A

formal communication made by an employer to a job candidate in which the employer offers a job to the individual. A job offer can be a
oral offer, made in person or over the telephone written offer- letter or by e-mail.

Starting date Duration of contract Compensation Starting pay

x Flat vs. differential rates

Variable pay x Short term x Long term Benefits

Hours

Special hiring inducements Hiring bonuses Relocation assistance Hot skill premiums Severance packages Restrictions on employees Other terms and conditions Acceptance terms

 Formulation Presentation Job

of job offer of job offer

offer acceptance and rejection

Reneging

 Knowledge

of competitors

Labor demand issues

x Who are the competitors? x What terms and conditions are they offering for the job for which the hiring organization is staffing?

Labor supply issues

x Offers need to attract number of staff required x Offers need to consider KSAOs of each offer receiver and the worth of the KSAOs

 Applicant

truthfulness

Minimal evidence exists on degree of applicant

truthfulness To combat deceit, organizations are pursuing verification of all applicant information
Likely

reactions of offer receivers

Approaches to assess reactions to offers x Gather information about various preferences from offer receiver during recruitment/selection process x Conduct research on why offer receivers accept or decline job offers

 Policies

on negotiations and initial offers

Job offers occur for both external / internal

staffing Consider costs of job offer being rejected by candidate Candidates may be receiving counteroffers from current employer Currently employed candidates incur costs for leaving and expect a make whole offer Candidates are sophisticated in presenting their demands

 Strategies

for presenting initial offer

Lowball x offering the lower bounds of terms and conditions to the receiver Competitive x an offer that is on the market, neither too high nor too low Best shot x gives a high offer, one right at the upper bounds of feasible terms and conditions

 Two

approach mechanical approach

dry, sterile, passive, one-way and limited

communication, form letter

sales

approach

active interaction between organization and

offer receiver before and after offer job offer is product to be developed and sold, active as opposed to passive

 Acceptance Rejection

By organization By offer receiver

Reneging