Why Do Candidates Back Out of Job Offers Last Minute and How Can We Prevent It?

Hi, I am working in a startup IT company and facing a major problem in bringing the right candidates on board.

Why do candidates decline job offers at the last minute? How can I control that?

There could be a couple of reasons why job candidates decline a job offer at the last minute. One is the wrong selection. Apart from assessing suitability, you need to check how strong the candidate's need is. If the need is strong, then candidates are more likely to switch.

The second reason is your company's status as a startup. It is a dream for every job candidate to work in a branded company. If not in a branded company, then they might opt for at least mid-segment companies. Startups are often at the bottom of their list of choices.

The third reason could be the work environment. Once the job candidate steps inside the company premises, do they experience a pleasing environment? I do not mean that you should have very high-end decor or ambience. However, the location of the company, the road that leads to the company, and the actual interiors also matter.

Another reason could be the existing staff. Do they have a professional approach towards their potential colleague? How are their communication skills, body language, etc.?

You need to navigate through these initial challenges. These are common across industries. Despite these challenges, work on growing your company into a brand and overcoming these problems.

All the best!

Regards, Dinesh Divekar

Unless your compensation package is too attractive to resist, candidates with skills in niche areas whom the startups try to recruit to overcome survival hiccups, you may have to face this trend. Mr. Dinesh has given you a list of reasons. Please do some research to diagnose the causes so that you can find an appropriate remedy for it.

B. Saikumar

Apart from the comments given by other members, I would say it's a Pandora's Box. There are multiple reasons for a candidate to reject an offer. The main challenge I see is that any candidate, after getting his or her first offer, will be very confident, and their performance in other interviews would drastically improve. Also, being human, they tend to take chances by attending multiple interviews simultaneously.

Nowadays, I see many candidates wanting to join startups. The main two reasons I see are the salary package and the culture of the organization. If you ask a candidate to name 20 startups, how many would be able to apart from Flipkart, Mu-Sigma, Snapdeal, Myntra, etc.? Bangalore, India, has the maximum number of startups (more than 17,000) in the world, followed by New York, US.

Regards

Addressing Candidate Decline in IT Startups

It's a very common issue, especially in IT startups. Below are a few points that might need consideration:

- Regular follow-ups and open interaction will help gauge the prospective candidate's intention of joining.
- It's crucial to know their current employment status: Have they already resigned? How many days are pending in the notice period? What is the reason for the job change, etc.?
- Consider the candidate's job change priorities: Are they looking for monetary gains, job security, perks, and benefits, etc.?
- Also, something as trivial as their mode of commute to work plays a huge role as a deciding factor.
- One can also outline the growth plan for the prospective candidates so they have a clear picture of their future in the company.

Hope this helps. Good luck.