Why Do Candidates Decline Job Offers After Accepting? Share Your Insights and Solutions

Hi All,

I am working in an MNC as a recruiter. Presently, I have taken up a project and need your contribution for it. I am trying to probe into reasons that lead a candidate to drop out after the offer has been made.

Few reasons that I figured out were:

- He shopped around with my offer and got a better comp :(
- Better Role Offered.
- Personal Reasons....Not open to relocation.

I would like your inputs for it. Also, I would like to understand what your organization is doing to minimize it.

Even if you are not a recruiter, with your personal experience, I would like to know what motivates or restricts a candidate from joining an organization after accepting the offer.

Regards,
Pragya

Most often, from what I have seen, people backtrack on offers due to various reasons:

1. Cross-selling - Seeking a better deal from their present employer.
2. Overselling - Receiving a more attractive offer from another prospective employer.
3. Not actively seeking a change - Just evaluating their market value.
4. Selection process issues - Time constraints, behavior concerns, follow-up, and communication challenges.
5. General market feedback about the company - Individuals conducting research on company culture, work atmosphere, commitment levels, HR policies, reporting relationships, etc.
6. Time taken to finalize an offer.
7. Discrepancies between commitments made during interviews and clauses in the offer letter.

Just my two cents.
Cheers,
K

Pragya:

The market has become filthy nowadays. Guys are playing with the offer letters. They try to get one offer and play around with other companies to get more than what they had in that offer. This is what job hopping is all about because they don't have ethics. At the same time, it's the organization's biggest mistake because it's the companies that are entertaining these guys.

Thanks,
- Mirza

Hi All!

Can we classify the reasons according to the parties involved?

Say,

The candidate: Lack of determination to change, appeared for an interview due to frustration which eventually eased out, Locational preference, Family objection or non-concent, Working with more than one consultant, and having more than one offer.

The Recruiting Organization: Role clarity not provided, Time taken is longer than normal, Salary negotiation done too tightly, Reference check not positive, Creating doubt about the location of work, details provided to consultants or the candidate about the role not clear, Interview panel not prepared for interviewing the candidate against the position, Perks and Fringe benefits not attractive, Inadequate follow-up with the placement agency and/or candidate.

The Present Employer: Structural adjustments provided, designation upgraded, higher salary offered, new role provided, Emotional bargaining, making perks and fringe benefits more attractive.

The consultants/Placement agencies: Actual job description not offered to the candidate, Offering other vacancies to the candidate. Not following up with the candidate.

Hope the above classification is logical. Would like your friends to add to it and suggest remedies.

- Hiten

Mirza,

Do companies, specifically company HRs, play with candidates by offering them mirages in a desert?

Ravi:

Of course, you are correct, but do you know who asks them to do it and why they do it...? Because HR is not the whole and sole of an organization, right? But anyways, what I see these days is that HR is not acting smart in some areas. Even though we have reference checks and new practices emerging in the industry, we still seem to be lacking in some areas.

For example, if I have offered a person a position as a software engineer for 7 lakhs and they have accepted; then, they might start looking for better offers in the market by leveraging this offer to negotiate. I don't understand why companies entertain this behavior. Frankly speaking, I have encountered such incidents and have chosen not to entertain them. Instead, I have made it clear that they should either accept the offer they have or move on.

I believe all of us should come together to address this issue; otherwise, I am concerned about where the Indian Market is heading. Your thoughts are welcome.

- Mirza

Hi Mirza,

Thanks for the well-summarized input. However, the eternal question remains - what can I do to minimize it? As a Recruiter, my performance is judged based on the number of onboardings I have to my credit.

Improving the interview experience, providing clarity on roles and responsibilities, and transparently discussing the compensation breakdown come to mind as strategies to reduce post-offer dropouts. I would appreciate it if you could also share your insights on this matter.

Thanks,
Pragya

Hi Mallick / Hiten,

The question was intended for you. Thanks for the input, well summarized...but the eternal question...What do I do to minimize it?

As a Recruiter, my performance is judged on how many On boards I have to my credit. Better interview experience, clarity of role and responsibility, comp break up is what comes to my mind, to stop the post-offer dropouts. Would help if you could provide your insights into it as well.

Thanks,
Pragya

Pragya, whatever the offer you are making, the Date of Joining (DOJ) should be maximum 1 month, and still, he has the option of 30 days. However, there are different ways of communicating with people. You can have a rapport with the guys, talk to them once in a while, ask them what's going on, and make them feel comfortable with the offer he has.

- Mirza

Hi,

Yes, our company is also facing the same problem as it is an MNC with a software development team. I am also facing the same issue while hiring candidates for the software team. To some extent, we are happy when our positions are finally filled. However, these candidates often show no respect towards the company; some even inform us on their first day that they will not be joining.

We have tried to figure out why this is happening. One reason could be that our company is not solely focused on IT. Another reason is that the market has become very volatile nowadays. IT professionals have developed a habit of attending multiple interviews, accepting offers for better salary packages, and some are specifically seeking onsite opportunities. Companies are now retaining their talent by offering onsite opportunities, and sometimes the location becomes a valid reason for candidates to revoke their acceptance of an offer.

In this competitive environment, people seek comfort, facilities, and challenging work assignments. Therefore, HR professionals need to be proactive in their hiring approach. I believe we should maintain continuous follow-up with candidates, making them feel comfortable about the working culture here by engaging in informal conversations before their start date.

Regards,

Milan

Hi Pragya!

I am afraid I don't have anything concrete to suggest as a solution or prevention. Everybody is saying the industrial sector is growing. The demand for skilled manpower is ever-increasing. However, the supply is far less. The problem lies in macro-level manpower planning.

As HR professionals, we have to rely on our brand ambassadors - our employees - to attract candidates to us. If our employees spread goodwill about us both at the workplace and outside of it, it will be most beneficial in attracting candidates to join us.

Another practice I follow is liaising with only two recruitment agencies and asking them to conduct thorough analyses. I do not request profiles on an urgent basis. Instead, I give them sufficient time to provide reliable profiles. Additionally, I communicate frequently with candidates.

The dropout ratio has noticeably reduced in the last 4-5 months. Previously, it was nearly 50%, but now it stands at about 37%. (Touchwood :))

- Hiten

@ MIRZA,

Whatever the offer you are making, the Date of Joining (DOJ) should be maximum 1 month, and still, he has the option of 30 days.

The DOJ should be mutually decided with the candidate. I don't know why employers insist on quick joining and late relieving. While joining, they want us to join at the earliest, but when we resign, they don't relieve before 3 months. 😉😉😉😉

Dear Mirza,

You seem to be a bit frustrated, HR person. A bit rude response. Dear Ferenda, please remember "survival of the fittest" is the mantra nowadays, and it applies here also.

It is not always a question of job hopping or whatever words you have used like "no ethics" or "filthy." This phenomenon is not true always.

Though I agree with you to some extent, the job market is not that much "filthy."

In fact, some companies promise stars and the moon before issuing the offer letter, and after thorough inquiry, it turns out to be false. Furthermore, in some companies, the HR policies are so bad that employees feel suffocated within a week of joining and will resign immediately. I myself am a victim of the same.

Moreover, nowadays, there are plenty of jobs for highly talented people in almost all sectors, and they just want to cash in on the same.

I have quite a few friends who have not quit their organization, even after being lured (tall claims!!!) by other prospective employers for higher pay and other monetary and welfare measures.

Regards,

Guru.

Hi friends,

I found a good article about offer rejections. It seems interesting!

Ravi/Guru:

I am wondering how one can judge a person and give the verdicts without even communicating... my God... Well, I think Guru you are a genius...

To tell you; it is not that all companies have an unhealthy environment. Before signing the offer, you should read the offer made to you. Once you are satisfied with it, you can sign it, am I right? Then why is this notice period thing coming up now... This period would be there in the offer letter, and it varies from company to company. It can be 1 month, 2 months, or even 3 months.

"FRUSTRATED" - huh, I don't know on what basis you have indicated this, but anyways, I don't take it personally. It's your views, and we are talking about the reasons for offer rejections. What is it that you found which is not obvious?

Of course, there are guys who play around with the offers, and of course, yes, there are companies that show you heaven before joining them, but we are talking more in general.

Before giving the verdicts, try to see the ins and outs of it and then judge.

- Mirza

Dear Mirza,

Please note that just by reading the offer letter, you cannot determine if everything is correct with the organization.

What I am trying to tell you is that there won't be 100% transparency in the offer letter. In some organizations, even after thorough inquiry, you may not get 100% information about the company. In that case, individuals may become victims and tend to resign. Please note, this is not true in all cases but only in some organizations.

As a result, individuals may become more cautious. Before joining, they will conduct a thorough investigation, and there is a chance that they may decline the offer if they sense something is amiss with the organization.

You mentioned, "it is not that all companies have an unhealthy environment." Did I imply that all companies are like that? Please read my views carefully.

Please understand that I only stated that some genuine individuals reject job offers after sensing something wrong with the prospective employer following a thorough investigation.

I hope I have clarified my views now.

Regards,

Gururaj

Pragya Tejaswini,

As per my understanding of basic logic, I have developed the practice of providing an offer letter without specifying the salary amount. Instead, a statement with a detailed breakdown, signed by the HR head and the candidate, is included in the company's file. This approach ensures that the candidate is satisfied, and our goal is achieved. By doing so, the candidate is less likely to leverage the offer in the market.

Regards,
Mrudang

I have found that the candidate usually uses the offer to up the ante with his/her own company.

Priti V. Quinn

Hi Friends!

I would like to give an example of arranged marriages in Indian Society. Here,

Father of the girl - recruiter

Father/Family of the boy - candidate

Relatives/Friends - Consultants

When the father of a girl thinks it is time for his daughter's marriage, he consults the consultants with 'biodata' of the daughter. The consultant, with their contacts, floats the details of the biodata amongst the candidates' families. After the initial screening of age, qualification, height, etc., the shortlisted candidates are referred to the employer (father of the daughter).

At this stage, both parties do the reference check. IF THERE IS ANY PROBLEM WITH SOCIAL STATUS, REPUTATION OF ANY OF THE PARTY, THE MATTER QUIETLY ENDS. By no means does it go to the interview process.

After clearance in screening and reference check, the interview process is done. Again, the time for the interview is 30 to 45 minutes. Preliminary and if things work out well, the second. If at any stage candidates feel negative, they bring a quiet end to the process.

Once the commitment (not a written one) is given, both parties stick to it and do not step back. Such commitment is given after all the processes, and though there are many other options available in the 'market,' no parties think back after accepting the offer. And the relationship is carried on for a lifetime.

I know that there are some cases of forced marriage, but the procedure I have mentioned is the most prevailing in India.

Why are we so different in our social practices and professional practices?

- Hiten

What I feel is that candidates within 3 years of experience generally take up interviews with 2-3 companies at a time and select the best suitable offer. They accept the offer from all the organizations and sit on them to decide which one is the best. As an executive assistant to the COO, I have seen individuals even doing that for a position of Associate VP and GM levels. Being in the ITES/IT industry, I have observed that this practice is most common among operations professionals in IT and sales professionals in other sectors. Though I tend to believe that these practices are not as common among high-tier employees in textiles, heavy engineering, oil, and gas, such as niche sectors.

Guru:

That's fine. Let me fit myself into your shoes for some time now. Is this the right way of doing it? You tell me. There are many ways to learn about a company; there is no need to accept an offer and then start getting to know about that company, isn't it? When you receive a call from a company for a position, it is your duty to understand what the company is all about, their work, how they are growing in the industry, etc. It's not that once you have cleared all the rounds and accepted the offer, then you start hunting for information. This approach is not going to work. I would like others to share their views as well.

- Mirza

Hi Pragya,

The situation you are experiencing here is a very common and almost incurable problem. D. Mallick has provided the main reasons already. To be frank, there is no clear-cut solution for this problem.

Some solutions can be like maintaining a good rapport with the candidate by being constantly in touch with him professionally on a high frequency so that at least before dropping the offer, he would inform you in advance, thus giving you an amount of time to rectify the situation before it's too late.

Another is even though an offer has been made, go for backups like one or two in the pipeline, especially when dealing with the IT industry. It sounds cruel, but still, it keeps the numbers steady.

Hi Pragya,

As a recruiter, we should follow a transparent process right from engaging with a potential employee until they come on board.

1. Be clear and explicit in the job description, the company's business, and website. This is your sales kit.

2. Clearly state the competencies, skills required, and the level of proficiency needed.

3. Clearly communicate the experience requirements.

4. Share your budget range with the placement agency.

Ensure that points 1 to 3 are well-documented and provided to the consultant/placement agencies (if outsourced). Once 1-3 are completed, there should be no turning back unless the hiring decision is withdrawn.

Request the placement agency to commit to fulfilling these requirements. They should not simply copy and paste your requirements in an email or forward your emails. They are your ambassadors to potential hires. Ask them to use a checklist against points 1-3 and conduct the initial screening to gauge willingness and seriousness about the change. Experienced recruiters can assess this within 10-15 minutes of a phone call. Inquire about the candidate's compensation expectations, and if it falls within the range, proceed to the next steps.

Once the CV is shortlisted against points 1-4, schedule an interview promptly.

Ensure that a mutually agreed date and time for the interview are set and not rescheduled. Company-initiated rescheduling reflects poorly on the company's image.

The interview must start and end on time. Communicate the selection process to the candidate beforehand. Avoid selecting the interview panel while the candidate waits in the reception area.

Provide the documents related to points 1-3 to the interview panel and share the candidate's CV at least a day in advance for their preparation. This step is often overlooked but crucial to avoid embarrassing situations.

After the technical panel shortlists, HR should assess the candidate's fit into the organization and verify promises made during earlier interviews. Ensure transparency with the candidate throughout.

Once an offer is made and accepted, obtain a signed copy of the offer letter for moral commitment. Include the date of joining in the letter.

Following this, stakeholders should ensure the candidate joins by maintaining regular communication:

- HR should check the candidate's progress weekly/fortnightly regarding relieving from the current organization.
- The prospective manager should provide minimal project details to create a sense of urgency.

Avoid providing a second offer to a candidate if another company offers more. Upholding this practice contributes to a fair market value for competencies. Consistent adherence to these steps will lead to finding the right fit for the vacancy.

Employee referrals can be a successful recruitment channel. Apart from the moral commitment from the offer letter, the referring employee should also ensure the candidate joins, reflecting the company's external perception.

These methods are based on personal experiences and were effective in building teams during my tenure at a startup.

Regards,

Srivathsa

I agree with Mirza on this one point: the DOJ should be actioned as soon as possible. Also, the recruitment process should be expedited. Don't give them time to even think. We cannot complain that people are job shopping now. Just like a salesman, sell your company to them. In a sense, highlight your good points, the good policies, and procedures. Don't be too uptight in your approach, because after all, you represent the company. Overall, the emphasis should be on what we will offer them that they have not been getting.

Hi @Rohita2208 and MIRZA,

Why don't you understand that when a candidate has to join you, he has to resign from somewhere? So, if you ask him to join ASAP, what do you expect him to do? Are you ready to pay his notice period? What if he has a 3-month notice period? Even if he joins and tomorrow he gets a good offer, you would tell him the same thing - that you can't release him soon. However, his new employer would want him ASAP. Here, not all companies are prepared to release their candidates promptly but expect new joiners to start ASAP.

Doesn't anyone recognize or understand this common sense? How long will this situation continue like this?

Thank you.

Hi Pragya,

Hope you're doing quite well. I've enclosed a document which contained the answers for your questions, i.e., Why the candidates reject offers and How to put a stop to it. Please find the enclosed Word document.

Thanks & Regards,
K. Sridharan, MBA, MHRM, MA, D.L.L

Hi,

I think the basic reason for rejecting the offer is salary, but there are so many other reasons like a better designation, better role, better company, better project, or the present company might have hiked his salary, etc.

Hi Srivathsa,

Thanks for the detailed insight.

Few Points to Ponder:

I agree a rich interviewing experience helps. But that doesn't seem to be a binding force for the Candidate.

Sometimes I may not hire directly for a project but for the bench, which is an integral part of the IT world now. What do I sell to these candidates?

Also, when you say we should not make a second offer, are we talking about a counteroffer?

There have been instances where a candidate did not join my organization say six months back, but now wants to apply again. Do you think such reversals should be allowed? My experience tells me that 72% of these dropout reversals do work out.

Need your comments. Also, tangent to the issue at hand, would be helpful if you could suggest the ER benefits that you suggest are helpful.

Regards,
Pragya

Ravi:

You try to understand my previous posting and then talk about something on that. I have clearly put across that once the guy is clear of everything, then he can attend the interviews and go till the offer; otherwise, there is no need to waste his and the company's time - am I right? What do you say on this - please comment?

The basic fact is that one has to have an idea of what he is going to do. If he is clear about his goals and ambitions, he would not go and attend all the interviews whichever company had called. So, it's better to have ethics in everyone so that everything would go smoothly - what do you all say on this?

About the DOJ and notice period, if mutually agreed, then only we would come to a conclusion. If a company needs that guy, they will definitely buy out the notice period, and it is happening. Of course, I have done it for my company.

Hope you are clear now.

Thanks,
- Mirza

Hi all!

I would like to know your views on a recruiter paying for the notice period of a candidate so that they can join immediately. Would you do this as a recruiter?

Apart from the ethical issue of the recruiting company allowing the candidate to leave their current employer before fulfilling their notice period, I would also like to discuss how long you would require the employee who has resigned to attend the office.

Our company follows the policy of relieving a manager within one week of resignation. "A stale fruit in the basket will spoil others as well." For junior positions, the employee is required to attend duties for a full month.

Recently, for junior positions, we have decided that even if the employee opts to pay the notice period, they will only be relieved after one month.

Your views.
- Hiten

Hi All,

The reasons behind candidates rejecting offers have been rightly put across by all the fellow members. I would like to share some practices that my organization (a manufacturing company) has taken in order to reduce the instances of offer rejection.

1. We have reduced the lead time of making an offer to 1.5 days.

2. The compensation executive will have a thorough discussion with the candidate before sending him an offer.

3. We send the company newsletter and other communication pamphlets to the candidates along with the offer letter so that the interest in the organization is sustained.

4. We have realized that recruitment consultants play an important role, so we have included them in the whole process. We had recently felicitated our top 5 recruitment consultants and also shared with them the best practices in HR followed in our organization. We also regularly send them communication pamphlets so that they, in turn, can pass it on to our prospective employees. We have also prepared a PPT of the practices followed and send it to the candidates to whom we have made an offer.

5. We are in the process of preparing a standardized interview call letter which will circulate to all our consultants. The call letter will inform the prospective candidates of facts about the organization that are not mentioned on the website.

Thanks,

Ligy Jose

Hi,

IT people play with offers because they know they have many opportunities in the market. According to me, what we all can do to stop it is if any candidate says he already has an offer, we should not entertain them. Increment for every candidate should be 30% on their Current CTC, not more than that. Actually, when we interview them, we can find out that they are not worth that much. For our performance, we have started paying them good salaries to join our organization, and that's the biggest mistake we have made. But, I think it's not too late now; we can start this procedure once again. Then they won't have any options, and the market will come to normal again, and they won't play with offers.

Correct me if I am wrong...

Dear Mirza,

This site is meant for sharing knowledge, not for arguing. I would like to put an end to this argument because I don't want to waste my time and others' time in unnecessary disputes. I hope you understand. Anyway, to be very clear, I am presenting the following facts before you.

Okay, whatever you have said, i.e., ascertain everything about the company before joining if everything is okay, and then join; otherwise, don't join. This is okay, but please understand very clearly that in some companies (not all), not everything about the company is known before joining, no matter how much is enquired or background check is made. You have to experience firsthand to know about the fate of the company and your position. As some gentlemen on this site have rightly said, sometimes people won't leave the organization, but they leave their managers (or reporting managers or bosses). Some of the facts like attitudes of the managers, or some of the policies of the company, the responsibility/roles given to the new candidate, or even in some instances the nature of the job itself, is totally different from what has been indicated during the interview/issuance of the offer letter... and there are multitudes of such factors one may encounter in the new organization where they are employed. Hence, one may tend to resign or reject the offer.

Moreover, I have expressed my views based on my experience and (in fact, myself and one of my friends who had an excellent track record in the previous company are victims of such kind) also the general trend that is happening, which I have come to know from some reliable sources.

If you don't agree with me, well, please don't react, and let us concentrate on sharing knowledge through this excellent site, something that is very useful to all.

Thanks and regards,

Gururaj.

Nowadays, almost 90% of people in IT are running behind money. They don't care if the company that pays them the best wants them to work on any old technology or gives them a junior role. This is affecting their career. We should inform them about it.

Guru,

I didn't mean anything personal, and I didn't want to prolong this session as it is a waste of my time. However, I just wanted to share the views, which I did. In fact, you didn't like it and behaved in a different way because you are a victim. I don't know whatsoever it is.

Anyways, let's end this session for now and let's share new things. I would really appreciate your time in spreading your wings and giving your broad spectrum of ideas. Let's cheer up and forget about this. There are many other things we can closely discuss and share than this offer rejects topic, I believe.

Let me ask you one query again. I have already put this across to the HR Gems here, but I am still looking for a more detailed response. How can one develop his perceiving skills? Discuss and give your comments, and of course, others as well can share their views.

Thanks,
Mirza

Can't we blacklist these consultants using STPI or CMM levels authority so that he/she cannot join anywhere once he/she has been offered by any STPI or CMM level company?

Please suggest.

I do not want to start from zero again in a new company with the same designation or in the same role. I do not want to leave the comfort zone that he or she earned in the previous job.

---

Yes, almost so many people are trying for new offers, but they are not accepting the offers. Instead, they are looking for bigger offers to market themselves by showcasing the offers they have received.

Hi,

How many of them can make such decisions is the question? The candidate may be too good; the position to be filled is very critical. Any of these factors can prompt a person to offer the candidate the position immediately.

Shobha