How to handle exploding job offers

"'Exploding offers' is a term used for offer contracts that have a specified period of time in which a candidate has to decide on whether or not to accept or decline the offer," says Brian Hood, head of graduate recruitment at Citigroup. Citigroup uses them, and so do most of its rivals. So ... how do you react if you receive one?

Think you're dreaming

We know - if you spent days, weeks even, filling in application forms, and have no offers to show for it, the notion that there are people out there who have several may seem implausible. Unfortunately, however, they do exist.

"There are always candidates with three or four job offers on the table," says Vivienne Dykstra, managing director of independent graduate recruitment company Graduate Solutions, and former head of graduate recruitment at Deutsche Bank. "Everyone is fighting over the top 5% of candidates."

Stall, or ask for an extension

If you're a member of the three-or-four-offers club, it may seem tempting to delay making a decision on which offer to go with for as long as possible. But delay too long and offers will go bang beneath your feet.

Of course, there are explosions and there are explosions. Although banks usually threaten to withdraw (explode) their offer after a certain date, most are willing to be flexible.

"We have a standard two-week deadline, but will potentially give extra time on a case by case basis," says Sally Whitman at Deutsche Bank.

"We appreciate that it is important for candidates to accept the right offer for them, and people should not be pressurised into accepting an offer just because of the 'exploding' date", agrees Citigroup's Hood.

Who's most likely to get an extension? Predictably, it will be the people banks most want. And the way they measure who they want is partly in terms of where those rival offers are coming from.

"You need to bear in mind the hierarchy of banks," says one recruiter. "Goldman Sachs is unlikely to delay the deadline if you say you're contemplating an offer from Dresdner, but most banks will be flexible if you say you've also got an offer from the likes of Goldman or Morgan Stanley - it will make you seem more desirable."

Play your ace card

If a bank that really wants you learns you're weighing offers from its competitors, you can expect to be heavily wooed. Most will call upon the services of senior members of the business area you're joining, who will call you and invite you into the offices (you may even be able to squeeze a meal out of them). "Everyone's fighting over the same candidates - so you can bet your bottom dollar that if you're not taking them out, your competitors will be," says one recruiter.

If your offer is not from another bank, keep it to yourself

Don't tell banks if your other offers come from outside the industry. "If you're sitting on a Goldman offer and your other offer is from McKinsey, it doesn't show a huge amount of focus," says one recruiter. "If you've got a candidate who can't choose between banking, law and consultancy, you tend to lose interest."

Have you received an exploding job offer? Send us your comments below to let us know how you got on.