Is Reneging Actually That Bad?

I know there hundreds of threads on here with the ethics of reneging - but thought I'd bring the conversation back into play given the light of recent events by some firms. Also I want to preface by saying I'm against burning bridges with close contacts through reneging, but that is sometimes inevitable. With that being said, recent events have shed light on how little firms actually care about their inters/employees as they're so quick to throw you to the curb when the ship gets rocky. The way firms have pulled internships, cut pay, shafted return offers, etc etc. At the end of the day, they're really only looking out for themselves so why blame them? But why is it such a big deal when someone decides to renege an offer for the same reason? To look out for their best interests. Am I missing something or is reneging treated like a criminal offense on here for no great reason? Like I said, I'm not a fan of burning bridges with contacts at firms who have helped you to get the offer but it's the name of the game IMHO. Curious to hear others thoughts

 
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I feel this. I have no hesitation reneging if that's what I'm faced with at some point in my career. It's just business. My firm gave me a return expiring in 2 weeks, but gave other interns with stronger career centers all the way until October to make a decision. Their only goal with this is to take advantage of me and others who are not protected by their school. I don't blame them, but I also don't get how they could blame me.

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The above is specific to on campus recruiting, where schools will not allow the firms to give exploding offers and set a date. It’s not that they are trying to take advantage of some candidates vs others (even if that’s how it ends up coming across).

As far as reneging, as a general rule it shouldn’t be done, but I think this site and many people overstate the repercussions. Yes, you will burn your bridges with that firm, but very unlikely they are going to set out to screw you across the street. Ultimately you need to do what’s in your best interest. There is a point where reneging an offer screws the firm (ie waiting until the last minute) but a bank having to hire an additional FT analyst in 6 months time isn’t the end of the world and is very little incremental work for them

 

Anthony Davis didn't renege; he just asked to be traded. Plenty of other players do that, like me, Paul George, Kyrie Irving, Jimmy Butler, Shaq, CP3, Scottie Pippen, Dwight Howard, etc. The only instances of players reneging that come to mind are Marcus Morris and DeAndre Jordan.

I’m a fun guy. Obviously I love the game of basketball. I mean there’s more questions you have to ask me in order for me to tell you about myself. I'm not just gonna give you a whole spill... I mean, I don't even know where you're sitting at
 

It's power dynamics. They have the ability to harm you while for most (special sons and daughters excluded), you have no ability to do anything to that firm early on in your career. I'm not saying it's right, just explaining the why. I would just encourage you to maintain that clarity of thought as you progress in your career. The power dynamics eventually change as your career progresses and you become more influential. If I'm not clear enough, you are right. They do not give one rats ass about you and you should act accordingly. 

 

Reneged BB for buyside FT and know a lot of people who have reneged, my $0.02:

  1. Reneging is riskiest within industries (IB —> IB) particularly banks that work together a lot on deals (MM —> BB/EB is therefore less risky than going to a competitor MM FT). IB —> PE is pretty safe: banks are not going to call up all of their clients and cry about them stealing an analyst.
  1. Do not feel bad about reneging. It is literally written into these contracts that you are an “at will employee” and basically your employer can terminate you at any time for any reasons. You are also granted the explicit right to pull out at any time for any reason.
  1. Do not tell anyone outside family that you reneged until the start of your last semester at the earliest, and ideally wait until graduation. You’ll be proud, it will be difficult, but better to be safe and sound.
  1. When recruiting while signed elsewhere, make it crystal clear to the firm you are applying to that you already signed at the other place, but that XYZ is your first choice and you got pressured into signing immediately or something like that. THIS IS IMPORTANT because even if you are caught, your new firm won’t care, and if a firm does care you probably shouldn’t renege for them anyways.
  1. This is the hottest job market for high-skilled workers ever. You’re not acting in your best self-interest if you’re passing up on applying to higher paying opportunities that open more doors for you.
  1. It’s economics: If a firm didn’t want you to renege, they should have paid more or offered you a better summer experience.

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