Fifty students from Clinton University class of 2001 received and accepted offers from Best & Brightest, Inc (B&B, Inc) in January 2001. In July 2001, 25 of them were informed that they would be delayed until the Summer of 2002 or the Fall of 2002. B&B, Inc. offered "bonuses" totaling as much as $11,000 and a month's salary as compensation for their extended delayed starting dates. In May 2002, the date was pushed further into the future with a tentative start date of September 30, 2002 for some while others were pushed back until January 2003. The career services director heard from a Sally Smart, a May 2001 graduate, that she was delayed until 2003. Sally told the career services director that she was notified by phone, with hard copy to follow. The graduate who contacted career services accepted the bonuses and month's salary last summer. She has been volunteering at a cancer hospice all year and has found it to be rewarding. Now she wanted to know if she should wait it out any further or commence her job search. She also wanted to know if she has to tell B&B, Inc. that she is going to look for another job opportunity.

Questions to consider:

1. What advice can you give the graduate? Should the graduate return the bonus and month's salary paid to her?
   
   
2. Were the company's actions ethical?
   
   
3. What should the company do at this juncture?
   
   
4. Suppose the student came to career services in January 2002 before notification of the second delay, would your advice to the student be any different?

Steps to Resolution

1. What relevant facts are known?

a. Twenty-five students accepted offers in Jan. 2001 and these were twice delayed - first in July 2001 for 12-16 mos., and secondly, in May 2002 for up to a total of 2 years.
b. Students were compensated with bonuses as high as $11,000 and a month's salary for their deferrals.
c. The career services office was contacted by Sally Smart, one of the deferred students, who sought advice regarding whether she should stay in deferral status and if she chose not to, what she should tell the company.
d. Sally has considerable 'opportunity losses' because she has foregone campus interviewing in spring 2001 and she has been off the market for been off the market for 1 ½ years already and two full years if she continues in deferral status.

However, we do not know the following:

e. Did B&B, Inc., stay in regular contact with Sally?
f. Did B&B, Inc. inform the career services office of the deferrals and provide them with regular updates?
g. Was Sally compensated for the full $11,000 possible?
h. What terms did the company establish regarding repayment of the bonuses and monthly salary if the students chose not to stay in deferral status?

2. Identify the NACE Principles in question.

a. Employer Principle #3—"Employment professionals will supply accurate information on their organization and employment opportunities. Employing organizations are responsible for information supplied and commitments made by their representatives. If conditions change and require the employing organization to revoke its commitment, the employing organization will pursue a course of action for the affected candidate that is fair and equitable."
b. In addition, according to the Position Statement on Rescinded and Deferred Employment Offers by the NACE Principles for Professional Conduct Committee, "if employers opt to delay the candidate's starting date by more than three months in lieu of revoking the job offer, they should maintain regular contact with the candidate before the start date and provide them with appropriate short-term financial assistance."

3. What advice can you give the graduate? Should the graduate return the bonus and month's salary paid to her?

Since the delayed offer to Sally Smart has now exceeded the original Fall 2002 start date, the candidate is under no further obligation to the employer. She has been compensated as a result of waiting, as specified within the terms of the original delayed offer. However, it is still May 2002 and she should be up front with B&B, Inc. about her consideration to reactivate her job search. It is really the candidate's decision as to "wait it out any further". However, nineteen months is a long time to delay one's job search, and the pattern for continued delays described above does not bode well. As a career services professional, I might advise her to commence job search activity at this time, and advise the employer as to her concerns and actions.

4. Were the company's actions ethical?

Yes and no. Yes, in that the company provided a "good faith" initial compensation for those candidates "willing" to accept a delayed offer. However, it was not entirely proper to be "non-specific" about start dates, i.e…… "Summer of 2002 or the Fall of 2002" and later, "September 30, 2002 (still Fall 2002) to January 2003". It is also not proper for the company to continue to drag out this situation over such an extended period of time; in this case seventeen months. Additionally, given this extended delay, it is questionable whether the bonus of $11,000 and the one month's salary is fair recompense considering her significant opportunity losses.

5. What should the company do at this juncture?

Offer any reasonable steps to assist those candidates still awaiting employment with B&B Inc. to effectively reactivate their job search.

6. Suppose the student came to career services in January 2002 before notification of the second delay, would your advice to the student be any different?

With respect to the terms of the original delayed offer, yes—the candidate would be under an obligation to return any pro-rated amount of the bonus, assuming they either accepted binding employment with another company and/or formerly withdrew their acceptance of the B&B, Inc. offer.