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Candidate declining offer after accepting
Human Resources » Recruitment & Staffing

Chrm Message From: wilfreddsa Total Posts: 25 Join Date: 07/08/2007
Rank: Executive Post Date: 26/10/2009 11:32:15 Points: 125 Location: United States

Dear Folks,

Recently we have encountered issues like people accepting offer and declining it just before the joining date. This purely seems to be a case of misusing the offer for getting higher benefit.

Friends, these kind of issues have become rampant and this is just not accepted. Because recruitment process takes lot of time, energy, money and resources. We tried finding out the reason why this could happen, is it the trend being followed which is ethically so wrong.

Friends I seek some advice from the group to counter this kind unethical move which is become so common these days. Please share with us some of the best practices followed in the industry to counter this unethical move.



Chrm Message From: maheshwari Total Posts: 24 Join Date: 07/08/2007  
Rank: Executive Post Date: 26/10/2009 11:46:02 Points: 120 Location: United States

Dear Wilfred,

“This purely seems to be a case of misusing the offer for getting higher benefit.”

We need to know the following:-

1. Expectation of the person.
2. Location where he stays.
3. What is the priority going in his mind(this one should know how to read the same)
4. Is he accepted in his previous company (i.e. will his company retain him if he resign)
5. What other options one is looking forward for.

These are few practical reasons I have seen.

Shall be glad to hear other member's views on this.

Chrm Message From: rajeshroy Total Posts: 55 Join Date: 07/08/2007  
Rank: Manager Post Date: 27/10/2009 10:50:13 Points: 275 Location: United States

Dear all,

I think there is no question of ethics in this issue. If the applicant is able to get a better offer for his/her qualifications, why he/she should join for a lesser compensation. Also we cant sustain such employees who look only for money in longer run, anyway they will go after joining, if they get a better pay

The only solution is creating a wonderful work culture in the organization so that, good people (who dont just look for money) will prefer your organization and sustain for longer. That is, creating commitment among employees/applicants by making them understand that your organization is the best place to work, is the only solution.


Rajesh Roy

Chrm Message From: kaushik Total Posts: 61 Join Date: 07/08/2007  
Rank: Manager Post Date: 29/10/2009 03:21:41 Points: 305 Location: United States

Dear All, 

The following could possibly reduce this incidence.

1.A thorough screening of the candidate about his seriosness and specific counts why he is looking for a change.

2.Antecedent verification from his previous employers.

3.By and large employers are vary of retaining people when they resign.If they are doing then its not a respectable HR practice.You are expected to take care of people when they are with you and not when they are leaving!

4.Employee also has to be carefull when he gets in to this kind of a thing. There will be issues with colleagues when this kind of retention is done.

5.As I said best efforts are to be made to secure recruitments and retentions.HR Managers also need to be transperant.For example I have always told the candidates the reasons as to why the vacancy has arisen and why the person left.

Well friends beyond that you may run the risk but you follow good practices,you may not face this.


Chrm Message From: raghu Total Posts: 51 Join Date: 07/08/2007  
Rank: Manager Post Date: 29/10/2009 03:24:17 Points: 255 Location: United States

Hi wilfred,

Thanks for raising this genuine concern which is widening now in the industry, especially in IT. Well, we have been struggling with the same problem and I am sure every company today.

I have done a detailed analysis of the reasons of back-outs and if you allow me I would like to share them below:

1. People look for change for various reasons, some of the very common reasons are, Monetary Growth, Vertical Growth, Sense of Security, Family Reasons, Location Constraint, Inter-Team conflict, Illness etc. If one goes in the deep of the above reasons and explores the real situation and thoughts of the candidate's mind, the back-out ratio can be brought down.

2. Competition plays an important factor in this. Especially in the IT industry, the salaries are high and that creates the negotiation factor in the mind of the candidate, which gets into a never ending loop, ultimately the loss is caused to the employer. Therefore, what best can be done to refrain this is to check the needs, responsibilities and dependency level of the candidate to find out how important money is for him and how much obligation he has, if you find that the candidate is freaky/ money minded, do not decide the offer.

3. There is no ethics in business; it's a famous quote by a renowned business man. One looks for the best in its favor. Infact, employers are also not different. When it comes to hiring a person, we evaluate many and choose one. So we should be ready for the same act from the candidate's side. Though steps can be taken to decrease this.

4. In generic situations, there could be number of ways to decrease the back-out ratio. Proper and Transparent communication plays the most important role here. Every company is offering high salaries but this is not the only factor which influences the minds, there are many other like Joining Bonus, Onsite Assurance etc.



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