Handling No-Show Candidates: Is Legal Action a Viable Option for HR?

Hi All,

Despite having a transparent and crisp hiring process and maintaining continuous candidate engagement, some candidates simply do not respond or inform us that they are moving on, leaving us waiting. How should one address this situation? Is it appropriate to issue a legal notice considering the significant amount of time and money invested in the candidate?

Has any company implemented effective measures to prevent such occurrences? If so, please share.

Thanks!

Bhakti

Understanding "No-Shows" in Job Hiring

Job candidates appear for interviews, get selected, and receive offer letters. However, if they do not show up at the time of joining, it is considered a "no-show." Have you investigated the reasons for these "no-shows"?

Some of the reasons could be as follows:

a) Unattractive salary offered
b) Unappealing work environment or office culture experienced during the interview
c) Subpar quality of the selection process, with interviewers, especially top bosses, projecting a negative image
d) Company lacking a strong brand image compared to competitors
e) Negative publicity about the company by former employees
f) Job candidates not in desperate need of employment
g) Company having questionable records regarding the regularity of salary or allowances payment

There could be several other reasons as well.

Legal Considerations in "No-Show" Situations

Your question pertains to the possibility of taking legal action against a job candidate for failing to honor the terms of the offer letter. It is important to note that an offer letter is not an appointment letter and cannot be considered a contract per se. Legal action can be pursued if the job candidate provides an undertaking stating that they will join the company on a specified date, and failing to do so gives the company the right to take legal action. Including such a clause in the offer letter may deter many candidates from accepting the offer.

Leadership and HR Challenges

For small and medium enterprises (SMEs), "no-shows" are often a reality. It is not just an HR challenge but also a leadership challenge. Therefore, leadership should focus on growing the company, building a positive brand image, and ensuring that job candidates are eager to join the company rather than the other way around.

Thanks,
Dinesh Divekar

Thanks, Dinesh, for the detailed answer. Yes, I do know that adding that clause in the offer letter is not a good idea, but the culture, brand image, and reviews by former employees are all good. We don't bloat up the CTC package; we are at par but don't do counter offers or use money as the only motivator. I clearly see people choosing only money over technology and the kind of work they will handle and the support they will get. Yes, we will open this up to leadership and see.

No shows do take place.

There is no scope whatsoever to take action against candidates who commit "No show".

Dear Bhakti,

This is my supplementary post to the previous one. Earlier, there were similar queries wherein experts have given their comments. You may check the following links:

https://www.citehr.com/470887-can-co...candidate.html

https://www.citehr.com/580988-how-pr...-declines.html

https://www.citehr.com/471810-penalt...s-rethink.html

Thanks,

Dinesh Divekar

Thanks for the links, Dinesh, and I do understand your point. It also rests on the clause of an offer letter; our offer letter clause includes the following:

Loss of Opportunity

By signing this letter, you agree to reimburse <<our company name>> for the recruitment costs and loss of opportunity caused by not joining duty on or before the agreed date. The cost applied to you will be the equivalent of 30 days of the CTC mentioned in this document.

This is a RightSignature offer letter that gets signed by both parties. My point is simple: if the CTC is not attractive or a candidate is not happy with the culture, he has all the right not to sign. If he has signed, at least intimate us that he is not joining. Why play the fool of a no-show? This candidate that I am chasing spoke to me on Friday and, two hours before coming, asked about the dress code, etc. He seems to be playing this prank with many SMEs, and I want him to think before repeating this mistake. If a candidate, after signing, lets me know two days in advance, I just move on and leave it there. But now, I see a different breeze blowing, which is unhealthy for SMEs.

Glassdoor Reviews

"Glassdoor reviews" are for companies, and it's all good for us there. What about a Glassdoor review for candidates who are purposely notorious? I hope SMEs sit together and create a movement wherein we help each other and signal each other to not fall prey to unethical behavior.

Loss of Opportunity

By signing this letter, you agree to reimburse <<our company name>> for the recruitment costs and loss of opportunity caused by not joining duty on or before the agreed date. The cost applied to you will be equivalent to 30 days of the CTC mentioned in this document. This clause will not hold water in a court of law. Proving opportunity cost is difficult, especially for middle or lower-level employees. Don't get carried away by the behavior of a single person. There is really no loss of opportunity as another person can be hired.

Usually, companies write - if you do not join by ----, the offer is treated as canceled.

[Links provided by user]

- https://www.citehr.com/470887-can-co...inst-candidate
- https://www.benivo.com/blog/how-to-p...lling-no-shows
- https://economictimes.indiatimes.com...ntenttarget=no

There may not be a legal scope to force a candidate to join after receiving the offer letter. In many cases, candidates negotiate the salary package in their current company and once they receive a higher salary, they decide not to change jobs.

Some companies retain some of the original documents/certificates when issuing the offer letter and return them after the candidate joins. This practice may not be completely effective, but to some extent, it may work.

Tips for Handling Candidate Engagement Issues

Being a recruiter and HR professional, such issues arise every now and then. Yes, we are human too, and we get frustrated. After spending five years in HR, I am a bit more able to screen candidates' interest while issuing the offer letter. Here are a few tips that I hope will be helpful:

1. Just stay in touch with the candidate. Check their attitude. Once you issue the offer letter, if the shortlisted candidate starts ignoring your calls, then it's high time to start taking the backup. Backup is always good so you don't have to start the search again.

2. If you use naukri.com or some portals to search for candidates, search for the shortlisted candidate. If they are regularly updating their CV, then they might just be using your offer letter.

3. Ask for a resignation email from their current employer. It is crucial to understand the candidate's commitment.

4. At the time of the interview, check their psychology. Ask indirectly how keenly they are looking for a job. Whether they are just looking for a pastime or a serious change. Inquire about the number of recent interviews they have attended. I understand that not everyone will answer genuinely, but you need to understand their mindset.

5. MOST importantly, check the CV

If a candidate is completing their one-year tenure or is about to reach their appraisal time, then do not consider them. There is a high chance that they will use the offer letter to negotiate a higher value in their current or future companies. If you still need to consider them, ask for proper reasons why they want to switch before their increment.

These are my learnings. I don't know how seniors will perceive them; pardon me if I am wrong somewhere.

Now, in the last point - Don't get frustrated. Just call those candidates after 15-16 days and politely inform them that such behavior puts your stake at risk. The market is small, and we keep meeting again and again, so if you want to decline, do it honestly. It will save time and reputation for both of us. Then don't wait for their reply; end with a thank you note.

Accepting/declining is up to the candidate. Don't take it to heart. This tendency cannot be curbed. Stay positive.

All the best!