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You've been told by the company president to rescind an offer of employment. Your employer lost a big client yesterday -- a client the new employee was hired to manage. She signed your offer letter, resigned from her employer, and is supposed to start in three days. What do you do?
What the Expert says: This predicament requires you to think through legal and ethical issues. Even though you've lost the account this candidate was hired to manage, there may be other accounts or different ways she can contribute to the organization.
Sit down with the president and talk through the situation. Discuss the candidate's skills and experience at length, and determine whether or not she can be utilized. It's your job to present the pros and cons to your president, particularly since he may not have thought through his decision. And this doesn't just mean the potential legal exposure. A move to rescind an offer may also have negative effects on company image and staff morale as news of this decision moves through the grapevine.
If you determine that rescinding the offer is necessary, discuss the possible legal repercussions. The president may be under the misguided assumption that offers can be withdrawn without consequence. In fact, the candidate may be able to successfully argue that the offer letter is a binding contract. The letter was a critical component in her resignation and she may have declined other offers of employment. Always consult an attorney before rescinding an offer and be sure to have him review the offer letter before you send it to a candidate.
Finally, contact the candidate and discuss the situation with her. If you do rescind the offer, consider offering her financial and/or job searching assistance to soften the blow.
