Candidates tend to stick to their old company when they are offered a better and competitive salary hike - How to prevent offer declines?

Hi, It has been found that even after accepting a job offer at any company, the candidates tend to stick to their old company when they are offered a better and competitive salary hike than the company they are about to join. And in such scenario, the candidate often choose to accept the offer and stick to their previous company.As an HR, I have faced such scenario when at the last moment, the candidates would back out from joining the company (even after agreeing to the salary offered). I know that every company has their employee retention policy but, I want to know that as an HR how to handle such scenario?
Thanks & Regards,
Paulomi

Dear Paulomi,

Declining job offer is a malaise that haunts all the industries. Nevertheless, we need to investigate the reasons for it and corrective measures.

The first reason could be the lack of seriousness of the candidate. Possibly they could be attending interview just to test the water. When they do not find attractive offer, they back out. Therefore, you must check the quantum of raise that you are ready to offer.

Second thing is about the work environment or the location of the company. Now a days job candidates prefer neat and clean environment and dislike worn out building or interior. How your office or work area looks like? Does it give a modern look or dated one?

Third thing is about the quality of the interviewer. Does he/she have habit of bossing around and treats the job candidates same way? If the interviewer is unfriendly or sends a signal that he/she will have tight control over administration, then it could dissuade job candidate from joining the company.

Fourth is the brand image of the company. Is yours a national brand or state level brand or no brand at all? Everybody likes to work in a branded company and job candidates desist from joining a company that has low brand image. I have seen many top notch companies paying remuneration lower than the market standard but they have very strong brand pull. Candidates get attracted towards the brand and forego the high remuneration. Of course they do not stay for long that is a different matter. But then think that every day spent in the company adds value in their CV!

Lastly, does your company have negative reputation in the job market? Owners of some of the companies have habit of sacking the employees left and right. This continues for few years but over a period of time it creates a negative brand image in the job market. Ex-employees are supposed to be positive spokespersons of the company. But what if they turn negative spokespersons? With so many channels of social media on their finger tips, it does not take long to spread the wrong message.

These are some of the reasons that I have cited. You may discuss with your superiors about backing out of the job candidates. Do the analysis and tell him how many candidates backed out in what span of time.

Backing out the job candidates or no show by the candidates spells nightmare for the company. If it is replacement, then the resigning employee resigns but newcomer does not join. This hampers the smooth work and could be impacting the customer satisfaction. The extra workload could be demotivating the existing employees. Therefore, this matters needs to looked into with due sensitivity.

Thanks,

Dinesh Divekar

We tend to schedule the interviews on weekdays. If candidate is really interested he applies leave and appears for interview.
We check salary standards once in 3 years and upgrade pay packages.
We hand over an offer letter after candidate is selected without CTC particulars. We believe that this thwarts the move of the candidate to negotiate with his present employer.
These are few moves we take to achieve better success rate to recruit candidates

Further to what our learned professional Mr. Divekar has written very lucidly, some candidates appear interview just to know the market trend, their market value and also to refresh their ability to attend an interview. Before even calling the candidate for interview, the HR department need to analyse reasons for a candidate wanting the job offered by you. Normally, a resume is likened to a bikini. It does not reveal what you really want to see ! A bit of his past positions held, reasons for quitting etc. will play a crucial role in deciding to call a candidate or otherwise. In L&T, we used to have an 8 page standard employment form. Once you go through the form, one can easily assess and decide whether you should call the candidate for interview or not. To that extent, your efforts, interviewer's efforts are all saved to a great extent.

An offer does not vest a right to employment in the candidate, these are the words some of the offers from the market carry. Under present situation in the job market, candidates also think twice thrice even after they have accepted an offer. IT & some companies from other sectors have withdrawn offers even after the employee resigned from the present job and went to join. Some times the candidates are benched and then advised to search for the new job as the offering employer was unable to accommodate the candidate.
The situation you will continue to face as the indifference/insensitivity on the part of offering employers or we may give it any suitable name like business compulsions/changed situation has sunk into the people and made them extra careful. If the existing employer revises/matches the offer, they will stay back as known devil is better than unknown angel.
No one can prevent this.