- Client needs to fill a position.
- Client consults with its recruiting partner to ensure that the target candidate is attainable, the job spec is compelling to target candidates, and the compensation is in line with the pool of target candidates.
- Client retains recruiter
- Recruiter submits candidates
- Candidates are interviewed
- Client presents an offer
- Candidate accepts.
- Everyone lives happily ever after
The key word in that introduction is "supposed." The fairy tale ending above can be derailed- even if everyone involved is acting in good faith
Some time after a candidate began interviewing for the role, a new CEO was hired. The CEO's first order of business was developing a strategic plan which necessitated a reorganization of the company. While the C-suite was busy developing the reorg blueprint was only available on a need to know basis.
As a result, neither the hiring manager nor the HR leader was aware that they were about to issue an offer to a candidate for a role that would be substantively changed as part of the reorg, which would be announced after the offer was issued, and before it was accepted.
To make matters worse, by the time the oversight was discovered, the candidate had declined another offer, to accept this one.
This story got it's happily ever after. The client was able to craft a role that gave the candidate the professional challenge and career development runway which he sought. The offer was accepted.
But the client dodged the bullet of potential liability to the candidate.
It's hard to see where the obvious solution to this problem lies. Should massive organizations freeze all hiring- even high priority strategic roles- in the run up to a reorg? How would you advise this or other clients to avoid this liability in the future?
1 comments:
While M&A activities are taking place, or while very large reorgs are in progress, many companies will freeze hiring. Not necessarily in a public way, many will simply instruct HR to "hold" all reqs and delay offer letters for a specified time. BTW, this is also one of the reasons the head of HR and other high-level HR staff (despite not being involved in the purely financial and business-aspects of the company) are almost always on the list of people that require clearance before making stock trades. Due to their position, they are often among the first to know that M&A activity is in progress.
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