Case Study When qualified applicants are scarce, recruiting becomes extremely co
ID: 361270 • Letter: C
Question
Case Study
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 short-listed candidates, a high-tech company, Com- pany X, made an offer to one and advised the other two candidates that they were unsuccessful. The 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 three 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 Y’s offer, the candidate had consulted a respected men- tor 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.
Questions
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?
Explanation / Answer
Looking into the case as given above, following conclusions can be made:
- It is difficult for the company X to legally enforce the verbal commitment because such verbal commitments no legal backing. As in the either case the company X has verbally offered a week’s time for candidate to decide about the job offer whereas given only three days time in actual to decide to the candidate.
- Candidate verbally accepted the offer and was sent a contract to sign rather than returning the signed contract hence there is no written document available with the company X to take any legal action against the candidate and the company Y. However company x can move for the court but it will be difficult to prove the verbal commitment as it has no legal backing as written document.
- The second company knew that the candidate had verbally accepted Company X’s offer before accepting Company Y’s offer but still it has asked candidate to accept its offer because this company knew that there is not much significance of such verbal commitment.
- The candidate simply saw Company Y as the more prestigious of the two employers hence candidate has a right to decide between the two to work for as his prospective employer.