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.