1. I do not think that cancelling job offer will affect the brand image of any company if this is a one of case due to slowdown. However if this continues for a few years repeatedly then the potential damage can be possible.
2. It is normal for companies to offer an "Intent of offer" to students hence if Infosys just made an Intent to offer then they are not obliged to offer jobs - This can be pulled back any time before the prospect employee signs the offer letter. I completely agree with Infosys's spokesperson.
3. As a placement cordinator I would have asked students who are willing to accept the offer to show the "intent" to accept the "intent to offer" so that the respective offer letter can be secured. I would have asked the employer to send the offer letter to the students willing to take up the offer. Those note willing to take up the offer could be channelised to other interviews. In this situation I would have looked at companies in government sector and as well as other developing economies Brazil, China and Africa. Alternately would have negotiated with Infosys to revoke the cancellation. I would have reached out to the strong allumni of IIT Mumbai for their support so that the students can secure their jobs.
4. I have never gone through any such situation. My friends have also never gone through any such situation. I would have made sure that I had atleast one offer in hand and would have signed the papers at the earliest. After signing the papers, I would have continued to look out for a still better career opportunity.
Tuesday, June 29, 2010
Intent of Offer Vs Offer
As the circumstance of economic slowdown, many things have to be taken care off as different organization adopting different new approaches to sustain the situations. In this regard I agree with the statement that "Cancelling the Job Offers" at IIT Mumbai would affect the "The Best Employer Brand Image" of the firms. As a renowned IIT institution the placement policy has to be clear about the campus recruitment because as a organization they produces the best quality of resource which is not easy to match and it has to be protected from all odds. The letter of regret from Infosys was real shock. As it says ‘‘Please inform the students to look for other options/alternatives and not to expect any employment from us,’’ it means given an opportunity Infosys is in an advantage position rather than best brains of IIT. The Intent of Offer is an intention of offering a job again it has to be more clearly defined as to how both the parties will be attached to their understanding; i.e. to make it an offer, else both can gaze for some superior offers. I would say with the best quality of brains, IIT Mumbai should go for healthier bargains from intent of offer to make it an offer where the institutions cum students moral will be high.
Against the 2nd Question - Yes I agree with Infosys Spokesperson's statement that Infosys had not really cancelled any job offers since what they had given to the students was only "Intent of Offer" and this was possible as per the practices / approaches taken in the previous years. Given a chance Infosys has used its opportunities and having clear escape from the situation to make it an offer.
If I were the placement coordinator at IIT, Mumbai, I would have redesigned the campus recruitment policy with new timelines which would come out from a joint effort of the senior management of the institutions and the organizations interested to hire our best brains.
Yes, I had experienced myself while I got an intent of offer to join the Singapore based IT company. As Mr. Rahman had explained that was the scenario i.e. once I reach there with all my documents it would have been an offer. In the mean time the 11/10 episode explode all my expectation. Intent of Offer was never an offer. Still it took time to believe with the prevailing situation and there were no alternatives except to wrestle for next best offer.
Monday, June 28, 2010
Intent of Offer vs. offer
Literally we can say the Intent of offer is the written statement expressing the intention of the undersigned to enter into an agreement. It does not have any legal obligations. It only shows that the company is interested to give employment to the person... sometimes subject to other action being taken.
It may happen that due to some unavoidable circumstances, the intent of offer cannot become a formal offer letter. And that is what is happened in the case of Infosys. Though it is a shock for the IIT freshers when they received the letter of regret from Infosys mentioning the students to look for other options/alternatives and not to expect any employment from them,
1. I do not think it affects the reputation of the company as it is a crystal clear statement that Infosys made
‘‘Please inform the students to look for other options/alternatives and not to expect any employment from us,’’ said the letter from the company which is now headed by Nandan Nilekani.
Without hiding or delaying the process so that the students can go ahead with other company’s offer. When contacted in Bangalore, Infosys denied that it had cancelled any job offers. ‘‘No offer has been cancelled. The initial letter was intent of offer. However, we can’t confirm a date when we will be able to recruit. In the meantime, they are free to pursue other careers or look for other option,’’ said the company’s spokesperson
2. I agree with the Infosys’s spokesperson statement that Infosys not really cancelled any job offers as they have not given any offer letter to the students. It was only intent of offer which was given to the students.
3. Though it takes a bit long time to place all those students, I would have had a talk with the Infosys Recruiters and had asked them for the tentative timeline for taking action to recruit the students when the market condition will be normal.
It may happen that due to some unavoidable circumstances, the intent of offer cannot become a formal offer letter. And that is what is happened in the case of Infosys. Though it is a shock for the IIT freshers when they received the letter of regret from Infosys mentioning the students to look for other options/alternatives and not to expect any employment from them,
1. I do not think it affects the reputation of the company as it is a crystal clear statement that Infosys made
‘‘Please inform the students to look for other options/alternatives and not to expect any employment from us,’’ said the letter from the company which is now headed by Nandan Nilekani.
Without hiding or delaying the process so that the students can go ahead with other company’s offer. When contacted in Bangalore, Infosys denied that it had cancelled any job offers. ‘‘No offer has been cancelled. The initial letter was intent of offer. However, we can’t confirm a date when we will be able to recruit. In the meantime, they are free to pursue other careers or look for other option,’’ said the company’s spokesperson
2. I agree with the Infosys’s spokesperson statement that Infosys not really cancelled any job offers as they have not given any offer letter to the students. It was only intent of offer which was given to the students.
3. Though it takes a bit long time to place all those students, I would have had a talk with the Infosys Recruiters and had asked them for the tentative timeline for taking action to recruit the students when the market condition will be normal.
Sunday, June 27, 2010
Letter of Intent Vs offer
I think I will start to answer this with Q-2 where the Infosys Spokesperson statement says that they have not cancelled any job offer since the student had only Intent of offer. With this limited information, it will be unfair to comment on this as there is no clarity on what was the content of “Intent of offer”. From the debriefing of the situation, it is clear that the both the placement coordinator, as well as the students, were also under the impression that Intent of offer was job offer, Infact I am still confused with offer letter and appointment letter- Can companies reject offer letter as well, till some one gets an appointment letter or letter of appointment.
In my opinion, Infosys is hiding behind, paraphrasing of the words rather than ethical issues. In usual circumstances Infosys would have taken these students into their sytem. However as the students are inexperienced as well as the Placement coordinator, there was no clarity offered by Infosys, for their meaning of Intent of offer nor students and the placement coordinator proactively. There is a clear break down of communication and understanding and students are getting played in the hands of Infosys selection of words.
So morally speaking Infosys has not done an ethical job by cancelling the Intent of offer with an assumption that Infosys has not clearly stated the meaning of Intent of offer.
Considering Q1 – with this “one off” incident it will not affect Infosys “Best Employer Brand Image” But for few successive years there will still be a “but” in students Mind in IIT Mumbai only. Infact these issues are neither reported by Institutes nor there are any legal implication and hence these ratings are not effected much by these incidents. Students should be more cautious to accept offers and must read between the lines of any offer made to them before they shut all other option and seek clarification and assurance from prospective employees.
In case if I am the placement coordinator at IIT Mumbai- I will take up the matter of with senior officials of Infosys and ask for time lines of action or possibilities and options available with them as IIT Mumbai is as premier as Infosys. There needs to be evaluation of alternate recruiter if possible and see how fast maximum no of students can be engaged and empathize with the students.
Yes I had gone through this phase myself with Telco, who are Tatamotors now. They had selected 10 students from OUR Institute as Management trainee, of which I was one of the candidate, which was considered as coveted job offer that time, but finally taken only one person and cited the reason that Lucknow Plant has been deferred for commissioning and hence cancelling all “offers”. Well as an Individual it’s a long battle to fight and we accepted this and moved on with the alternatives we had in our hand or created alternatives to tide over this crisis.
In my opinion, Infosys is hiding behind, paraphrasing of the words rather than ethical issues. In usual circumstances Infosys would have taken these students into their sytem. However as the students are inexperienced as well as the Placement coordinator, there was no clarity offered by Infosys, for their meaning of Intent of offer nor students and the placement coordinator proactively. There is a clear break down of communication and understanding and students are getting played in the hands of Infosys selection of words.
So morally speaking Infosys has not done an ethical job by cancelling the Intent of offer with an assumption that Infosys has not clearly stated the meaning of Intent of offer.
Considering Q1 – with this “one off” incident it will not affect Infosys “Best Employer Brand Image” But for few successive years there will still be a “but” in students Mind in IIT Mumbai only. Infact these issues are neither reported by Institutes nor there are any legal implication and hence these ratings are not effected much by these incidents. Students should be more cautious to accept offers and must read between the lines of any offer made to them before they shut all other option and seek clarification and assurance from prospective employees.
In case if I am the placement coordinator at IIT Mumbai- I will take up the matter of with senior officials of Infosys and ask for time lines of action or possibilities and options available with them as IIT Mumbai is as premier as Infosys. There needs to be evaluation of alternate recruiter if possible and see how fast maximum no of students can be engaged and empathize with the students.
Yes I had gone through this phase myself with Telco, who are Tatamotors now. They had selected 10 students from OUR Institute as Management trainee, of which I was one of the candidate, which was considered as coveted job offer that time, but finally taken only one person and cited the reason that Lucknow Plant has been deferred for commissioning and hence cancelling all “offers”. Well as an Individual it’s a long battle to fight and we accepted this and moved on with the alternatives we had in our hand or created alternatives to tide over this crisis.
Friday, June 25, 2010
INTENT OF OFFER Vs OFFER
Intent of offer shows the primary state of offer which shows only the interest of company for holding the candidate with no conditions so that he may not further searching jobs anymore.
But in case of offer letter there is a certain terms and conditions for the candidate by the employer.Again if the candidate will be satisfy with that condition and sign it then it turns to an agreement or contract.
1)yes by cancelling the job offers would reflect the brand image of company in future,but in this case whole wrld is in economic crises, so it may not reflect to that extent as in normal case but to avoid it company could extent the joining date for andidate.
2)Here if we logically infosys spoke person was right as the term "INTENT OF OFFER" but i think it should be clearly mentioned at that letter or at the time of recruitment,so thet there will be a transperant to all.
3)In that case i would have first gathered the information about economy history as well as placement history,so that we can compare rise/fall of economy VS rate of placement in that company.
Another thing i would suggest company instead of cancelling the job offer it will be better for both to extent the joining date and which can be batch wise.Lets take an example:- if there are 100 candidate from different university like IIT,NIT,Govt College,Private College etc.so w can divide it into some groups of (say 30 no.)from IIT and NIT candidate those who join after 4 months later,govt college group (say 30 no)may be after 8 month later and rest may be 12 month later...like wise...
Also we can suggest the comp. by an alternative of instead of cancelling job offer thay can reduce the anual compensation.
But in case of offer letter there is a certain terms and conditions for the candidate by the employer.Again if the candidate will be satisfy with that condition and sign it then it turns to an agreement or contract.
1)yes by cancelling the job offers would reflect the brand image of company in future,but in this case whole wrld is in economic crises, so it may not reflect to that extent as in normal case but to avoid it company could extent the joining date for andidate.
2)Here if we logically infosys spoke person was right as the term "INTENT OF OFFER" but i think it should be clearly mentioned at that letter or at the time of recruitment,so thet there will be a transperant to all.
3)In that case i would have first gathered the information about economy history as well as placement history,so that we can compare rise/fall of economy VS rate of placement in that company.
Another thing i would suggest company instead of cancelling the job offer it will be better for both to extent the joining date and which can be batch wise.Lets take an example:- if there are 100 candidate from different university like IIT,NIT,Govt College,Private College etc.so w can divide it into some groups of (say 30 no.)from IIT and NIT candidate those who join after 4 months later,govt college group (say 30 no)may be after 8 month later and rest may be 12 month later...like wise...
Also we can suggest the comp. by an alternative of instead of cancelling job offer thay can reduce the anual compensation.
Intent of Offer Vs Offer
According to my view, intent of offer is different from offer. Intent of offer is just an intention to offer not an offer in actual sense. Although, it is a letter or some type of a document, yet it is not legally enforceable in the court of law, in the event that the intent is not carried out which means that if the candidate does not join or if the employer on or before the date of joining dissolves the said position. So, Intent of offer can be seen as a letter or document stating an employer’s willingness or intention to assign the selected candidate to a certain post in the organisation but there is no guarantee that the appointment would be successfully carried out. As of my personal opinion a letter of intent is provided to candidates in the first round of selection and later those candidates are again throughly cross checked and most competent candidates are given the actual offer. Offer is a kind of legal contract drawn between the employer and the employee based on certain terms which the offeror( employer in this case ) is willing to be bound. Offer is an indication of definite intention by one person (offeror) to another person (offeree) clearly specifying the offeror’s willingness to hire the candidate without any further negotiation. It is legally binding on the offeror. One most important distinction between intent of offer and offer is that an offer gives a mandatory date of joining which is not guaranteed in an intent of offer.
As an example, one of my friends had gone through an experience with Yes bank. Yes bank had shortlisted candidates to be placed from a b-school and the candidates were given intent of offer, but on a later date it didn’t offer the candidates any offer letter as to guarantee joining. Intent of offer is nothing unethical, the world itself has become so much competitive that everyone needs the cream of the cake to ensure that their company’s performance is the best with best minds working for them.
Intent of Offer Vs Offer
Hi every one,
I quite agree with the information from Mr. Satya Sahoo as highly appropriate, it speaks more on organization ethics. Companies are doing their best to deal with changing scenario and trying to save their brand image. Infosys may be technically and legally right, but it is ethically wrong. They tend to present themselves as unaffected by the slowdown when they send the offer letters. They go ahead with fresh recruitments in the first place when those recruited from the last batch are simply sitting on the bench. This approach of course spoils the brand image when they send regret letters to prospective students to look for other options after completing the final selection process and providing offer letters. In future, when ever Infosys will go for recruitment specifically from IITs, the students may not be interested to join with.
In the statement, where Infosys spokesperson says, Infosys had not really cancelled any job offers since what they had given to the students was only "Intent of Offer", shows that the company in one way exploits the mass with this power. Offer letter in general speaks about the faith and trust from both sides.
The statement made by Tata Infotech Managing Director, Nirmal Jain in this respect makes some sense of hope to the prospective students. In fact it seems that they have realized the over estimation of recruitment with respect to the current slowdown and have asked couple of students to look around as the current position is very tight. Although they have deferred 11 jobs, they have also accepted the gravity of slowdown crisis and promised the students that as and when things improve they would be the first people to get the positions.
As a placement coordinator, I would also prefer to most effective methods of ensuring good placement experience by achieving optimum match with the selective employer having sound past records with respect to healthy HR policy. During economic recession, it would be preferred through conducting regular survey of employers and students.
I quite agree with the information from Mr. Satya Sahoo as highly appropriate, it speaks more on organization ethics. Companies are doing their best to deal with changing scenario and trying to save their brand image. Infosys may be technically and legally right, but it is ethically wrong. They tend to present themselves as unaffected by the slowdown when they send the offer letters. They go ahead with fresh recruitments in the first place when those recruited from the last batch are simply sitting on the bench. This approach of course spoils the brand image when they send regret letters to prospective students to look for other options after completing the final selection process and providing offer letters. In future, when ever Infosys will go for recruitment specifically from IITs, the students may not be interested to join with.
In the statement, where Infosys spokesperson says, Infosys had not really cancelled any job offers since what they had given to the students was only "Intent of Offer", shows that the company in one way exploits the mass with this power. Offer letter in general speaks about the faith and trust from both sides.
The statement made by Tata Infotech Managing Director, Nirmal Jain in this respect makes some sense of hope to the prospective students. In fact it seems that they have realized the over estimation of recruitment with respect to the current slowdown and have asked couple of students to look around as the current position is very tight. Although they have deferred 11 jobs, they have also accepted the gravity of slowdown crisis and promised the students that as and when things improve they would be the first people to get the positions.
As a placement coordinator, I would also prefer to most effective methods of ensuring good placement experience by achieving optimum match with the selective employer having sound past records with respect to healthy HR policy. During economic recession, it would be preferred through conducting regular survey of employers and students.
Thursday, June 24, 2010
INTENT OF OFFER V/S OFFER
1. Do you think "Cancelling the Job Offers" at IIT Mumbai would affect the "The Best Employer Brand Image" of these firms and thereby reduce their competitive advantage?
Few of these companies listed here advertise in the daily newspapers clearly mentioning that people need to have a consistent academic record throughout 10th, 12th, Graduation and post Graduation. So what are these companies trying to achieve take the best and trying to give the good. Really not taking the good and giving the best. So use of such statements in the newspaper itself clearly indicates that these companies do not really worry about their Brand image by giving such Ads. Imagine if every company will adopt this policy so where will the other students who are/were not able to have a good academic record because of various situations they faced will end up with, does that mean they don’t have a bright future/they cannot perform better. By joining these companies the best are modified to good. According to me these companies do not have a brand image and they are exploiting the resources to the best of their interest.
2. Do you agree with Infosys Spokesperson's statement that Infosys had not really cancelled any job offers since what they had given to the students was only "Intent of Offer"?
But definitely there will be certain sections or clauses listed in the intent of offer that the intent of offer is cancelled if you fail meet the below mentioned conditions. But then it does not mention anything about the what if the Intent of Offer is cancelled by the company itself. So that is something should be thought of. Also in a growing economy like India we/students should really not worry about such issues, because there is always a better tomorrow. But companies are making advantage of this attitude of the students and exploiting us.
3. If you were the placement coordinator at IIT, Mumbai, what would you do to resolve the placement issues present in the above case?
First thing prior to the Intent of Offer I would have negotiated for a clause mentioned in the previous point and ensured that it is part of the Intent of Offer. Post this if such a situation arises would have tried my best to make them responsible for the action come to the negotiation table and tried to mitigate so that at least students get some exposure in terms of training etc.
4. Have you or any of your friends gone through similar experience where the job offers or intent of offer has been cancelled by the prospective employer? If so, how did you or your friend handle the issue?
Yes I had come across this kind of situation twice in the same company few years ago while recruiting two resources. I handled in such a manner that finally the resources were absorbed into the company. Like I started speaking about brand reputation, ensured I escalate to right line for action, told them the other end the resource is already put his papers and is about to join. Put forth their strengths in these areas proved that these resources will be a asset to the organization.
Few of these companies listed here advertise in the daily newspapers clearly mentioning that people need to have a consistent academic record throughout 10th, 12th, Graduation and post Graduation. So what are these companies trying to achieve take the best and trying to give the good. Really not taking the good and giving the best. So use of such statements in the newspaper itself clearly indicates that these companies do not really worry about their Brand image by giving such Ads. Imagine if every company will adopt this policy so where will the other students who are/were not able to have a good academic record because of various situations they faced will end up with, does that mean they don’t have a bright future/they cannot perform better. By joining these companies the best are modified to good. According to me these companies do not have a brand image and they are exploiting the resources to the best of their interest.
2. Do you agree with Infosys Spokesperson's statement that Infosys had not really cancelled any job offers since what they had given to the students was only "Intent of Offer"?
But definitely there will be certain sections or clauses listed in the intent of offer that the intent of offer is cancelled if you fail meet the below mentioned conditions. But then it does not mention anything about the what if the Intent of Offer is cancelled by the company itself. So that is something should be thought of. Also in a growing economy like India we/students should really not worry about such issues, because there is always a better tomorrow. But companies are making advantage of this attitude of the students and exploiting us.
3. If you were the placement coordinator at IIT, Mumbai, what would you do to resolve the placement issues present in the above case?
First thing prior to the Intent of Offer I would have negotiated for a clause mentioned in the previous point and ensured that it is part of the Intent of Offer. Post this if such a situation arises would have tried my best to make them responsible for the action come to the negotiation table and tried to mitigate so that at least students get some exposure in terms of training etc.
4. Have you or any of your friends gone through similar experience where the job offers or intent of offer has been cancelled by the prospective employer? If so, how did you or your friend handle the issue?
Yes I had come across this kind of situation twice in the same company few years ago while recruiting two resources. I handled in such a manner that finally the resources were absorbed into the company. Like I started speaking about brand reputation, ensured I escalate to right line for action, told them the other end the resource is already put his papers and is about to join. Put forth their strengths in these areas proved that these resources will be a asset to the organization.
INTENT OF OFFER V/S OFFER
1)In my view cancelling the job offers will not affect either the company's brand image or its competitive advantage partly because the intent of offer does not bind the employer legally,as intent of offer do not result in a contract.It is only a step prior to actual offer.It may be with the objective of studying or analysing the available prospective candidates for the organisation.
2)Yes the spokesperson was very right while he made the statement that their organisation has not cancelled any offers rather it has cancelled the intent of offer which is well within the boundaries of discretion of any organisation.By making an advertisement the employer has intention to analysize the availability of resoures instead of offering the job.
3)The job of placement officer is to ensure the conduct of a selection process for the candidates offering thier willingnesss to be employed.In the given case the placement officer has a duty to negotiate with the organisation namely infosys to shortlist the candidates for the selecton process.The candidates are also to be counselled as regards mere eligibility does not gurantee the job unless a selection process is undertaken.
4)This type of situations help to educate myself as regards the subtle difference between intent of offer and offer.It also helps me to remain updated regarding current issues and ways and means to handle them.
Wednesday, June 23, 2010
Intent of Offer vs Offer - Sign of changing times
The signs of structural transformation in Indian economy are showing; Companies and People are doing their best to deal with changing scenarios, trying to stay afloat and making the best out of the given situation. Its like engagement vs marriage; the former an expression of intention and the latter an act of commitment with responsibilities and duties on either side, with legal sanction.
An Offer of Intent reflects the intention for employment prospects in future, in general terms, without specific details of job, employment rules and compensation. By this the Company, books in advance prospective candidates, as per its strategic plans and roll-out of its business, whom it can quickly bring into its rolls and if at all required, without any legal obligation or enforceability. For the prospective candidates, other than the comfort of an assurance, which is in writing, there is precious little. For employed candidates, they can hardly use this to bargain with their present employers, without anything specific, like responsibilities and compensation in the Intent of Offer.
Offer letter, on the other hand is specific with all details wrt job, position, rules, entitlements and compensation. Its like the Company awarding contract to a winner. When accepted in writing by the prospective candidate, it becomes a commitment by both parties for fulfillment of terms and conditions in the Offer Letter and becomes legally enforceable.
Generally, Companies with clear Project needs and Business plan simply go in for the Offer Letters; whereas as Companies not having a clear idea of the future in terms of securing contacts, quantum of business, bench strength requirements and operating in stiff competitive markets generally tend to hedge themselves by the Intent of Offer.
It would be win-win for both, if Intent of Offer equals Letter of Offer.
Yes, it would affect the Company's image, if such policy is pursued regularly by any Company. It would also lead to the erosion of its competitive advantage gradually as it would be avoided by the best talent successively. However, if it is for external reasons like slowdown in economy and lack of business, then everybody understands that certain years are one-off cases.
Infosys may be technically and legally right, but its wrong. A company can hedge itself legally, but not against negative opinion from the prospective candidates.
As a placement coordinator, I am expected to have good background knowledge of the Companies and their business (past and current) and the overall state of the sector vis-a-vis economy. I should have seen it coming and certainly stopped/ not risked the Intent of Offer, knowing what it was. Would have invited more "old economy" companies for the year, as times demanded it, even though it would mean lesser placements for the year. I would play safe than sorry under the economic environment.
An Offer of Intent reflects the intention for employment prospects in future, in general terms, without specific details of job, employment rules and compensation. By this the Company, books in advance prospective candidates, as per its strategic plans and roll-out of its business, whom it can quickly bring into its rolls and if at all required, without any legal obligation or enforceability. For the prospective candidates, other than the comfort of an assurance, which is in writing, there is precious little. For employed candidates, they can hardly use this to bargain with their present employers, without anything specific, like responsibilities and compensation in the Intent of Offer.
Offer letter, on the other hand is specific with all details wrt job, position, rules, entitlements and compensation. Its like the Company awarding contract to a winner. When accepted in writing by the prospective candidate, it becomes a commitment by both parties for fulfillment of terms and conditions in the Offer Letter and becomes legally enforceable.
Generally, Companies with clear Project needs and Business plan simply go in for the Offer Letters; whereas as Companies not having a clear idea of the future in terms of securing contacts, quantum of business, bench strength requirements and operating in stiff competitive markets generally tend to hedge themselves by the Intent of Offer.
It would be win-win for both, if Intent of Offer equals Letter of Offer.
Yes, it would affect the Company's image, if such policy is pursued regularly by any Company. It would also lead to the erosion of its competitive advantage gradually as it would be avoided by the best talent successively. However, if it is for external reasons like slowdown in economy and lack of business, then everybody understands that certain years are one-off cases.
Infosys may be technically and legally right, but its wrong. A company can hedge itself legally, but not against negative opinion from the prospective candidates.
As a placement coordinator, I am expected to have good background knowledge of the Companies and their business (past and current) and the overall state of the sector vis-a-vis economy. I should have seen it coming and certainly stopped/ not risked the Intent of Offer, knowing what it was. Would have invited more "old economy" companies for the year, as times demanded it, even though it would mean lesser placements for the year. I would play safe than sorry under the economic environment.
Tuesday, June 22, 2010
Intent of Offer Vs Offer
Good Morning
I can share my previous company experience. I was working for multinational retial chain based in Middle East they were having this practice of issuing letter of intent to candidates after the interview for the local as well as overseas candidates. Once the candidates visa processing and all other formalities were over and the candidates landed at the respective country to join after joining they used to give him offer letter which candidates signed and one copy goes to candidates personal file. I think this is an international practice just to keep the selected candidates on hold or they can keep the candidates reserve for them so that candidate will not look for anyother job oppertunities. If everything goes well then candidates will join the organization or else they can say to the candidates that we are sorry we do not have opening.
I can share my previous company experience. I was working for multinational retial chain based in Middle East they were having this practice of issuing letter of intent to candidates after the interview for the local as well as overseas candidates. Once the candidates visa processing and all other formalities were over and the candidates landed at the respective country to join after joining they used to give him offer letter which candidates signed and one copy goes to candidates personal file. I think this is an international practice just to keep the selected candidates on hold or they can keep the candidates reserve for them so that candidate will not look for anyother job oppertunities. If everything goes well then candidates will join the organization or else they can say to the candidates that we are sorry we do not have opening.
Letter of Intent vs Offer
Though the situation is very unpleasant especially for fresh graduates from IIT, however looking at the economic situation, what is been done was inevitable by Infosys.
Infosys as a company enjoys the best employer brand image, and with them dissolving the letter of intent given out to the students, will not hamper their image much. Its simply for the reason, first, the students were given the "Letter of Intent" and not the "Offer Letter" and second the entire world is going through a recession and Infosys is owning up of being affected by recession.
Thus the statement made by Infosys spokesperson "that Infosys had not really cancelled any job offers since what they had given to the students was only "Intent of Offer", stands corrected as the "LOI" is an agreement which is not enforceable in the court of law. Basically a document illustrating the willingness of the employer to hire the candidate but may or may not turn into successful hiring.
Infosys as a company enjoys the best employer brand image, and with them dissolving the letter of intent given out to the students, will not hamper their image much. Its simply for the reason, first, the students were given the "Letter of Intent" and not the "Offer Letter" and second the entire world is going through a recession and Infosys is owning up of being affected by recession.
Thus the statement made by Infosys spokesperson "that Infosys had not really cancelled any job offers since what they had given to the students was only "Intent of Offer", stands corrected as the "LOI" is an agreement which is not enforceable in the court of law. Basically a document illustrating the willingness of the employer to hire the candidate but may or may not turn into successful hiring.
Monday, June 21, 2010
Intent of Offer Vs Offer
Hi EveryOne,
Greetings of the Day!
As per my perception "Intent of Offer" differs from actual "offer". Basically intent would refer to a very firm resolve or willingness to do something (but not necessary that it will be done). By inetent of offer the organization is not legally bound to stick to the offer. Intent of offer gives a chance of negotiation or bargaining power on the part of the prospective employer which they can turn down later on if things donot turn right between the employee and employer . Some times external factor do play a role in turning down the offer made. We can very well take the example of then Satyam and now mahindra satyam. Satyam had given intent of offer to thousands of pre final year students but the offer was never made.
HR had promised Sky is the limit for the prospective employee but the reality was not juicy enough. This is ethically wrong but this happens in industry and is a reality.
On the other hand offer is something that the company is willing to give and the offerer is also bound to give it."Offer letter" legally binds the organization to recruit the person.
Greetings of the Day!
As per my perception "Intent of Offer" differs from actual "offer". Basically intent would refer to a very firm resolve or willingness to do something (but not necessary that it will be done). By inetent of offer the organization is not legally bound to stick to the offer. Intent of offer gives a chance of negotiation or bargaining power on the part of the prospective employer which they can turn down later on if things donot turn right between the employee and employer . Some times external factor do play a role in turning down the offer made. We can very well take the example of then Satyam and now mahindra satyam. Satyam had given intent of offer to thousands of pre final year students but the offer was never made.
HR had promised Sky is the limit for the prospective employee but the reality was not juicy enough. This is ethically wrong but this happens in industry and is a reality.
On the other hand offer is something that the company is willing to give and the offerer is also bound to give it."Offer letter" legally binds the organization to recruit the person.
Sunday, June 20, 2010
Intent of Offer Vs Offer
At IIT Mumbai, Job Letters Turn Into Pink Slips
Source: The Indian Express May, 2002
JAYSHREE BAJORIA
MUMBAI, MAY 3: Sleepless nights, gloomy faces, tired looks and red-shot eyes. It’s not just the morning after the farewell parties at Powai’s Indian Institute of Technology (IIT).
The students are living the nightmare of the economic slowdown: letters of deferred and withdrawn jobs are trickling in and an increased number of students are joining the list of the unemployed.
This year, 120 out of 500 students are left with no jobs, no scholarships abroad and no option but to join the millions surfing the Internet for ‘jobs.’ While around 60 students had not been picked up by any company, the number of jobless rose to 120 when Infosys, SLM Software and Tata Infotech sent regret letters asking students to look elsewhere for jobs. While TIL ‘deferred’ 11 jobs and SLM Soft 22, Infosys dropped 60 students. Out of the 93, about 30 had other options.
The letter of regret from Infosys (dated April 16 but landed at the institute on April 22) was the real shock. ‘‘Please inform the students to look for other options/alternatives and not to expect any employment from us,’’ said the letter from the company which is now headed by Nandan Nilekani, arguably IIT Powai’s most famous alumnus.
Ashwini Tank from Jaipur came to IIT four years ago and landed a job with Infosys in July through campus recruitment. By the time the letter of offer arrived in January, he had taken his GRE and secured a score of 2100.
‘‘After my offer letter came, I gave up any plans of studying further as I was very happy with the job. I am good at programming and coding and that is what I wanted to do. But now, in April, they have sent their regret letter asking us to look for other options. But we have no options left. My computer has a new folder and it is called ‘jobs,’’ says Tank.
Students say the letter came when there were hardly any more companies coming to recruit, and when it was too late to apply for a US scholarship. ‘‘When the offer letter had not come till November, I started calling up the institute to ask if they had any plans to defer our jobs. But they kept denying it and in fact, in January, finally our letters came,’’ says Tank. ‘‘But suddenly on April 22, they sent us a regret letter asking us ‘to look for other options’. But where are the options? Is this any time to look for other options?’’
Another student, who was also picked up by Infosys asks: ‘‘Why did they present themselves as unaffected by the slowdown when they sent us offer letters? Why are they recruiting fresh students in the first place when those recruited from the last batch are simply sitting on the bench?’’
Even as most other IITs had received regret letters from Infosys which has deferred jobs to 1,300 students it had promised to recruit this year, Mumbai IITians still had hope — maybe because at the helm of affairs is one of their alumni.
Rahul Joshi, who comes from Jharkhand, says: ‘‘My entire family was banking upon me to get this job so that I could support them. I still haven’t told them. I don’t know what to do next.’’
When contacted in Bangalore, Infosys denied that it had cancelled any job offers. ‘‘No offer has been cancelled. The initial letter was an intent of offer. However, we can’t confirm a date when we will be able to recruit. In the meantime, they are free to pursue other careers or look for other option,’’ said the company’s spokesperson.
Said Tata Infotech Managing Director, Nirmal Jain: ‘‘Yes, we have asked couple of students to look around as the current position is very tight. In fact, we are just following the industry trend as most of the companies are unable to take students whom we have offered jobs.’’
He added: ‘‘We are not offering any compensation to the students whom we have asked to look around. But we have promised them that as and when things improve they would be the first people to get the positions.’’
The situation has prompted IIT-Mumbai to reassess its placement policy. N S Rathi, placement officer of IIT-Mumbai, says Mumbai-based SLM Soft too sent a letter deferring jobs for 22 students owing to a recent merger. ‘‘All IITs are now planning to go back to the old method where the process of placements would begin in October and not July. It was only with the coming of the IT boom that we were forced by the companies to start placements in June but now as uncertainty is rising, it is best that placements take place late.’’
The IITs have already extended their placement process by a month. But for the present batch, it may be a bit too late. Says Nishchaya Gera, student placement coordinator: ‘‘120 is an unachievable number to place within a month.’’
Some names have been changed to protect the identity of the students)
*****
Some questions for your thought.
1. Do you think "Cancelling the Job Offers" at IIT Mumbai would affect the "The Best Employer Brand Image" of these firms and thereby reduce their competitive advantage?
2. Do you agree with Infosys Spokesperson's statement that Infosys had not really cancelled any job offers since what they had given to the students was only "Intent of Offer"?
3. If you were the placement coordinator at IIT, Mumbai, what would you do to resolve the placement issues present in the above case?
4. Have you or any of your friends gone through similar experience where the job offers or intent of offer has been cancelled by the prospective employer? If so, how did you or your friend handle the issue?
Source: The Indian Express May, 2002
JAYSHREE BAJORIA
MUMBAI, MAY 3: Sleepless nights, gloomy faces, tired looks and red-shot eyes. It’s not just the morning after the farewell parties at Powai’s Indian Institute of Technology (IIT).
The students are living the nightmare of the economic slowdown: letters of deferred and withdrawn jobs are trickling in and an increased number of students are joining the list of the unemployed.
This year, 120 out of 500 students are left with no jobs, no scholarships abroad and no option but to join the millions surfing the Internet for ‘jobs.’ While around 60 students had not been picked up by any company, the number of jobless rose to 120 when Infosys, SLM Software and Tata Infotech sent regret letters asking students to look elsewhere for jobs. While TIL ‘deferred’ 11 jobs and SLM Soft 22, Infosys dropped 60 students. Out of the 93, about 30 had other options.
The letter of regret from Infosys (dated April 16 but landed at the institute on April 22) was the real shock. ‘‘Please inform the students to look for other options/alternatives and not to expect any employment from us,’’ said the letter from the company which is now headed by Nandan Nilekani, arguably IIT Powai’s most famous alumnus.
Ashwini Tank from Jaipur came to IIT four years ago and landed a job with Infosys in July through campus recruitment. By the time the letter of offer arrived in January, he had taken his GRE and secured a score of 2100.
‘‘After my offer letter came, I gave up any plans of studying further as I was very happy with the job. I am good at programming and coding and that is what I wanted to do. But now, in April, they have sent their regret letter asking us to look for other options. But we have no options left. My computer has a new folder and it is called ‘jobs,’’ says Tank.
Students say the letter came when there were hardly any more companies coming to recruit, and when it was too late to apply for a US scholarship. ‘‘When the offer letter had not come till November, I started calling up the institute to ask if they had any plans to defer our jobs. But they kept denying it and in fact, in January, finally our letters came,’’ says Tank. ‘‘But suddenly on April 22, they sent us a regret letter asking us ‘to look for other options’. But where are the options? Is this any time to look for other options?’’
Another student, who was also picked up by Infosys asks: ‘‘Why did they present themselves as unaffected by the slowdown when they sent us offer letters? Why are they recruiting fresh students in the first place when those recruited from the last batch are simply sitting on the bench?’’
Even as most other IITs had received regret letters from Infosys which has deferred jobs to 1,300 students it had promised to recruit this year, Mumbai IITians still had hope — maybe because at the helm of affairs is one of their alumni.
Rahul Joshi, who comes from Jharkhand, says: ‘‘My entire family was banking upon me to get this job so that I could support them. I still haven’t told them. I don’t know what to do next.’’
When contacted in Bangalore, Infosys denied that it had cancelled any job offers. ‘‘No offer has been cancelled. The initial letter was an intent of offer. However, we can’t confirm a date when we will be able to recruit. In the meantime, they are free to pursue other careers or look for other option,’’ said the company’s spokesperson.
Said Tata Infotech Managing Director, Nirmal Jain: ‘‘Yes, we have asked couple of students to look around as the current position is very tight. In fact, we are just following the industry trend as most of the companies are unable to take students whom we have offered jobs.’’
He added: ‘‘We are not offering any compensation to the students whom we have asked to look around. But we have promised them that as and when things improve they would be the first people to get the positions.’’
The situation has prompted IIT-Mumbai to reassess its placement policy. N S Rathi, placement officer of IIT-Mumbai, says Mumbai-based SLM Soft too sent a letter deferring jobs for 22 students owing to a recent merger. ‘‘All IITs are now planning to go back to the old method where the process of placements would begin in October and not July. It was only with the coming of the IT boom that we were forced by the companies to start placements in June but now as uncertainty is rising, it is best that placements take place late.’’
The IITs have already extended their placement process by a month. But for the present batch, it may be a bit too late. Says Nishchaya Gera, student placement coordinator: ‘‘120 is an unachievable number to place within a month.’’
Some names have been changed to protect the identity of the students)
*****
Some questions for your thought.
1. Do you think "Cancelling the Job Offers" at IIT Mumbai would affect the "The Best Employer Brand Image" of these firms and thereby reduce their competitive advantage?
2. Do you agree with Infosys Spokesperson's statement that Infosys had not really cancelled any job offers since what they had given to the students was only "Intent of Offer"?
3. If you were the placement coordinator at IIT, Mumbai, what would you do to resolve the placement issues present in the above case?
4. Have you or any of your friends gone through similar experience where the job offers or intent of offer has been cancelled by the prospective employer? If so, how did you or your friend handle the issue?
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