IT Engineers Hiring Process - 80% Candidates Ditching Our Company at the Last Moment

Hi All HR,

I am facing real trouble in hiring IT engineers. At the time of the interview and negotiating salaries, they will ask if I have an offer from another company with this Pay Package. If you offer 20 to 30% more, I will join your company. We agree and make an offer as per the demand and the notice period, some are 2 months, some are 3 months, and they ask to buy back their notice period and a joining bonus. After waiting for 2 months or 3 months, just before joining, some people call and say they have received an offer from another company offering a 20 to 30% hike compared to your offer. They ask if you can match it, or they will take the other offer.

Like this, 80% of candidates ditch our company at the last moment because by this time, he/she has 4 to 5 offers in their hands from different companies. These practices are happening only in the IT sector.

I am thinking this way, if we have a portal where we can update the candidate's name whom we made an offer, and he/she confirmed to join us on a specific date. At the same time, no other company should make an offer to the same candidate, whatever the demand, then only these types of gambling will stop. Otherwise, one candidate is having 4 to 5 offers and gambling with companies.

I request all HRs to suggest all your opinions on this and recommend one 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.