Gretchen Miller

A Mistake on the Offer Letter… Now What?
May 2, 2007

In the race to hire top talent you rush to extend a job offer to a new employee – only to realize you’ve made a mistake. The mistake is not in your favor and it’s not in the budget - in fact it’s going to cost you!

Now what?

There are three things you must do quickly:

• Admit your mistake.
• Offer a compromise.
• Prepare for the fall-out.

First – admit your mistake. The old saying is true, “Honesty is the best policy”. This is the beginning of your professional relationship; start off on the right foot. As soon as you realize the error contact the employee and offer a brief explanation. During your conversation:

• Apologize - it’s your fault not theirs.
• Be very specific about the error. For example, “Chris – the mistake on your offer letter is in the second paragraph detailing vacation time. Your letter states three weeks paid vacation. We actually offer two weeks paid vacation.”
• Refer to any relevant information that points to the error. For example, if you posted the job, refer to the AD. If the copy reads, “…two weeks paid vacation…” it helps build your case.

Second – offer a compromise. Is there a way to meet in the middle? For example, your offer letter stated three weeks vacation, but you offer two.

• Could you push the new employees start date back by a week thus giving them a week off in between jobs?
• Would a small signing bonus offset the financial difference?
• What if you offered 18 days vacation vs. the 21 days stated in the letter.

If you are able to reach a compromise, simply revise the offer letter.

Third – prepare for the fallout.If a compromise is not suitable, there are two ways to go:

• Honor your original offer.
  Begin by drafting a letter to the employee recapping your conversation. It is important for the employee to understand you are making an exception for him or her and that the error in their favor may not be applied to current or future employees. Ask the employee to keep your agreement confidential but be prepared for the “secret” to get out. Is a sweeping change in policy necessary? If any of your current employees should catch wind of the newbie getting something they don’t have, you should be ready with an explanation. Your explanation is simple – just tell the truth.

• Rescind your offer.
  If it will break you financially or it is otherwise impossible for you to honor the mistake and you are not able to reach any sort of compromise then you may need to rescind your offer. If this is the case it may be time to alert your employment lawyer.

We all make mistakes from time to time and it’s usually not fun to admit it. However, addressing an employee issue early and with good intentions allows you to avoid a much more complicated situation down the road.

Posted by Gretchen Miller on May 2, 2007 | Comments (0)