How to Handle Last-Minute Candidate Reneging and Avoid Client Penalties?

Hi Citians,

Query:

Recently, we offered a candidate a generous package for his initial posting in Gurgaon. He is a Senior Mainframe resource with over 6 years of experience from Hyderabad. He showed great enthusiasm throughout the interview process and when joining. He was scheduled to report on December 15, 2005, to Gurgaon, and we had arranged his air tickets and accommodation. He was supposed to fly on December 14, 2005.

Upon joining, he initially requested a package of 8.5L with accommodation, to which we agreed. Ten days later, he asked for 9L, a Project Lead designation, and accommodation for 3 weeks, which we also agreed to. However, on December 13, 2005, he demanded 9.5L, a Project Manager title, or else he threatened not to proceed. Despite this, we agreed to his new terms.

Suddenly, he expressed his unwillingness to join. This situation has caused significant complications. The client may impose a penalty of 50K without hesitation.

In such cases, how should we handle this issue of a candidate reneging on their commitment at the last moment?

Regards,

Kumarpal Jain.

Hi Kumarpal Jain,

I must credit you for presenting the facts in a clear and concise manner.

I understand your situation very well as I have faced the same in the past and have learned from it.

Recently, we offered a gentleman a generous package for his initial posting in Gurgaon. He is a Senior Mainframe resource with over 6 years of experience from Hyderabad. He showed great enthusiasm during the interview process and upon joining. He was scheduled to report on the 15th of December 2005 in Gurgaon, and we had made all the necessary arrangements for his travel and accommodation. However, just before his departure on the 14th of December 2005, he began making unreasonable demands:

1. Upon joining, he requested a salary of 8.5L and accommodation, to which we agreed.
2. Ten days later, he demanded 9L with the title of Project Lead and accommodation for 3 weeks, which we also agreed to.
3. On the 13th of December 2005, he insisted on 9.5L and the title of Project Manager, threatening not to join if his demands were not met, to which we reluctantly agreed.

Suddenly, he declared that he did not wish to join at all, causing significant disruption. The client is now considering imposing a penalty of 50K for breach of contract. My concern is not the financial penalty but the lack of commitment from the candidate after making multiple commitments and changing his mind at the last moment.

What can be done in such cases? How can this behavior be prevented in the future?

From this experience, we have learned:

- The importance of having a committed resource team.
- The necessity of obtaining feedback to understand why a candidate may back out.
- The critical nature of negotiation skills when finalizing deals, particularly regarding salary negotiations.

It is crucial not to easily concede to demands and to establish binding terms from both parties. Additionally, building a strong working relationship with the candidate post-offer acceptance can help prevent such last-minute changes.

I hope these insights are helpful.

Cheers,

Rajat Joshi

Hey,

What Rajat said is perfectly okay. The candidate and consultant rapport building is something that always paves the way to smoothen the transition of joining. The negotiation failed due to your desperation in getting the person on board, and the person capitalized on it. The backup plan was not in place, which resulted in the disastrous situation. The candidate played his cards to get the most out of you, and using the same, he might have negotiated a better deal elsewhere. As Rajat pointed out, the feedback from him will be of great use to rectify our actions.

Cheers,
rb