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Rejecting a job offer? Get ready to pay penalty - Economic Times

From India, New Delhi
Hi Veer,
Employment is nothing but the contract between Employer and Employee. Employer offers a job and Employee accepts it, according to The Indian Contract 1872 also there are provisions for the acceptance that it must be free consent. No one can insist the other party to accept the offer. So it all depends on the Acceptor's interest to accept it or not.
It is better to forget about the candidate. If you want you can restrain him for any future job applications in your organization.
With Best Regards,
Ravichandra

From India, Hyderabad
Hi Smit,

Part of my response to the problem of dropouts is already in my previous post on this thread.

I also read the article of ET which you shared - thanks for that. My personal feeling is that the article has been paid for specifically by organizations which are more bothered with financials rather than providing a strong employer brand that offers a great place to work. As the article itself mentions, it is difficult to exactly quantify that cost to a particular figure and as such can be challenged in court. Additionally, the offer is made to the candidate after being screened by the recruitment consultant and at least 2-3 levels of interviewing in the organization. If during this process, the candidate comes across something which in his / her perception creates a doubt about joining, then he / she will already have second thoughts by the time the offer is tabled. There are many instances I am aware of, where due to the interaction between the candidate and the organization post accepting the offer, the candidate refuses to join.

Now let's turn this around - What should a candidate do when, for some reason or other, an employment offer is withdrawn by the organization? By the logic of the article, and preserving the principles of equal justice, the candidate should then have every right to sue the organization for breach of contract. Which organization do you think will compensate the candidate? and how much will they compensate?

To explain further - Dropouts are a way of life in the recruitment function of HR. All organizations, from the Great Place to Work, to the not so good places have dropouts.

The reason I said that we should move on to the next candidate and not waste time, is because penalizing the candidate doesn't help the employer brand image (I mentioned this in the earlier post). Building the employer brand is a long term strategy which all HR people should be focused on - we can't leave it to the line managers because they have other targets to manage, and we know that if this is not managed well, then the repercussions are huge and financially costly. There are organizations which have to pay higher compensation for regular positions because their employer brand is so bad, that candidates are not interested to even send their resumes, never mind the attend the interviews.

At this point again, please consider - while you are working on trying to get some of the cost of recruitment operation back, the position is still vacant, further adding to your cost. How will you answer your management at the end of the year? And how will they answer their shareholders?

w.r.t. appointment letter, let me clarify - please give the detailed appointment letter after the candidate joins. Before that you could share the offer letter with the CTC breakup. The offer letter generally mentions the CTC breakup, designation, grade and date of joining. It can also mention points about medical fitness if you have medical checkup as part of the recruitment process.

Please note that the solution you provide of an offer letter without CTC details is incomplete and would not be accepted by most professionals. Trust begets trust, so also does fear beget fear. The incomplete offer letter shows a lack of trust from the organization.

Let me ask (and you please ask your friends) if you would join an organization without receiving an offer letter, and have received only verbal information about the role, designation, grade and CTC? We are already aware of cases where the candidates join organizations only to find that their role, designation and even CTC are not the same as mentioned in the offer letter - and they try to leave as soon as they get something else. How do you explain something like this to your spouse / family - that you resigned your job without an offer letter, and are joining an organization, without anything in writing?

The appointment letter has all details of terms of employment including probation, confirmation, IPR, discipline and separation. The danger of giving only with the offer letter is that none or very few of the appointment letter terms are mentioned in the offer letter - and if such an employee does a serious fraud in your organization, especially with respect to an external customer, you have no legal hold on him, and cannot even file a complaint as an organization against that employee.

Hope this helps. Contact me offline if you wish to discuss this further.

Regards,

From India, Mumbai
Focus on finding out ways to reduce such incidence and increase candidate’s joining conversion rate.

To increase candidate’s joining conversion rate would suggest to -

- Highlight key Selling points of your company, project, profile for which you are hiring –

Do not simply close the offer by offering a letter and salary to candidate.

Tell candidate about various benefits your company gives.

Talk about work culture, fun at work etc

Normally, HR does all this at the time of induction, do a small part of it while offering to potential candidate.



- Call Candidate for interview 2-3 times - As per your company recruitment process, you can call them for some IQ test, EQ test, technical test, asking them to submit salary proof related documents

- Take resignation acceptance copy after offer made - He should do that within 3-5 days of offer acceptance. With this, you can at least be sure that he has not been retained by his existing company.

- Job Profile & Salary offered to candidate should be attractive & competitive as per current industry standards

- Keep your List of Backup Candidates updated

Best wishes and Happy recruiting

From India, Mumbai
Veermati

While everyone seems to be saying the same thing (Legal action is pointless), I would like to address a few factors that could have been addressed reducing the impact of this candidates rejection of your offer. This must not be taken as a criticism but as a "learning" platform.

Look at your interview questions, especially the ones connected to his motivation to change... The chances are extremely high that his motivation for change was purely finance related ( more money)... The probability of a candidate whose main "change motivator" is money, not accepting an offer is actually the highest among all such factors. They are also the most likely and easiest people to retain because all it requires is an increase in their compensation. Unless your offer is substantially high, they are very likely not to join.

His first refusal was an indication of the same.... He should have been out of the contention and his offer should have been immediately withdrawn when he refused the first time.... He was given or promised the rise in his current company but realized it was not meeting his expectation and that took 5 days, so he was back apologizing...:-) but obviously he was still on the hunt... He got his break that he wanted and so he didn't join again... Expected, very normal scenario!!!

What should ideally have happened from your perspective (and this is purely my opinion)... The moment his first refusal came, you should have withdrawn his offer letter and issued the next best candidate the offer... This is solely based on the assumption that you had the next best candidate identified... One of the biggest mistake that we make in the IT industry is stop interviewing once a good candidate is identified and offered. We restart once that guy doesn't join, which is a silly (sorry !!!) process. Keep interviewing till you have 3 possible candidates... Doesn't matter if there is a huge difference in their quality... In the quest to find the right guy, we forget a simple fundamental fact... an average guy is always better than no guy at all...

The other thing that could have been different was your ability to read the situation... There were enough indications of things not working out and i think, we should have been prepared for it... We again seem to always forget ( and i include myself in this group too) that Recruiting / HR is not about "Black & White", it is ONLY about "All Shades of Grey" in between. Our ability to understand these shades of Grey is what eventually differentiates the Great / Goods from the average / mediocre...

Cheers

From India, Delhi
Go for Employer Branding. I think your brand is not so appealing to candidate.
sometimes unsatisfied people in organization give negative feedback to candidates so look for employee satisfaction.
review you policies and make positive changes to retain current talent and attract new.

From India, Mumbai
Ryan & Soonal thanks for your inputs. Kindly let me know your contact details, that will help me in executing my work in more professionally with your guidance.
From India, New Delhi
I think Veermati is in new in HR field...
Note : Almost 3 out of 10 reject the offer and 1 do not join on said DOJ.... so do not waste your time to take any action on candidate who earlier accepted your offer and now not joining....
While recruiting take care that you have choose 2-3 candidate for the 1 position and give offer based on that...so it may save your time...
If 1 reject offer then immediately you can contact 2nd who is in list of selected candidate...

From India, Pune
Hello,
I think this is most common situation faced in recruitment.
I had situation where outstation candidate call me in the morning to confirm that he is in city and will come to office by 10.00 AM and then around 10.30 AM he called me to inform that he is going back to his city as he got offer from company there.
So this is part.
Best thing you can do is keep 2-3 candidates ready who are selected and can join with short notice. So if one candidate back out you are not stick with no option.
Regards,

From India, Vadodara
Dear all
Everything is right but also my opinion is that why candidate mail for joining for conformation,
this kind of cash we also same mail forward to his/her organization for candidate's this kind of behavior.

From India, Mumbai

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