Are Candidates Backing Out After Offer Letters? Share Your Experiences and Solutions

Hi!

Those who are responsible for the recruitment function must have encountered the issue of candidates backing out after receiving the offer letter. What is the severity of the problem you face? For instance, out of 10 offers extended, how many candidates do not follow through? Does it have something to do with the level in the organizational structure?

Let us exchange views and attempt to find a solution. Or at least devise a way to identify signs of such candidates.

I have faced this issue with 4 out of 10 candidates, particularly at the senior level (Managers).

Upon analyzing the cases, I observed no commonalities except that most of them were sourced through placement agencies.

Upon introspection, the following points were noted:

- We conducted two levels of screening of applications for suitability.
- We provided an introduction to the organization through the placement agency and also personally over the phone.
- The interviews proceeded smoothly. Administrative tasks like coordinating with the candidates and welcoming them were executed properly.
- There wasn't a significant gap between the preliminary interview and the final interview (around 10 days).
- The candidates were not pressured much during salary negotiations (except for a few cases where their expected salary was met).
- The offer letter was issued within a week of the final interview.
- The candidates were advised to join one month after the offer letter was issued.

In your opinion, what could be going wrong? Do you encounter the same issue? How do you manage such situations? Any suggestions?

Thanks!

Hiten

Hi Hiten,

Very true. Practically speaking, it's very true. Many times we observe that candidates do not turn up after receiving the offer letter. They show their offers to their existing organizations and manage to get reasonable hikes there.

To a large extent, we can't do much about this, but what we can do is have a talk with the candidate at the time of issuing the offer letter and discuss with him/her that this is really an ill practice and one should not follow this. The rest depends on the morality of the person.

Regards,

Vikas Asisht

Dear Hiten,

Greetings!

When the candidate comes for an interview, give them the clear job profile of what they are supposed to do, to whom they have to report, and at the final stage, discuss the package. When issuing the offer letter, mention only the designation and not about the package or profile. After joining the company, provide the package details.

Alternatively, simply accept through email; after joining the company, provide the offer letter and appointment letter.

Regards,
John N

Hi Hiten,

This is often the problem which recruiters face. The only thing the recruiter needs to do after the candidate has joined is to follow up with the candidates on a regular basis to assess if there are any changes in the plans of the candidates.

We might have to be good at assessing if the candidate is looking for a job change and the reasons, like if he is trying to negotiate with his current employer for appraisals or if he is checking out various offers from different companies. If a recruiter can gauge the genuineness of the candidates, rather than their intentions, who are being shortlisted.

I guess this is a difficult job, especially in situations when you are handling recruitments in bulk. But ideally, you need to plan for a fallout of shortlisted candidates and then recruit.

Vijay

In our company, we have stopped issuing offer letters. However, if the candidate insists on having one, we do not mention the amount or package in it. We simply state that we are pleased to appoint you to the position discussed earlier, and your package is as discussed. This approach does not assist them in negotiating with other companies.

Deepa

Thank you, friends!

My frustration has reduced after knowing there are others as well facing the same problem. :( Well, for small and medium-sized companies, it is not easy to have backup candidates. Even if we have backup candidates, it eats up our time by 1.5 to 2 months. And if we reach out to the 2nd ranked candidate after, say, 1 month, he definitely feels uncertain.

Anyways, the problem we face has many dimensions - social, economic, psychological... But the bottom line is that we have to face it. Best of luck to all of you out there searching for talent.

Thanks!
Hiten

Dear Mr. Hiten,

Greetings for the day!

I believe we all are on the same boat when it comes to this particular problem :). Some members have already put forward some useful tips. I would just like to add a few points to the same.

Some candidates give us calls twice or thrice a day once they are informed they have been shortlisted for a particular position, asking for their offer letter. These are the candidates who are most likely to misuse the offer letter. They come up with the story (rarely the truth) that they cannot put down their papers until and unless they have the offer letter in hand. In such a situation, we issue these candidates an offer letter with only the CTC figure but not the break-up.

In the case of a senior candidate, we cannot refuse an offer letter, but in the case of entry-level candidates, at times we do not issue an appointment letter. As has been rightly pointed out by one of our friends, we directly issue them the appointment letter.

Moreover, after facing the music from the management for last-minute dropouts quite a number of times, now I try to negotiate with the notice period as much as possible. The sooner the joining date, the lesser the chance of dropout (not true in all cases, though). As the saying goes, "hit the iron when it is hot."

I hope this makes sense to you.