Making a Job Offer

Making a Job Offer

1. Recommend whether Jane should receive a best shot, competitive or lowball offer, and why? Given the situation presented in the case, it would seem that Clean Car Care should make a best shot offer to Jane. There are a number of reasons to justify this decision. First, Jane has been an excellent performer at her current employer. Jane is line for a promotion at her current employer. The case indicated that Jane’s employer will most likely make a counteroffer, if 3Cs offers her the manager job.

The point is, Jane will need to be given some strong incentives to draw her away from her current employer. Second, the issue of working on weekends may become a serious obstacle to reaching an agreement between the two parties. 3Cs’ strategy will need to make the best overall job offer to hopefully compensate for the job’s requirement for working on weekends.

A low ball offer would likely be totally uncompetitive with Jane’s current employment situation. Jane is obviously not “desperate” for another job, although she is willing to change jobs if the terms are right. Her current employment situation is quite favorable; she is due for a promotion soon and she is making a competitive salary and receives good benefits.

A competitive offer would still be unlikely to induce Jane to accept the job offer from 3Cs. This would be especially true given the significant mismatch between the working schedule and Jane’s scheduling preferences. A competitive offer could potentially match Jane’s current employment situation in terms of salary and benefits, but recall that Jane is likely to be promoted shortly; this would make 3Cs “competitive” job offer “uncompetitive.”
2. Recommend other inducements beyond salary, health insurance, vacation and hours schedule that might be addressed in the job offer and why.

Two specific examples of inducements discussed in the text which are relevant here are: 1. hiring bonuses, and 2. relocation assistance. 3Cs may wish to offer Jane a one-time, lump-sum hiring bonus to induce Jane to accept its job offer. The advantage of doing this is that it is a one-time expense to the company. Relocation assistance in the form of paying for moving expenses, providing house hunting services, etc. This would facilitate the transition from Jane’s existing residence to her new home.

3. Draft a proposed job offer letter to Jane, incorporating your recommendations in points 1 and 2 above, as well as other desired features that should be part of a job offer letter.

The Clean Car Care (3Cs) Company

June 15, 2002

Ms. Jane Roberts

Dear Jane,

We are delighted to offer you the position of manager at 3Cs’ northside facility, beginning on August 1, 2002.

Your job is a full-time, salaried position. Your starting annual salary will be $33,000. Annual merit increases can be earned based on your job performance. Benefits include, health insurance, flexibility in work schedules, and vacation time. In addition, we would like to offer you a $3,500 bonus, if you choose to accept this job offer.

If you decide to accept this job offer, 3Cs would be happy to assist you in the relocation process by providing $1,500 for house/apartment hunting and $ 5,000 for normal and reasonable moving expenses.

It should be emphasized that we are an employment-at-will employer. This means that we, or you, may terminate our employment relationship at any time, for any reason.

Jane, please inform us of your final decision regarding this offer by June 30, 2002. If you wish to accept this offer as specified in this letter, please sign and date at the bottom of the letter and return it to me. If you have any questions regarding this offer, please feel free to contact me. We look forward to hearing from you in the near future.

Sincerely,
Arlan Autospritz
President
Clean Car Care

I accept the employment , and its terms, contained in this letter. I have received no other promises other than those contained in this letter.
Signed ________________________ Date _______________