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Mekala S

Hello Seniors
Good Morning
I would like to have your suggestion on the following Scenario.
one candidate has accepted our job offer 2 months before and he is suppose to join us in 15 days time. Now he got another offer from company X with a better pay. He called us to inform that he got a better offer from another company but still would like to work with our company if he gets more than what they have offered. He didn't demand but he was very polite during the conversation. He seems to be a good candidate but the hike % is more than our salary structure. Is it ethical to negotiate after accepting our company offer? How to handle this scenario. Kindly advice.

From India, Chennai
Insolvency N Gst Professional
Recruitment/talent Acquisition, Career Counselling
Asst. Professor
Mechanical Design Manager
+3 Others


Mekala S.The paradigms of employment are fast changing in this technology driven business environment.The concept of 'employee' is being replaced by the concept of 'consultants' where in the Gen-y or the millennials love more to work like consultants with freedom of flexible working hours and of expression and thought and experimentation and with commitment to deliver goods on time than as a traditional employee bound in a contract to do a job under the watching gaze of a manager.They are conscious of their talent and worth and they do not feel shy of jumping on to the wagon of an employer who bids them higher.In the war for talent in the job market, they consider that this is fair and wait for no body's nod of approval..So the concept of 'ethics' is also adapting itself to the changing times.'First matter economics and latter ethics ' seems to be the norm now. I could have spared you the strain of reading all this but felt compelled to say as you raised the issue of ethics.

Now the question is whether it is worth employing him after his fresh demand for hike in the light of the counter offer. You are the best judge to take a decision and not we though we can provide you with some inputs that may be of help to you.Now keep aside the ethics argument because in all probability it may not cut ice with the he showed you that he is worth more than what you are willing to offer him.and look at the issue from the sheer business perspective. How did you find the employee in the interview? Is he a top talent?.If employed, can he surely add value to your business? What is your need for him? Is it immediate or you can wait for some time?If you let him go, can you easily find a replacement with similar job fit and for the same salary which you offered to this candidate ? Did you see the letter of counter offer and if so what is brand status of that company vis-a-vis yours?This may help you in re-negotiating with the employee by telling him that you are a better brand as you said that the employee was polite and was willing to work for you.You need to think of all information/details relevant to take a decision and it is only that have to take this decision. It is your road and you only need to walk to reach the destination and no body walks for you.


HR & Labour Law Consultant

From India, Mumbai

I would let him go to the company which pays him more as per the candidate.
Do not set a precedent of renegotiating salary with an employee who has not yet joined.
Reading between the lines I get a feeling that would be employee is playing a mind game and trying to get better terms.

From India, Pune
Talent Gyaan

In this kind of a scenario :
- Since the candidate has called you upfront and told you that he has a better offer,you should talk to him diplomatically and ask him to forward you the offer.He may resist this but you can tell him that since you will need to convince your management to go out of the way and get a one off approval,you will need the offer letter.You may ask him to meet you face to face and show you the offer as well if he is not comfortable sharing it in soft .This way,you will also get a chance to engage with him one to one f2f and help you understand whether he is speaking the truth or just trying to fool around.
- If he is really keen to join your company,he will definitely share the offer details.If he doesnt share,It is best to let him go as you will be setting a wrong precedent and the employee can also create a nuisance value for your organisation once onboarded.
Hope this helps.

From India, Ahmedabad
Yes! It’s his right to demand for more. Some other company giving him better compensation, so if you want him, you should give him same salary as offered by other company. Otherwise let him go.
From India, Pune

Hello Mekala,

Like Talent Gyaan mentioned, FIRST ascertain whether what this guy is saying is true or is he just trying to get a better bargain from your Company.

Just think thru your HEAD & NOT thru your heart....some guys try to take the moral high-ground saying 'why will I lie', etc. If there's nothing in-writing, the other Offer just doesn't exist as far as you are concerned....even if it's from Google.

If you find that he is trying to pull a fast one, you know what to do.

Now presuming he is indeed speaking the truth, that's when you need to discuss with your bosses.

I apply the following Rules....and suggest the same to my clients too.

Step-1: Does he deserve the hike he is asking? Depends on his Interview Performances.

If Yes, go to Step-2; else drop him.

Step-2: Can the Company afford the hiked figure?

If No, drop him. If Yes, go to Step-3.

Step-3: Do you expect any backlash from existing employees? If No, go ahead to make the new Offer. If Yes, then can the Company handle it......focus being on 'handling' part & NOT 'if the backlash comes'.

If & when you decide to make a new Offer, you can package innovatively keeping in mind that he doesn't use your Offer very soon to speak to another Company [Loyalty Bonus payable after 1 year, etc being such measures].

All the Best.



From India, Hyderabad

Reg. Salary Negotiation - Job Offer
Such candidate is not suitable for any job offer. The attitude shows that the candidate is not determined & can be driven by any attractive offer at any time. He has lost the trust & attachment before joining. So even he is ready to join as per the earlier contract I would not prefer to let him join.
Dr. Prasad Bhanage
Sinhgad Institutes
Associate Professor

From India, Pune

Hello PSB,

Prima-facie you are absolutely right.

But unfortunately, in today's world, the contours & definitions of 'ethics' have changed a lot.......more towards being a 'relative' than 'absolute' attribute of an individual.

Earlier, the bottomline was what you & Nathrao mentioned--even IF God gives a counter-Offer, the individual would stick to his/her commitment.

In these days--from an Employer's perspective--when getting good skilled candidates....more so in technical so tough that many Companies now have Joining Bonuses [unheard of earlier] & from also a Candidate's perspective, with so many options going around for someone whose technical abilities are proven, it's getting really tough to have the same level of commitment from individuals across the board.

And, after all, the Company has to run........I would have taken a different stand IF it were me. But that doesn't mean others too have to follow the same path. And here, in this case, Mekala/HR is BOUND by his/her responsibility towards the Company......irrespective of what he/she would have done IF it's not linked to the Company.

In a way, I would equate this scenario to the one in Kurukshetra when Dharma Raja HAD to announce "Aswathama hathaha.....Kunjaraha" to ensure Arjuna kills/eliminates Drona. Left to himself, Dharma Raja wouldn't have done what he did, NOR would there have been any pressure on him to do so.....but here he was bound by his dharma towards the Pandava Army.

But the point would surely be 'where to draw the line'. And that's where each one's perceptions, conclusions & actions vary.

And this I think would be a better debate...though not sure IF there can be any absolute conclusions at the EoD.



From India, Hyderabad
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