, how crazy is this idea? Thanks!

Nick’s Reply

Harvard Business Review has called Data Scientist The Sexiest Job Of The 21st Century. Forbes reports it’s the best job in America. Does that make you worth a lot? Probably.

Don’t negotiate out of greed

Does that mean you should be greedy? Absolutely not. Don’t let your market value go to your head, and do not discount the judgment they made about your white boarding skills.

The value of data science depends on the kind of business in which its practiced — something I don’t know in your case. (Is it marketing? Is it financial services, or consulting?) Apparently the value of white boarding is higher than you think, or this employer would not have made a point about it.

Would you turn down the offer?

I think you should ask yourself this question: If you tried to negotiate and they were not to budge on the salary, would you still accept the job?

If you would, then I would not bother negotiating for a $1,000 increase. Given the size of the starting bonus, I’m guessing the salary offer is way over $100,000. That means the $1,000 is a bone of contention of less than 1%. This is what I refer to as One big negotiating no-no. In a moment, I’ll tell you why it’s risky to be greedy.

How to judge the offer

But let’s put the $1,000 aside for a moment, because it’s still important to consider two of the key issues in any job-offer negotiation.

  1. Is this a good place to work, and are they demonstrating that they really want you?
  2. Is the compensation enough for you?

First, what I really mean is, Do you really want this job? Do you want to work with these people? If you don’t, then don’t do it for any amount of money. If you do, then calculate the future value of the job and the cohort you’ll join. (See It’s the people, Stupid.) Then ask, What does $1,000 mean in this context?

Second, what I’m telling you is, If the salary offered is not going to make you happy, then negotiate the offer or reject it.

That’s how I’d judge the offer.

Focus on key decision criteria

Now let’s focus on your particular case. It doesn’t seem the offer is inadequate — not if the difference is less than 1%. While that $1,000 may mean a lot to you — and I don’t mean to disparage your concerns –, I also have to be blunt: I think you’re being greedy. It seems to me you’re discounting the quality of the company and the people you’ll be working with. I’d focus my energy on how good a working environment this would be for you. That’s one key.

I agree the signing bonus is generous. Of course they’re hedging their bet — but it still indicates how much they want you. You’re wise to consider that a signing bonus is a one-time payment that will not affect future raises, your 401(k) basis, or other salary-based perks. But you’d have to work 50 years at a $1,000 higher salary to match that one-time bonus. And as my accountant would point out, if you invest that lump sum for the next 50 years, you’re effectively getting a raise every year on it. So the compensation package is another key — and it sounds quite good or you would be looking for far more than $1,000.

Risks of negotiating

If you would not accept the salary unless it’s $1,000 higher, then by all means negotiate and be ready to reject the total offer. It’s not my place to tell you what this job is worth.

Now here’s the risk I referred to: If you press for an extra $1,000, I would not be surprised if this employer rescinded the offer altogether. (Other risks include a delayed offer and unexpected competitors surfacing.)

If the hiring manager asked my advice, here’s what I’d say: After you showed this candidate good faith worth $50,000, the candidate is demonstrating a preoccupation with $1,000. That’s not good faith on the candidate’s part!

I usually side with candidates who believe they’re worth more money. But in this case $1,000 doesn’t constitute a meaningful negotiation. It’s chump change. I don’t think it’s worth jeopardizing this offer. If you invest that signing bonus at 2%, you’ll get the grand without negotiating anything.

Know when to stop

Knowing how to negotiate effectively includes knowing when to stop. So let’s return to the key question: If they were not to budge on the salary after negotiations, would you still accept the job?

If no, then negotiate. (Here are some tips to help you: Negotiate a better job offer by saying YES.)

If yes, then I think risking the job for a grand is indeed crazy. If other key aspects of the job are satisfactory and you want it, thank them for their offer and generous signing bonus, smile, and tell them you plan to demonstrate so much value to their business that next year they’ll want to give you a substantial raise.

I wish you the best.

How much more is worth negotiating for? Where do you draw the line? What’s your biggest negotiating win? Did you ever negotiate yourself right out of a job offer?

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What are stock options worth in a job offer?

On November 12, 2018

In the November 13, 2018 Ask The Headhunter Newsletter a reader asks whether to accept stock options as part of a compensation package.

Question

stock optionsI’ve been with the same company for five years, with total 18 years’ experience. I’m considering an attractive offer from a year-old start-up financed by a very respected venture capital group. The offer includes stock options. The idea is that someday they’ll go public and will be hugely successful, or someone will buy the company, and we’ll all become rich (on paper).

My question is, how would I go about putting a value on the stock options offered? Understanding the risk I assume, what should I negotiate for? Any suggestions?

Nick’s Reply

Venture funding for start-ups by respected venture groups is slowly picking up after a lull of several years – and that’s a good sign for the economy. But don’t count any stock options before they hatch.

There are as many subtle variations on evaluating options as there are start-ups. You could do well, or you could wind up very disappointed.

I’ll offer you two simple rules of thumb. There is no finesse in this. It doesn’t even involve calculations; just a blunt point of view that I’ve developed as a headhunter during many years of dealing with people who’ve faced this situation. A very few have profited from options, but most haven’t.

Stock Options: Rule 1

The first rule is that the factors which influence a start-up company’s success or failure are unknown to you at this point, and you have virtually no control over them. More important, to varying degrees we can say the same about the founders of the company and those who are funding it.

  • Thus, any attempt you make to rationally analyze how much start-up stock to hold out for — or to estimate what that stock is really worth today or in the unknown future — is a crapshoot.

Stock Options: Rule 2

Here’s my second rule:

  • All stock options in start-ups are worthless by definition because you cannot put a value on something you cannot sell.

How to think about that job offer

Now for my advice, based on those two rules:

  • Accept the offer only if the work and the compensation package without the options would make you take the job.

How to negotiate the job offer

Negotiate for all the stock options you can get. But beware: A company is not likely to give you more options than it has already decided on. Management has thought about this more than you have, under the guidance of people who put up their cash to start the business. Unless you would be a key employee whose expertise would have a key impact on the company’s chances of success, you probably don’t have much leverage to negotiate options.

Now here’s the most important thing to take away from this discussion:

  • Negotiate harder for salary, bonus, incentives, commissions and allowances, and consider the stock options a lottery ticket.

This is what will keep you truly motivated day in and out. While I understand when a start-up’s founders say they want employees who are truly motivated to “throw in with us and take a risk,” you must decide how much of a risk you can afford to take — and whether you’re willing to give up part of your own market value today (cash compensation) for a chance to hit it big later.

Talk with a lawyer

No matter what they put in your job offer, a startup is a special situation because the risks are different from those in a mature company (even a small one). That’s why you should talk with a lawyer to get your job offer reviewed before you accept it.

These Ask The Headhunter PDF books will help you with the compensation end of a job offer:

Fearless Job Hunting, Book 6: The Interview – Be The Profitable Hire. This works even when discussing salary with your current employer.

Fearless Job Hunting, Book 7: Win The Salary Games (long before you negotiate an offer), especially “The Pool-Man Strategy: How to ask for more money,” pp. 13-15. Sometimes it helps to ask casually.

Fearless Job Hunting, Book 8: Play Hardball With Employers, especially “Due Diligence: Don’t take a job without it,” pp. 23-25. This is a must when considering a job at a start-up, though this section applies to established companies, too.

Fearless Job Hunting, Book 9: Be The Master of Job Offers, especially “Non-Compete: Did I really agree to that?”, pp. 5-7.

This article by my own attorney will highlight some of the issues you should consider: Employment Contracts: Everyone needs promise protection.

What’s your tolerance for risk?

Here is a sobering question to test your tolerance to risk in this situation:

  • If you had a chance to buy into this start-up without working there, would you buy its stock today?

If you wouldn’t invest in this start-up as a bystander, why would you take part of your pay in stock?

No matter how many options you get, if the company strikes it rich, I guarantee you’ll look back and think, “I knew I didn’t get enough options when I took this job!”

If the stock winds up worthless, you’ll be glad you were doing work you really wanted to do, and getting paid a nice package in the meantime.

Have you ever taken stock options as part of a job offer (with a start-up or otherwise)? How did it turn out? How did you negotiate the details? How would you advise this reader?

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13 lies employers tell about job offers

On October 29, 2018

In the October 30, 2018 Ask The Headhunter Newsletter a reader recounts her experience with a small-business owner and how he plays games with job offers.

Question

job offersI just came across some of your articles when trying to research my job offer being rescinded (Behind the scenes of a rescinded job offer, Job offer rescinded after I quit my job). A lot of what you wrote resonated with me and made me feel much better about my experience today.

I interviewed for a high level position at a smaller company, so I was talking to the owner directly. Here are the key facts about the compensation:

  1. The offer was at the bottom of the salary range discussed during my interview process.
  2. The owner said I could make it up with a large bonus, but that they didn’t have a structure for how bonuses worked. If the company was doing well I’d get all or part of the bonus, but it was at his discretion.
  3. I asked if he was flexible on the base pay at all, and I brought up the industry average (which was a lot higher) and my experience level and what I could bring to the table.
  4. He first said he was flexible on the base pay and even said that what he was paying me didn’t matter to him, but he didn’t actually budge and said this was a good offer he was making me.
  5. He said I needed to trust that I would be getting the bonus and at the end of the day my pay would be much higher.


I said I was still very interested and excited about the role. I explained that I would really like to review the details of the whole package, including the benefits, in case I had any questions. It’s a small company and there were some non-standard things they were doing with benefits, like providing some kind of stipend for your cell phone and other things, but no 401(k).

Here’s how that discussion went:

  1. I asked if he could send the complete offer in writing so that I go over all of it to make sure I understood everything, and then confirm my positive response.
  2. He asked how long I needed to review it.
  3. I asked if I could get it to him before Friday (this was on a Tuesday).
  4. He sounded disappointed. He said that wasn’t the response he was expecting but he would still send over the offer in writing.
  5. He said he had other candidates that he needed to inform who weren’t getting the job and it was not fair to them to make them wait 2-3 days until he got a confirmation from me.
  6. I asked him if he had a timeline in mind that would work better for him, so he said Thursday morning.
  7. I said okay.


That evening, I got an e-mail saying he was rescinding the offer. He said he wanted someone who was so excited about joining his company that they are prepared and anxious to accept the offer when it’s made verbally.

He said that he felt I lacked passion for his company and that he didn’t want anyone there who was not passionate about his brand.

I wrote him back a professional response thanking him for everything.

I felt very validated when I found your articles because you explain that employers often make verbal offers because they are merely fishing for a reaction, not actually making a bona fide offer. That’s exactly what this was.

The job is an analytical one, so I was surprised that they would expect an instant, seat-of-the-pants response when they were looking for a detail-oriented, analytical person!

When I told my friends what happened, they fell into two camps. All my friends who work at various levels in corporate environments (including HR) thought I did nothing wrong. Two of my friends who both own small companies agreed with the owner and said they, too, would have rescinded the offer because they felt it was insulting to not immediately accept the verbal offer. They said that asking for the offer in writing showed I lacked trust. This of course goes against everything I know and believe.

I see what happened as a red flag for how I may be treated in the future. I’m at a bad job now but I don’t want to go to another bad job. I’m interested in this divide between large companies and small business owners, and I thought you would be, too.

Are the negotiating rules really different for small companies versus larger ones? Or are the small business owners I’ve described just outliers? Thanks for your comments.

Nick’s Reply

I think you dodged a bullet. Your story is important because it highlights a raft of games employers play with job offers.

Are these problems particular to small companies? While I can’t offer data to support this, my experience suggests small business owners are far more likely to play these games than managers in larger companies. I think business owners tend to be far more autocratic than their peers in companies that have many owners or investors.

Strike One

Let’s look at the facts you presented above — #6 through #9. This business owner decided to extend an offer after you satisfactorily negotiated a more-than-reasonable decision deadline. He made a verbal agreement with you about the deadline. Then he reneged on what he agreed to.

That’s strike one against him. It tells us he can’t be trusted.

Strike Two

You prudently asked for details of the offer in writing. He hedged, then agreed. Then he reneged and never provided anything in writing. I think he never had any intention of giving you a written offer.

Get it in writing.

Benefits: The employer trick that lowers your job offer.

This is different from merely agreeing to a decision timeline. This is about reneging on putting terms in writing. Do you think he does business deals on a simple handshake, without anything in writing? That’s a rhetorical question but, of course, he may in fact do deals with nothing in writing.

Either way, that’s strike two.

Strike Three

After tactful questions from you about the salary and bonus structure (#1 – #5), he refused to commit to anything concrete. He wants you to trust him, but he doesn’t trust you. He uses a double standard.

The old rule about “trust but verify” is why we put agreements in writing. I’ll repeat: This guy had no intention of putting anything in writing. “Trust me” means “No.”

Strike three.

Strike Four

The egregious management error this employer committed was to judge you unworthy because you failed to instantly display passion and a sucker’s excitement for an incomplete, dishonest job offer. He lost a potentially great hire.

If a strike four could be counted, that’s it.

If he wants to hire a foolish employee, he’s talking to the wrong person. If he’s looking for a thoughtless worker whose decision-making process is marked by a lack of prudence and due diligence, he should absolutely move on to another candidate he can lie to and hire on the spot.

The lessons from this game

It’s a good sign when an employer engages in a negotiation with a job applicant on compensation, on the terms of the job, and even on when a decision is due. It suggests you’ll be working for a boss who values your input and your circumspection, and who wants to make working together a win-win experience.

It’s a bad sign when an employer plays games.

You’ve taken the trouble to share your experience in very useful detail, revealing the many games employers play with job offers. This guy is bold enough to play them all at once — then to blame you for catching him.

Lies employers tell you about job offers

These are some of the lies employers tell, presented as a sort of “dictionary.” Here’s what unworthy employers will do in the hiring process:

  1. Salary Range. Establish a salary range to set ground rules for proceeding with interviews, then they pretend the low end is going to impress you.
  2. Good Offer. Tell you it’s a good offer without showing you exactly what the offer is.
  3. Competitive. Refer to “competitive” pay and benefits but never to precise sums or specific benefits.
  4. Bonus Structure. Refer to contingent forms of pay — like bonuses and commissions — but do not define objective, measurable, agreed-upon criteria that you must meet to earn those bonuses.
  5. Flexible. Say they are flexible on pay, but make no explicit compromises or concessions about pay.
  6. Industry Standard. Talk about industry-standard or average pay, but don’t define what that is or cite the sources of those numbers.
  7. Opportunity. Suggest that what this deal is really all about is a great opportunity for you, and that pay isn’t really the issue to them, when it clearly is because they won’t negotiate pay with you candidly.
  8. Trust. Tell you to trust them to pay you fairly, but will not define the compensation deal objectively in writing — or trust you to review their offer.
  9. Terms. Want you to agree to accept a job offer immediately based only on a few points — and “don’t worry about the rest of the details,” or what lawyers refer to as “terms.”
  10. Job Offer. Want you to commit to a deal verbally, while they balk about putting it in writing with their signature on it.
  11. Decision. Agree to give you two days to review a written offer they haven’t given you yet, then renege because you insulted them by not deciding instantly.
  12. Qualified. Judge how qualified you are for the job by whether you’re “excited” and “passionate” enough to accept on the spot.
  13. Commitment. Negotiate terms and make commitments then violate them.

These are all lies unworthy employers tell job applicants they try to take advantage of. The words in the little “dictionary” above actually mean something to good employers — and you’ll see that instantly in a good employer’s behavior.

Never work with jerks

You should never go to work for employers who play these job-offer games. You’d regret it because they’d behave the same way day-to-day. They’re jerks.

For more about how to negotiate the best compensation package, see:

Fearless Job Hunting, Book 7: Win The Salary Games (long before you negotiate an offer)

Fearless Job Hunting, Book 9: Be The Master of Job Offers

I think you’ve identified at least three people you should never work with — including your friends who said you insulted the employer and displayed a lack of trust. Don’t doubt your judgement – it has certainly served you well here.

Whether you’re talking to a big or small company, the approach and questions you relied on here will tell you all you need to know about an employer.

From the details you shared, I see a prudent, honest, forthright, responsible professional who treats others the way she wishes to be treated. I see no fault in anything you said or did during the hiring process. In fact, I compliment you for doing everything right – it all combined to help you dodge a bullet.

On to the next! Find a company that deserves a good hire.

My only suggestion is to carefully check a company’s and manager’s references before you invest your time interviewing there. You might find this useful: 5 rules to test for the best job opportunities.

What lies have you heard employers tell job applicants? What would you add to the dictionary above? What else should job seekers look out for in the throes of getting a job offer? What details do you insist on having in a written job offer?

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Can I get hired if I lack some job requirements?

On October 1, 2018

In the October 2, 2018 Ask The Headhunter Newsletter a reader can do the job but lacks some job requirements.

Question

job requirementsWhat do you do when the employer interviewing you has four requirements but you meet only three of them — yet you know that you’re the best person for the job? How can I turn this kind of situation into a job offer?

Nick’s Reply

Isn’t this the way it goes? You are certain the job is a great fit, but the manager isn’t. It’s of course possible your judgement is incorrect, and that you are not the best person for the job. Going into a job interview, you don’t really have enough information about the job, the work environment or the manager to know that, any more than the interviewer has enough information about you. That’s the purpose of the interview. But your question isn’t about how you can assess a job; it’s about how to show you’re worth hiring, assuming you can gather enough information to be reasonably sure you are in fact a very good candidate. So let’s proceed with that understanding.

Credentials vs. Show-And-Tell

I’ll let you in on a secret: Managers are not very good at figuring out whether a candidate really fits. Managers tend to give too much weight to credentials on a resume, and not enough to actual evidence that a candidate can do the work. (For more about direct and indirect assessment of job candidates, see 5 Steps to Easy Interviews and Quick Job Offers.)

This actually gives you the advantage. It lets you suggest to the manager that you should do a show-and-tell, rather than just answer questions about what’s on your resume (and in your experience). It gives the manager an opportunity to see you perform.

If you lack something an employer wants, but you’re a fit on other counts, don’t wait for the employer to decide to take a chance on you. He probably won’t. Don’t wait for him to figure out what to do with you – figure it out for him and explain it.

Show you can do the work

Remember this: The key requirement for any job — whether anyone admits it or not — is the ability to actually do the work. This is your opportunity to bring the focus of the discussion to the job in question, and to your relevant skills.

Offer to demonstrate what you can do, and how you will do the work. Show him. Few job candidates ever do that in an interview. A good employer who’s looking for a confident, talented, dedicated worker will react well.

Ask the manager flat-out if he’s hesitating to hire you over that one point. Then explain that you’d like to prove you’re a fast learner and that your other skills will more than compensate for anything that might be lacking:

“May I take a few minutes to show you, right now, how I would do this job? If I can’t convince you, then you shouldn’t hire me.”

This is an incredibly powerful approach because it requires a commitment from you. Of course, it’s also risky and you must be prepared to do such a demonstration. (See “How to Do A Working Interview™,” pp. 22-24, in Fearless Job Hunting, Book 6, The Interview: Be The Profitable Hire.)

Make the commitment that wins the job

How should you demonstrate your abilities? Consider questions like these in advance of your interview, and make sure you have good answers:

  • Would you need to operate a computer or other machine? (Ask to sit at the machine to show how you’d handle it.)
  • Does the job require talking with customers? (Ask for a scenario you’d have to handle, and then show what you’d say to the customer.)
  • Can you draw an outline of how you would perform a task? (Ask what specific objective you’d have to achieve, then list the steps you’d follow.)
  • Can you explain how you’d solve a particular problem? (Draw a picture and show your plan.)

Don’t let a missing requirement be your deal-breaker. Be ready to address challenges like those above. Making this kind of powerful commitment in the interview can shift the manager’s decision criteria in your direction and help you win the job.

When an interviewer begins to lose interest, it’s up to you to turn things around. Stand and show you can deliver. If a manager doesn’t respond to that, go on to a better employer who will take notice of a candidate who’s ready to put it all on the line.

You can still apply for a job, and do a successful interview, even if you don’t seem to meet all the job requirements — if you can show you can do the job nonetheless.

See: The shortcut to success in job interviews.

Is there a compelling substitute for job requirements and qualifications? Have you ever won a job in spite of not having all the qualifications listed in the job description? How did you do it?

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Behind the scenes of a rescinded job offer

On September 24, 2018

In the September 25, 2018 Ask The Headhunter Newsletter an HR worker reveals how a faulty HR process led to a job offer being rescinded after the applicant quit his old job.

Question

rescindedI work in Human Resources (HR). During our on-boarding process, we send prospective employees for a drug screen and run a background investigation and, if the job requires driving, a motor vehicle record (MVR) check. The background is launched when the applicant electronically completes an authorization.

We had planned on hiring a guy, when three days before his start date he had still not signed the authorization. So I ran the part of the background that I already had authorization for, and saw that his MVR was horrible. He had DUIs, super-speeder violations and more.

He’s already given his notice to his old employer, and we can’t hire him. I think he avoided signing the background authorization to hide a bad record.

We had to rescind the position as we don’t have any positions for a non-driver. I feel bad about this but I also think he should take some of the responsibility. What do you think?

Nick’s Reply

It’s important to consider the critical path of your company’s hiring process. That is, which steps are critically dependent on earlier steps being completed satisfactorily? And, who is responsible for those?

The critical path to making a hire

You don’t say explicitly whether you made this applicant a bona fide job offer. But I think it’s fair to assume you did based on two other pieces of information you shared.

  • You started the on-boarding process. You would not have done that without two critical steps being completed first. You had to extend a job offer and he had to accept it.
  • He quit his old job. He would not have taken that critical step unless the two aforementioned critical actions were taken first — an offer was tendered and accepted.

Please note that I’m not putting any specific order on these critical steps, though of course there is a necessary order. In any case, when you made that job offer and it was accepted, you had a contract. The deal was done.

A job offer is a contract

So, where does that leave your company and the HR person who is responsible for the hiring process? In a bad, indefensible spot, I think. You made and broke an agreement. A rescinded job offer is a broken contract.

Two other critical steps in this hiring path are:

  • Obtaining authorization to conduct a background investigation.
  • Conducting the investigation.

Clearly, both of these critical steps must be done before you can hire anyone. And the investigation — a critical step — brought the entire process to a screeching halt when you discovered the problems, as it should. That’s why that step is on the critical path to hiring, right?

Where you blew it is that you apparently jumped ahead. You made an offer — a contract — before obtaining authorization to do the background check, and before you had any investigation results. You acted without due diligence.

Why would any employer do that?

Due diligence

Due Diligence: Don’t take a job without it.

See Fearless Job Hunting, Book 8: Play Hardball With Employers, p. 23.

The applicant’s mistake is that he followed your lead. He, too, failed to perform due diligence to ensure your company was acting in good faith. He didn’t double-check to make sure you had followed your own critical path before he took the ultimate critical step: He quit his job.

Why would any job applicant do that?

No job applicant can afford to quit their old job, or to trust an employer or HR rep, unless they are certain they have a bona fide job offer.

A bona fide job offer

A job offer is bona fide when it is:

  • Neither specious nor counterfeit; genuine
  • Made with earnest intent; sincere
  • Made in good faith without fraud or deceit

You, as an HR representative, know your company cannot hire someone with a bad record. So, why did you make a job offer before checking? There’s no good faith when you lead someone to quit a job so they can start work with you — then pull the rug out from under them. (See HR Managers: Do your job, or get out.)

A rescinded offer is a broken contract

You said: “We had to rescind the position as we don’t have any positions for a non-driver.”

That’s not why you rescinded the offer. You rescinded because you didn’t do your job properly. The main fault is yours, and it could get your company sued. (For an attorney’s take on this, see Job offer rescinded after I quit my old job.)

You should never have made an offer before you conducted the investigation. The investigation came first on the critical path to making an offer, before the hire quit his other job, and before you began on-boarding the new hire.

Hire with integrity

A company should hire with integrity. It should follow a sound process that ensures a healthy deal will be struck that is good for both parties. That requires following a series of steps in proper order, to protect both parties. (See Protect yourself from exploding job offers.)

Here’s the critical path you should follow. Staple it to your office wall where you can see it all the time. Make sure everyone involved sees it in advance and signs off at each step. None of these steps should be taken until all previous ones have been completed:

  1. Make sure the position is open and fully funded with an appropriate salary and benefits.
  2. Conduct interviews.
  3. Decide your favored applicant is qualified and that you want to hire them.
  4. Conduct appropriate background investigation(s) after obtaining authorizations.
  5. Confirm that all information you need about the candidate has been gathered and logged.
  6. Make a bona fide offer in writing that includes all terms, signed by an authorized representative of the company.
  7. Confirm the candidate’s bona fide acceptance of the offer and terms in writing.
  8. Notify the candidate that the hire is confirmed and that they should resign their old job.
  9. Conduct your on-boarding process.
  10. New hire starts work.

The applicant was foolish to accept a job offer before confirming that your company’s critical path had been completed. He was disingenuous about not signing the authorization for the background investigation. He was downright stupid to quit his old job before ensuring the new job was solid.

So he, too, bears responsibility. Caveat emptor. But shame on you as the employer for letting the matter get to a point where you had to rescind the job offer.

The employer owns the hiring process

Your company is going to spend money to hire someone. You start the ball rolling and control the process. You own the process.

Don’t know how to properly check out a job candidate? See References: How employers bungle a competitive edge.

It doesn’t matter if your investigations reveal the candidate is an axe murderer. It’s still not his fault that you didn’t do your job prior to issuing a job offer. You failed to conduct due diligence (the checks and investigations). In this case, your process should have stopped dead at step (4.) above.

You tacitly if not explicitly encouraged him to quit his job and relinquish his pay based on your assurance (the job offer you gave him) that he could rely on you to hire him. No one deserves that. (If he’s an axe murderer and you don’t figure it out prior to making him an offer, then shame on you.)

Rescinding a job is not an option

Please review the 10 steps in the list above. Nowhere is there a “Rescind job offer” step. It’s a terribly embarrassing option. Rescinding a job offer is a last resort that you — and your company — will pay for with your reputations.

You need to sit down with your top management to develop a critical path to follow when hiring. The fact that you were three days from his start date when you figured all this out reveals a shocking problem at your company. (See Smart Hiring: A manager who respects applicants (Part 1).)

Rescinding a job offer that your company never should have made is unacceptable.

Is it ever legitimate to rescind an offer? When — and why? Have you ever rescinded a job offer that you made to an applicant? Have you ever had an offer pulled out from under you? Was it a legitimate action? What steps belong on the critical path to completing a hire and who is responsible for them?

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