Why do candidates renege on offers?
There are many reasons for candidates to renege offers, especially in the current job market. Those who are recent graduates or about to graduate may be going through the recruitment process with multiple prospective employers and have one specific employer in mind as their first choice. If they’re hired by one of the other companies, they’ll most likely accept that offer but still continue pursuing an offer from their first choice. Other reasons a person may renege on an offer include:
- Their current employer gave them a better offer.
- They decided to pursue a higher-level academic qualification instead of entering the workforce upon graduation.
- The benefits and salary offered don’t match their expectations.
- They have concerns about relocation or working arrangements.
- Something in the interview process raised their concerns about what it would be like working for the company.
Many of the above reasons apply to more experienced candidates too. Understanding what attracts candidates can help encourage them to follow through after accepting an offer.
How to stop candidates from reneging an offer
Making changes to your recruitment process is the simplest way to avoid the waste of time and money caused by candidates reneging on offers. The following strategies can be particularly effective for entry-level candidates and are applicable to senior candidates too.
Treat candidates like they’re interviewing you too
The job interview process should be two-way. You’re checking whether candidates have the skills you need, and they’re learning whether you’re an employer they’d like to work for. Candidates who have a poor interview experience are more likely to pull out after accepting a job offer. Take the time to personalize your communication with each candidate, and make an effort to communicate in a timely and efficient fashion.
Ask candidates about their ambitions and job search efforts
Many entry-level candidates apply for lots of jobs at the same time. Ask your candidates what their long-term goals are and if they’re talking to other companies. Depending on how far you are along the job offer timeline, you may feel it’s appropriate to move more quickly with the offer process to secure a high-quality candidate.
An applicant may choose to accept an offer from your company even if you aren’t their first choice, then renege if their dream offer comes through. By asking applicants to keep you informed about the progress of other applications, you’ll have the opportunity to adjust your timeline or, at the very least, keep the door open for other suitable applicants in case your main candidate pulls out.
Give candidates time to consider the offer
Treat the offer process like a negotiation, and give candidates time to consider before committing. This lets the applicant look at the compensation package, review their contract and consider any other practicalities such as relocation. A successful applicant who might otherwise renege on an offer they’ve accepted may feel more comfortable coming back to the table to negotiate if they want to accept, but practical issues are getting in the way.
Stay in touch after making an offer
The employee onboarding process should begin as soon as the candidate has the job offer. While they’re considering the offer, stay in touch and send them information about training, career development opportunities and perks offered at the workplace. If they accept the offer but can’t start because they’re still completing a course or serving a notice period with their previous employer, send them a welcome pack and give them the opportunity to meet some of their teammates. This communication can help build enthusiasm and is an effective way to start the team-building process early on.
Ask for feedback… and listen
Ask successful applicants what they thought of the hiring process and if there’s anything you could do better. Listen to their feedback, and, where possible, show them you understand. Starting a new job is a major life change for anyone, whether they’re a graduate entering their first full-time position or an experienced person leaving a company they’ve been with for several years for a new challenge. While your candidate is waiting to start their new job, they may feel nervous. By making them feel like a valued part of the team from day one, you’ll set yourself up for better employee retention in the long term.
Accept reneges as a risk of recruiting
Having an applicant or two renege on an offer is inevitable. A candidate may have a family emergency or some other major life event that prevents them from following through on an offer, no matter how appealing you make it. You can mitigate this risk by altering your hiring process. If you’re interviewing for several similar entry-level positions, factor some dropouts into the number of candidates you take through to the final stages. When hiring for more senior positions, stay in touch with the top few candidates, keeping the door open to hire them if things fall through with your first choice.
