Dear HR Friends, Hope all are safe and doing good, I need some suggestions for providing an offer confirmation letter along with package details for the selected candidate is mandatory or we can send a job offer letter without package details. Nowadays job-hopping is a very common problem that HR is facing in each and every company. Can someone provide some suggestions?
From India, Madras

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Job hopping is not contingent on mention of salary package though disclosure of the package could be used by the candidate to bargain for a better package elsewhere. Even otherwise, once the candidate is not satisfied with job offer, he/she will always be on the lookout for greener pastures. While disclosure or non-disclosure need not be a uniform solution for all, you can use it as per your judgement.
From India, Mumbai
Dear Shashipriya,

Yes, you need not write the salary break up or even a consolidated salary amount in the offer letter. The practice of withholding this amount has been going on for a long for the reasons mentioned in your post.

However, please be cautious. There should not be confusion on the salary break up or take-home salary by the would-be employee. Occasionally, I have found that a misunderstanding occurred on the salary break up and the employee was frustrated after joining. Please find out the ways to avoid it.

Thanks,

Dinesh Divekar

From India, Bangalore
Dear Colleague,

It is sound HR practice to issue offer letter with all essential conditions such as salary package, designation, probation period and joining date.Your written commitment, will lend a great credibility to your intentions to the candidate.

To address the issue of the candidate backing out after accepting the offer letter, you may include a clause stating " This offer is made subject to your accepting the same by returning the duplicate copy of this letter duly signed in the token of your firm commitment to join the company on the committed date . If you fail to join after acceptance of the offer , the company shall proceed legally against you."

This clause is suggested to safeguard your legal right and also to instil some fear in the mind. However, this is not a panecia to the problem but will facilitate nipping the problem in the bud.

Yet there will always be one or two who may intentionally or out of some compulsion ditch you in the last minute. This clause will give you handle to invoke it in fit cases.

Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai
Dear Shashipriya,

There is a suggestion by a learned member to include a paragraph in the offer letter which says that if the candidate fails to join, then the company is free to take legal action against the candidate.

However, we have to think from the opposite side too. If such a deterministic warning is given in the offer letter itself, the candidate may perceive it as a threat and may think that the company has a coercive work culture. Such threats will keep a talented candidate or a confident candidate at bay. What if the candidate declines the offer? When a talented candidate declines the offer, what will be the loss to the company? The company will suffer because of the opportunity cost. Such costs are incalculable.

Now I am coming to file a suit. Suppose the company files a lawsuit against the candidate for failing to honour the condition of the offer letter. Nevertheless, the case will drag on at least for a decade, and what will be the cost even if the court gives a ruling in favour of the company? Secondly, it will be a distraction from the primary goal of business expansion or customer satisfaction.

By the way, how many suits a company can file? A few suits will make your company gasp because of the burden of the lawsuits.

Gone are the days when there used to be an employer's market. For the last 20 years, it has been the employees' market and they have a sway in the job market more than the employers! Therefore, while taking a decision, one has to be mindful of the results, usefulness, advantages, and disadvantages of one's action or procedure.

Nevertheless, the problem of "no show" or backing out by the candidate has to be addressed. One of the suggestions from my side is to show a small video, say of 5 minutes on the positive side of the company. Do not send this video by WA or email. In the video, you can show how the company helps the employees to grow, examples of how employees have grown, the autonomy that the company gives to the employees, how your company is different from the competitors and so on. This will make your company attractive. However, avoid painting a false picture in the video. Otherwise, the newly joined employee should not feel that he/she has been cheated.

Thanks,

Dinesh Divekar

From India, Bangalore
Dear Colleague,

The learned colleague has expressed contrary views by disagreeing with mine and I respect them for whatever worth they are.

To read ( or misread?) the clause suggested by me to be seen by the candidate as indication of coercive culture and as a result he may decline the offer as being the only possible outcome is far fetched , imaginary and devoid of any supporting research data. Similarly his observations about job market being employees market lacks any scientific data or basis which makes it very sweeping observations. If he is relying on any research data on these points he should provide.

Although we agree to disagree, the purpose is to keep discussions churning with fresh thinking .

Regards,

Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai
Coercive clause in the offer letter incorporating penalty/damages for non-joining, to my understanding, is unlikely to be upheld in the legal proceeding, if at all instituted.
From India, Kochi

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