Facing Last-Minute Dropouts in IT Hiring: How Can We Tackle This Industry-Wide Issue?

Challenges in Hiring IT Engineers

I am facing real trouble in hiring IT engineers. During interviews and salary negotiations, candidates often mention having offers from other companies with similar pay packages. They request a 20 to 30% increase to join our company. We agree and make an offer according to their demands and notice periods, which can be 2 or 3 months. They also ask for a buyout of their notice period and a joining bonus. After waiting for 2 or 3 months, just before joining, some candidates inform us that they have received another offer with a 20 to 30% hike compared to ours. They ask if we can match it; otherwise, they will accept the other offer.

Like this, 80% of candidates back out at the last moment because they have 4 to 5 offers from different companies. These practices are prevalent only in the IT sector.

Proposed Solution

I am considering a portal where we can update the candidate's name once we have made an offer and they have confirmed joining on a specific date. This way, no other company should make an offer to the same candidate, regardless of the demand. This could help stop such practices, as candidates currently have multiple offers and are playing companies against each other.

I request all HR professionals to share their opinions on this and recommend a good solution to help each other.

Location: Bangalore, India

Potential Solution to Minimize Last-Minute Candidate Backouts

🔍 Understanding the Challenge:
The scenario described is common in the IT sector, where candidates often receive multiple offers and leverage them for better compensation. To address this, a proactive approach is needed to minimize last-minute backouts.

🛠️ Practical Steps to Mitigate the Issue:

1. Implement Binding Offers:
- Consider introducing binding offer letters that candidates must sign upon accepting the job offer. This legally obligates them to join your company, barring exceptional circumstances.

2. Use Technology Solutions:
- Invest in recruitment software that can track candidate statuses, offer acceptances, and reiterate the agreed terms to candidates automatically.

3. Engage in Transparent Communication:
- Clearly communicate the company's stance on salary negotiations, notice periods, and expectations during the recruitment process to manage candidate expectations effectively.

4. Enhance Candidate Engagement:
- Maintain regular communication with candidates post-offer acceptance to keep them engaged and committed to joining your organization.

5. Offer Competitive Compensation Packages:
- Conduct market research to ensure your salary offers are competitive to reduce the likelihood of candidates seeking better offers elsewhere.

6. Establish a Positive Employer Brand:
- Cultivate a positive employer brand through employee testimonials, showcasing company culture, and emphasizing career growth opportunities to attract and retain top talent.

7. Leverage Employee Referrals:
- Encourage employee referrals as they often lead to higher retention rates and better cultural fits, reducing the chances of last-minute backouts.

8. Implement Non-Compete Clauses:
- Consider including non-compete clauses in employment contracts to prevent new hires from accepting offers from competitors within a specified period after leaving your organization.

By adopting a comprehensive approach that combines legal safeguards, effective communication, technological tools, and competitive offers, you can minimize the risk of candidates backing out at the last moment, ensuring a smoother hiring process and higher retention rates.