Issue: In their zeal to lure top-shelf applicants, hiring managers may embellish on the pay, perks and promotion opportunities.
Risk: Failing to follow through on promises, especially those made in writing, can prompt fraud lawsuits.
Action: Use this case to persuade managers to run all job-offer letters through you.
Hiring negotiations can be a complex game. But if your organization doesn't play that game fairly, it could get thrown for a very big legal loss.
The lesson: Remind your hiring managers never to promise compensation, benefits or work conditions that your organization can't (or doesn't intend to) honor.
Tell your managers to make job offers only in writing and that oral promises made to job candidates can come back to haunt them ... and the organization. Insist that they show you a draft of job-offer letters.
Even your "at-will" employment statement won't save you from a manager who can't keep his or her compensation promises.
Recent case: A radio station recruited Len Agosta heavily to lure him away from a competitor. After Agosta declined the initial offer, the station dangled a sweeter deal, and he accepted the written offer.
But shortly after Agosta began, he says, he wasn't earning the compensation he was promised. Agosta sued, alleging negligent misrepresentation and fraudulent inducement. He won. The court said that, even though Agosta was employed "at will," it didn't allow the radio station to lure him with false promises. (Agosta v. N. Arthur Astor, et.al., No. D042200, CA4, 2004)
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/1131/warn-managers-not-to-exaggerate-pay-and-perks "
- Punch up your résumé with these 20 words
- 2011 salaries expected to remain the same -- Increase your income odds with 4 ongoing strategies
- Appearances do count: Check for hidden bias in terminations
- Social media and HR: Managing the legal risks, updating your policies
- Transportation Companies Face New Drug-Testing Requirements, Starting on Aug. 25