Job Network
Sponsored by

Had offer then company changed terms

2,921 Views | 30 Replies | Last: 6 yr ago by NoHo Hank
TheAggieInventor
How long do you want to ignore this user?
I am a current student in my last semester. I had an offer from a prominent company for a great sum of money for my age at an overall compensation of $97k. Now the company has come back and said at the signing table that they made a mistake and the overall comp has come down to $65k.... now where it's an offer and it is more "standard" for my age and major and experience, I bypassed other offers that were much better than this and it's really my last offer. I'm curious as to what I should say back to the company that messed up the offer which set high hopes in me moving forward and have now thrown out this much lower offer. They said they are willing to do a special compensation package for me in the form of a bonus given the error but I'm curious what you all think I should do and how far I should push given the mistake?
Disclaimer: I'm not trying to be greedy and I'm grateful for the working opportunity but I also want what's fair given the situation. Thank you
Dddfff
How long do you want to ignore this user?
AG
Assuming you like this company as much as the others you passed on originally... take the special comp / bonus and move along. Hard work and some patience, and you'll be exceeding the error offer.
AgLA06
How long do you want to ignore this user?
AG
TheAggieInventor said:

I am a current student in my last semester. I had an offer from a prominent company for a great sum of money for my age at an overall compensation of $97k. Now the company has come back and said at the signing table that they made a mistake and the overall comp has come down to $65k.... now where it's an offer and it is more "standard" for my age and major and experience, I bypassed other offers that were much better than this and it's really my last offer. I'm curious as to what I should say back to the company that messed up the offer which set high hopes in me moving forward and have now thrown out this much lower offer. They said they are willing to do a special compensation package for me in the form of a bonus given the error but I'm curious what you all think I should do and how far I should push given the mistake?
Disclaimer: I'm not trying to be greedy and I'm grateful for the working opportunity but I also want what's fair given the situation. Thank you
What other options do you have?
JamesPShelley
How long do you want to ignore this user?
AgLA06 said:

TheAggieInventor said:

I am a current student in my last semester. I had an offer from a prominent company for a great sum of money for my age at an overall compensation of $97k. Now the company has come back and said at the signing table that they made a mistake and the overall comp has come down to $65k.... now where it's an offer and it is more "standard" for my age and major and experience, I bypassed other offers that were much better than this and it's really my last offer. I'm curious as to what I should say back to the company that messed up the offer which set high hopes in me moving forward and have now thrown out this much lower offer. They said they are willing to do a special compensation package for me in the form of a bonus given the error but I'm curious what you all think I should do and how far I should push given the mistake?
Disclaimer: I'm not trying to be greedy and I'm grateful for the working opportunity but I also want what's fair given the situation. Thank you
What other options do you have?

Was the offer of $97K in writing? I'd suggest someone owes you $32K. I wouldn't let that slide.

If the offers which were much better aren't in writing, likely the people who made the offers could produce affidavits so affirming. If you've that $97K offer in writing, and absent any contingencies (like if an error was made), you've got ~$25K coming.

Best wishes.

Greedy? You mean like the $32K less offer?
The Pilot
How long do you want to ignore this user?
AG
I wouldn't attempt to force them to pay you the extra money unless you don't see yourself working there long.

Even if they pay you the extra now, they'll likely get their money back somehow by reducing future pay increases.

Also is an offer letter really a binding contract in Texas?

I'd take extra special consideration money. If that's still not enough, I'd consider reaching out to the others you already declined, maybe they haven't filled the post.
E
How long do you want to ignore this user?
AG
Did you previously sign the offer and formally "accpet" it? Or was it that you want to accept it and they came back before you signed it and said it was $65?

If you both hadn't agreed to the $95 they dont owe you anything. If you really like the company and can see yourself working for a long time there, take the nice package they have offered and move on.

As a new grad with probably slim to no real work experience, don't try to out-negotiate with them.
AgLA06
How long do you want to ignore this user?
AG
What exactly stops them from getting pissed and walking him out at the end of day one with no money or backup job?

I actually had something similar happen to me for an internship my last year of school. What they meant and what they wrote were two very different things. They said they were offering me an internship that paid X. What they meant was they were offering me an internship that paid X for a year even though I was only working 8 months so my take home check was about 70% of what I thought it was going to be. I went to management and asked why my check was light. They met with me and explained they were sorry, they made the mistake, but that was what they were paying. My options were to accept it or find somewhere else to work.

The reality is accept the new offer or find somewhere else to work. The only thing you can hope to accomplish by pressing the issue is a mediated settlement that isn't worth not having a job and burning a bridge this early in your career. Chances are, they won't be the only company that knows about it after the first association happy hour and it won't be your side of the story.

It's a heck of a lot easier to find a new job while you are still collecting a check.
cjo03
How long do you want to ignore this user?
AG
i'd be curious to know more about how this unfolded.

not seeking you to call out the company or identify yourself, but this is a very unique scenario for a student to find themselves in.. getting an offer 50% greater than expected is intriguing.

not necessarily a "no-win" scenario, considering you still have an acceptable offer on the table.. but it is tough to imagine a scenario where you push hard enough to get the company to agree to put the original offer back on the table.
JT05
How long do you want to ignore this user?
AG
Just for future reference, don't ever take options off the table until you are locked in. Keep things open as long as possible. Personally, I would not decline the other offers until I was signed on with the company I was choosing.

Given the current situation, I don't think it would hurt to contact the other companies that you previously turned down. Just tell them the situation has changed prior to starting and you were wondering if the offer was still open. If not, tell them you understand and appreciate their consideration.

Best of luck. This definitely sucks.
AgLA06
How long do you want to ignore this user?
AG
Definitely contact your previous offers. While not likely, there is a possibility someone backed out late or they had another spot open up.
JamesPShelley
How long do you want to ignore this user?
The advice is great: Follow up with those employers whose offers you declined. That's called mitigating your losses and, in the event you do choose to recover damages, you'd have a stronger leg upon which to stand.

If you find employment with an employer not among the declined... I'd do the math... pro-rate your losses at that $32K difference... and encourage them to do the right thing: pay you that difference. I doubt it would get close to mediation and, most likely, quickly would settle.

I wouldn't leave anything upon the table.

I'm not attorney. I did not complete the pursuit of a JD. Perhaps there's an attorney who might want to chime in?
IDAGG
How long do you want to ignore this user?
AG
Companies rescind accepted offers all the time when recessions hit. It sucks, but I think you have little leverage with this company. Either take the offer with the special consideration, or as others have suggested reach out to the other companies you liked better.

If you go all "legal" on this company and demand your $97k, they will either balk, or will hire you and you will be blackballed and probably laid off as soon as they can do so.
powerbelly
How long do you want to ignore this user?
AG
JamesPShelley said:

If you find employment with an employer not among the declined... I'd do the math... pro-rate your losses at that $32K difference... and encourage them to do the right thing: pay you that difference. I doubt it would get close to mediation and, most likely, quickly would settle.

I wouldn't leave anything upon the table.

I'm not attorney. I did not complete the pursuit of a JD. Perhaps there's an attorney who might want to chime in?
If an entry level candidate tried that with us we would just move on. He has zero leverage.
20ag07
How long do you want to ignore this user?
Your advice is consistently horrible on these type of matters.
cjo03
How long do you want to ignore this user?
AG
powerbelly51 said:

JamesPShelley said:

If you find employment with an employer not among the declined... I'd do the math... pro-rate your losses at that $32K difference... and encourage them to do the right thing: pay you that difference. I doubt it would get close to mediation and, most likely, quickly would settle.

I wouldn't leave anything upon the table.

I'm not attorney. I did not complete the pursuit of a JD. Perhaps there's an attorney who might want to chime in?
If an entry level candidate tried that with us we would just move on. He has zero leverage.
agree. not much leverage for an undergraduate. if i were a betting man, i would put the odds at 100% of them rescinding all offers the second any sort of legal talk comes up.
permabull
How long do you want to ignore this user?
AG
jamaggie06
How long do you want to ignore this user?
AG
This is one of those almost no-win situations. If you take the current offer, will you feel a bit cheated? Will there always be resentment? You and your employer should want you both to be on good terms. If fighting for a (perhaps, unwarranted) salary would cause resentment from the management, is it a good idea?

So, I guess my advice is, consider the current offer only if you won't be resentful over possible lost opportunities and if this genuinely a place you want to be. Sadly, the reality is, the likely only way you'll feel satisfied now is to alter your expectations to the current offer.

I mean, even if you accepted, if this in Texas, we are a right to work state. They very well may have decided to let you go nearly immediately to avoid any and all side issues that likely could arise, such as more experienced people making the se or less becoming disgruntled or even a potential discrimination suit if for example, they also hired a female employee with comparable background at the much lower rate.
Ulrich
How long do you want to ignore this user?
1. Hear them out. Figure out what the offer is. If you accept it, you'll go in with potentially a reputation for being understanding and your bosses may feel like they owe you a favor... but don't let yourself get run over later in your career because people think you're a pushover.

2. Do continue searching. If you can get a better offer, then take it. I doubt anyone will hold it against you.

3. Do NOT try to get legalistic on them, they'll just rescind the offer. Congratulations on the solid offer, but demanding 50% more than they want to pay is the kind of move that works for established rock stars, not fresh graduates. They tried to meet you halfway; now you accept or reject.
cjo03
How long do you want to ignore this user?
AG
p.s. Age should have nothing to do with it.
TheAggieInventor
How long do you want to ignore this user?
Thanks to all who posted. I do not in any care to get legal, and I fully understand my limited leverage position outside of them making an error and me trying to capitalize on that. I'm not entitled and would like to work for the company. The disappointment comes in the perception of the confidence I thought the company had in me and is now throwing me in with their undergrad pool after I even did a summer internship with them.

As an update they are having a recruiter sent 2 hours to A&M to have lunch and chat over the situation with me. Does this affect anyone's advice/mean anything significant?

Thanks again.
AgLA06
How long do you want to ignore this user?
AG
TheAggieInventor said:

The disappointment comes in the perception of the confidence I thought the company had in me and is now throwing me in with their undergrad pool after I even did a summer internship with them.



This should be the topic of the conversation. If you want something more, know what you think that number is ahead of time. Keep in mind an internship only gets you 3-6 months ahead of the other first time hires, but proving yourself worth asking back does mean something. 10% to 20% maybe? All they can say us no.

Bonuses are great and can be lucrative. However they can't be deemed the same as salary unless you're in sales since you don't have much control over it and gone in an instant.

Sending a recruiter is better than nothing I guess. They aren't the hiring manager and may not have any say in your package at all.
Maroonedinaustin
How long do you want to ignore this user?
AG
What did you think would be a reasonable offer before they offered?

I'd work with that as a negotiation tool. If they come up to a number you find fair then it's a win. Even better if they give you the one time payment for the error.
MemphisAg1
How long do you want to ignore this user?
AG
Stuff like this shouldn't happen, but it does occasionally. Sounds like an honest mistake and that they're trying to accommodate you (special bonus, etc.). Getting all legal and combative over it isn't the ticket to success.

If you decide to accept their offer, do it with a great attitude and put the past behind you. Get off to a fantastic start, work hard, and earn your way to the compensation you desire.

TheMasterplan
How long do you want to ignore this user?
TheAggieInventor said:

Thanks to all who posted. I do not in any care to get legal, and I fully understand my limited leverage position outside of them making an error and me trying to capitalize on that. I'm not entitled and would like to work for the company. The disappointment comes in the perception of the confidence I thought the company had in me and is now throwing me in with their undergrad pool after I even did a summer internship with them.

As an update they are having a recruiter sent 2 hours to A&M to have lunch and chat over the situation with me. Does this affect anyone's advice/mean anything significant?

Thanks again.
What that tells me is they seem to really care about keeping you and recognize their mistake. It could be anything from an honest mistake to possibly wanting to "keep the salaries even" to avoid HR/discrimination issues.

This isnt a terrible problem to have but I can understand the disappointment especially when you turned down other offers. I would do what others asked and contact the other companies and see what they say.

Take this as a learning opportunity and don't turn anything down until you sign that paper. Best of luck in your career.
falconace
How long do you want to ignore this user?
Sending the recruiter and offering the bonus is a good sign that they realize their error and want to keep you.

Playing hardball and trying to go after the $97k will not work in your favor. You do this wrong and you run a good shot of them thinking you're an entitled ******* and rescinding the offer.

Your tactics should be dependant upon the offers you turned down for this one. I'd approach it gently. If you turned down jobs that were $67k VS the $65k here, you seem only motivated by money. If you turned down jobs that were $80k, that's significant enough that folks will empathize. Be honest and tell the recruiter that as they could imagine, you're disappointed. You really enjoyed your internship and like the company/values/mission/etc. and we're thrilled that based on your performance during the internship you received such a strong offer and therefore didn't strongly consider other offers you received. While you understand that they can't pay you $97k and you're appreciative of the bonus offer, the other offers you received were in the $75-$80k range and you were curious if there was any flexibility in salary to get you closer to parity with the handful of other strong offers you received.

If you do that in a polite, professional, non entitled way, they'll walk away impressed at your maturity and thought process in handling the situation. If they have flexibility in salary (they may not due to legal concerns already mentioned) they may adjust your salary a bit closer to your other offers.

Right now folks at the company feel terrible for what happened and they are trying to do right within the confines of their authority/acceptance of legal risk. Depending on how you handle this, you start as someone they view as entitled and potentially a mistake hire or someone they think handled a tough situation with professional polish and maturity and they'll want you to succeed.
JamesPShelley
How long do you want to ignore this user?
I wasn't suggesting that the OP go "legalistic" right now and I apologize for not being clearer.

When the dust has settled, and OP is back at work... and if not at company A or B, or any of the companies where offers were declined... and there's money on the table... you go get it.

If a company thinks I'm an entitled ahole because I seek redress, I don't particularly care. Companies are driven by people and money. We.. people... employees... are our own companies contracting out our expertise to these companies.

Recently I helped a client recover $15,000 because of a reneged business promise. The employer said "no". I communicated with the company lawyer over a couple of months... settlement documents back and forth and, finally, the matter was concluded absent any legal agreement... no signature... my client retrieves her checks for the next 6 months.

If a company is making promises... making offers... you make choices and decisions on those promises and offers... the company pulls back... and you suffer financial consequences... yes... I'm going to get my money.

powerbelly
How long do you want to ignore this user?
AG
This is horrible advice. He is a new college grad. He has no expertise.

The money was never his. Period.

If he keeps pushing the issue it will be a detriment to his employement if he choses to accept the offer.
TheAggieInventor
How long do you want to ignore this user?
***IT IS FINISHED***

Spoke with the recruiter yesterday and they did come up a small percentage on salary but they expressed sincere apologies and I focused on using this opportunity to show my understanding and maturity. I only requested that the offer be in writing and sent to me and left on a good note after she strongly expressed they want me there. I appreciate all the advice but to me the company and opportunity is worth more than a tainted reputation. Thanks again
powerbelly
How long do you want to ignore this user?
AG

Quote:

I appreciate all the advice but to me the company and opportunity is worth more than a tainted reputation.
JamesPShelley
How long do you want to ignore this user?
TheAggieInventor said:

I only requested that the offer be in writing and sent to me
Congratulations on the new job. Glad to hear everything worked out in your favor.
TheMasterplan
How long do you want to ignore this user?
TheAggieInventor said:

***IT IS FINISHED***

Spoke with the recruiter yesterday and they did come up a small percentage on salary but they expressed sincere apologies and I focused on using this opportunity to show my understanding and maturity. I only requested that the offer be in writing and sent to me and left on a good note after she strongly expressed they want me there. I appreciate all the advice but to me the company and opportunity is worth more than a tainted reputation. Thanks again
Not finished yet until it's in writing and you've signed.

Sounds like a good outcome is going to be reached though.
NoHo Hank
How long do you want to ignore this user?
AG
Couple of thoughts on this, even though I understand that you're wrapping things up.

None of the below constitutes legal advice, but rather just advice from a fellow ag.

First off, you likely did the right thing. Texas is an at will employment state. That means you can be hired and fired for no reason at all. One valid reason may be that they don't want to pay you what they promised. So, they could easily have walked away had you pressed it and asked for 25k more. The only exception to this would be had they made a promise of a signing bonus to you, you accepted the offer in writing, and then incurred reasonable expenses (like moving to a new city) in reliance of the job. You could likely get the money back. But a verbal offer offer made and withdrawn likely wouldn't be a contract, and even if it was, they could terminate due to at will status and you'd be no better off.

Secondly, it sounds like the company and opportunity is worth more than the money. For others, my approach would be to look at your next best offer, and decide how much extra money the opportunity is worth. If someone else offered 80k, these guys are at 65k, and you're giving them a 10k discount, I'd go back to the first company and say, look I turned down an 80k position to work for you. I'm not going to ask for 80k, because I'd rather work for you anyway, but here's what I think is reasonable. Shows you're trying to work with them in spite of their mistake, shows you aren't a pushover to your new boss (who really doesn't care what the salary number is so long as it is within budget) and gets you a little extra cash in your pocket. Key thing is figuring out your walk away point and being ready to exercise that. If there isn't one (meaning you're going to take the 65k they offer you already) then no harm in trying to squeeze a little better deal out of the process.

Just my two mostly useless cents on a closed subject.
Refresh
Page 1 of 1
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.