How Do You Handle Candidates Backing Out for Better Salary Offers from Their Current Jobs?

It has been found that even after accepting a job offer at any company, 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. In such scenarios, the candidate often chooses to accept the offer and stick to their previous company. As an HR professional, I have faced such scenarios where, at the last moment, candidates would back out from joining the company even after agreeing to the salary offered. I understand that every company has its employee retention policy, but I want to know how to handle such situations as an HR professional.

Thanks & Regards,
Paulomi

Dear Paulomi,

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

Reasons for Declining Job Offers

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

The second thing is about the work environment or the location of the company. Nowadays, job candidates prefer a neat and clean environment and dislike worn-out buildings or interiors. How does your office or work area look? Does it have a modern or dated appearance?

The third thing is about the quality of the interviewer. Does he/she have a habit of bossing around and treating job candidates the 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 candidates from joining the company.

The fourth is the brand image of the company. Is yours a national brand, a state-level brand, or no brand at all? Everybody likes to work in a branded company, and job candidates resist joining a company with a low brand image. I have seen many top-notch companies paying remuneration lower than the market standard, but they have a very strong brand pull. Candidates are attracted to the brand and forego the high remuneration. Of course, they do not stay for long, but every day spent in the company adds value to their CV!

Lastly, does your company have a negative reputation in the job market? Some companies have a habit of sacking employees left and right. This continues for a few years, but over time, it creates a negative brand image in the job market. Ex-employees are supposed to be positive spokespersons for the company. But what if they turn into negative spokespersons? With so many channels of social media at their fingertips, 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 the job candidates backing out. Do the analysis and inform them how many candidates backed out and in what span of time.

Impact of Candidate No-shows

Backing out by job candidates or no-shows spell nightmares for the company. In the case of replacements, the resigning employee resigns but the newcomer does not join. This hampers the smooth workflow and could impact customer satisfaction. The extra workload could be demotivating for existing employees. Therefore, this matter needs to be looked into with due sensitivity.

Thanks,
Dinesh Divekar

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

Further to what our learned professional Mr. Divekar has written very lucidly, some candidates appear for interviews just to know the market trend, their market value, and also to refresh their ability to attend an interview.

Analyzing Candidate Motivation

Before even calling the candidate for an interview, the HR department needs to analyze the 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.

The Role of Standard Employment Forms

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 an interview or not. To that extent, your efforts and the interviewer's efforts are all saved to a great extent.

The Reality of Job Offers in Today's Market

An offer does not vest a right to employment in the candidate; these are the words some offers from the market carry. Under the present situation in the job market, candidates also think twice, even thrice, after they have accepted an offer. IT and some companies from other sectors have withdrawn offers even after the employee resigned from their present job and went to join. Sometimes, candidates are benched and then advised to search for a new job as the offering employer was unable to accommodate them.

Challenges Faced by Candidates

The situation you will continue to face is the indifference or insensitivity on the part of offering employers, or we may give it any suitable name like business compulsions or changed situations that have sunk into people and made them extra careful. If the existing employer revises or matches the offer, candidates will stay back as the known devil is better than an unknown angel. No one can prevent this.