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Case Study: Talk About Mixed Messages!

Jim has accepted a position with Mega Corporation. The firm's recruiter had emphasized Jim's great potential with the firm, as did everyone who met with Jim when he visited the company.

A week later an unexpected headline appears in the press—"Mega Corp. merges with Super Mega Inc. and will layoff 2,000 'redundant' workers. Mega has decided to lay off workers to avert impending bankruptcy." Jim calls the firm and the recruiter assures him that everything is just fine and reconfirms that Jim has great potential with the new company.

Jim remains quite shaken and goes to his career services director. He says that he is considering reneging on his acceptance, given the new, distressing information in the press.

Questions to consider:

  1. Put yourself in the shoes of the career services director (read: what would you like the career services director to tell Jim if this was your company), what do you say to Jim?

  2. What are the ethical obligations of the company regarding its offer to Jim and the information given to Jim during the interview about the company?

  3. What if, a month before Jim was to commence employment, you (the recruiter) are told that Jim's position has been "re-engineered" out of existence. What are your obligations to Jim? Does it make any difference if he has relocated? Does it make a difference that Jim will be graduating in 2 weeks?

Steps to Resolution

1. What relevant facts are known?

a. Jim accepted the position one week before the lay-offs were announced.
b. The recruiter assured him that "everything is just fine", i.e., the position was not in jeopardy.
c. Jim is considering reneging and seeks guidance from his career services' director.

However, we do not know the following:

d. Is the reported information accurate?
e. What is Mega Corp.'s history in regard to layoffs and how they have handled them?
f. Are the layoffs in Jim's division/unit, or similar positions?

2. Identify the NACE Principles in question.
a. Career Services # 10—"Career services professionals will advise students about their obligations in the recruitment process and establish mechanisms to encourage their compliance. Students' obligations include providing accurate information; adhering to schedules; accepting an offer of employment in good faith; notifying employers on a timely basis of an acceptance or nonacceptance and withdrawing from the recruiting process after accepting an offer of employment; interviewing only with employers for whom they are interested in working and whose eligibility requirements they meet; and requesting reimbursement of only reasonable and legitimate expenses incurred in the recruitment process."
b. Employment Professionals #3Employment 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."
c. Also, according to the Position Statement on Rescinded and Deferred Offers by the NACE Principles for Professional Conduct Committee, "if the offer must be revoked, it is strongly encouraged that assistance to the affected candidates be made which may include, but is not limited to:

  1. Reimbursement for expenses incurred n their acceptance of employment, such as travel and relocation expenses.
  2. Provision for short-term financial assistance.
  3. Services to aid the candidates in securing other employment."

3. Put yourself in the shoes of the career services director (read: what would you like the career services director to tell Jim if this was your company), what do you say to Jim?
Based upon the facts as presented in the above scenario, and consistent with "Career Services Principle #10," the career services director should advise Jim against reneging on the offer as a result of information reported in the media. If the recruiter has provided assurances that "everything is just fine", until that fact is known to be untrue, the student has an obligation to accept this offer in good faith. The career services director should also offer to contact the company to verify the reported layoffs and that Jim's job is not in jeopardy.

4. What are the ethical obligations of the company regarding its offer to Jim and the information given to Jim during the interview about the company?
As stated in NACE "Employment Professionals" Principle #3; "… supply accurate information on their organization ……. Employing organizations are responsible for the information supplied and commitments made by their representatives. If conditions change, ……. the employing organization will pursue a course of action for the affected candidate that is fair and equitable."

5. What if, a month before Jim was to commence employment, you (the recruiter) are told that Jim's position has been "re-engineered" out of existence. What are your obligations to Jim? Does it make any difference if he has relocated? Does it make a difference that Jim will be graduating in 2 weeks?
If the position that Jim was to assume in one month has been eliminated, the company has an obligation to inform him as such immediately and to provide assistance and/or compensate the candidate with the following actions:


NACE is a proud founding member of International Network of Graduate Recruitment and Development Associations (INGRADA).
NACE is a founding member of International Network of Graduate Recruitment and Development Associations (INGRADA).