What to Do When A Candidate Declines a Job Offer — After Accepting

So, your dream candidate just pulled a Houdini after accepting their offer, and you don't know how to deal with it? You're not alone.

More people decline a job offer after accepting than you might think. More than half of all job candidates have accepted an offer only to back out before starting, according to a 2023 Gartner survey. 

Although it might feel like a wrench in your plans, there's no need to freak out just yet (or ever!). Having the right processes and strategies to deal with this situation can help you thrive and learn. Indeed, beyond improving your resiliency, you can use this opportunity to pick an even stronger candidate by leveraging the data you've acquired from the almost-new-hire and the first round of recruiting. Who knows —once you implement these tips, you may later be thankful for your hire's sudden change of heart!

Phase 1: Immediate Steps — Damage Control & Professionalism

Before you start crying into your "World's Best Recruiter" mug, think about damage control. Although your first instinct might be to send an annoyed email, the following steps can help you handle this professional plot twist with the grace and elegance of a ballet dancer:

1. Acknowledge and respond promptly: When someone backs out so shortly before starting a new role, time is of the essence. Respond to that "Thanks, but no thanks" message as soon as possible. A quick but professional response shows you're cool as a cucumber.
2. Express understanding and gratitude: It's time to channel your inner Zen master. Although you may want to tell them off for their unprofessional behavior, thank them for their honesty and for letting you know as soon as possible. Burning bridges is not a habit you want to get into, as you never know when your paths might cross again.
3. Initiate a candid conversation: If you're feeling brave, consider asking for a chat. It's like an exit interview for a job that never started — weird, but potentially insightful. You might learn about your recruiting process from a different perspective, which could help you improve in the future. Just remember to keep the conversation low pressure.
4. Inform relevant stakeholders: Time to spread the word faster than office gossip. Inform everyone who needs to know. This includes the hiring manager, others in HR, IT (so they don't order that new laptop), and anyone else prepping for the new hire. Keep it brief, professional, and as drama-free as possible.

Email Scripts for When a Candidate Rescinds a Job Offer Acceptance

Not sure how to start your response? Don't fret. Here are some email templates to help you get through this awkward situation.

The "Thank u, next" approach

Dear [Candidate's Name],

Thank you for letting us know about your decision. While we're disappointed, we appreciate your honesty and prompt communication.

We wish you all the best in your future endeavors. Should your circumstances change, please don't hesitate to reach out.

Best regards,

[Your Name]

The "Tell me more" approach:

Dear [Candidate's Name],

Thank you for informing us about your change in plans. While we're saddened by your decision, we respect your choice and appreciate your transparency.

If you're open to it, we'd welcome the opportunity to understand what led to this decision. Your insights could be valuable for our continual improvement efforts.

Regardless, we wish you success in your career path.

Best regards,

[Your Name]

The email to your team:

Team,

I regret to inform you that [Candidate's Name] has rescinded their acceptance of our job offer for the [Position] role.

We're working on next steps and will keep everyone updated. In the meantime, please pause any onboarding preparations.

If you have any questions or concerns, please don't hesitate to reach out.

Best,

[Your Name]

Phase 2: Reflection & Analysis — Turning Setback into Insight

This candidate might have left you at the altar, but there's more to learn before we finally move on. It's time to investigate and gather as much information as possible. 

Review the Candidate's Journey

Your first task is to review the candidate's steps like you're following breadcrumbs in a forest of job applications. Some of the things you'll want to look out for are:

• Red flags: Were there any hesitations or weird vibes you ignored because of a shiny resume?
• Feedback: Did they mention any concerns you may have brushed off too quickly?
• Engagement: Were they as excited about the role as you were about having them on board?

Remember, hindsight is 20/20, and that can be useful. In this case, it might save your hiring goals for the rest of the year. 

Assess the Role and Offer

Take some time to evaluate your final offer. Maybe you haven't updated the job details and your competitors are offering a better total compensation package. Now's a good time to review:

• Salary: Was it competitive, or has the industry exceeded your offerings? One in four recruiters find they cannot compete on salary requirements, according to Statista.
• Benefits: Did your perks package wow them, or could you do a little better?
• Role description: Was the job description clear and concise, or was it ambiguous and open to scope creep?

Examine Onboarding & Hiring Process

Recruiting is one of the most critical tasks for any HR leader, which is why it's always a good idea to take advantage of any opportunity to improve it. Almost half of all HR leaders reported recruiting was their top priority for the year in a 2023 Gartner survey. Couple this with the fact that replacing an employee can cost up to three times their yearly salary, according to a 2022 SHRM study, and it's not difficult to see why improving this process is worthwhile.

Some things to consider are:

• Timeline: Even in the most bureaucratic organizations, you want a reasonable timeline from first interview to first day.
• Communication: Applicants should have an easy way to communicate with their prospective employer during the interview and onboarding process.
• Onboarding plan: A scary-looking onboarding plan could easily turn potential employees away.

Gather Team Feedback

You're not alone in this. Ask your team for feedback! Anyone who interacted with the hire who got away can contribute to the conversation. Some people you might want to informally interview are:

• Interviewers: Did the candidate charm them, or did they smell something fishy?
• Hiring managers: Ask them if they were ecstatic about the new hire or just crossing their fingers and hoping for the best.
• Hiring team: Did the process run smoothly, or was onboarding more like herding cats?

Phase 3: A Good Candidate Experience — Bolster Employer Branding

Just because the candidate rescinded their acceptance doesn't mean you should tarnish your employer's brand by acting unprofessionally in return. Here's what you can do to keep it classy, even in awkward situations like these.

Maintain a Positive Tone

No matter how much you want to scream into your pillow, keep it professional. In the age of social media, today's declined offer could be tomorrow's viral nightmare. Respond with grace, remembering that your reputation is on the line. This can have a ripple effect on the rest of your team, as organizational brand-building actions positively influence employee-based brand equity, which in turn indirectly promotes organizational brand equity, according to a study published in Frontiers in Psychology.

Leave the Door Open

In recruiting, candidates who decline offers occasionally reconsider later. Maintain a positive relationship with the candidate, even if you want to be done with them forever. Circumstances can change quickly, and today's "no" might become a "yes" in the future. This approach also shows your professionalism and leaves a good impression.

Request Feedback

Consider asking the candidate for honest feedback about their decision-making process. This isn't an attempt to change their mind but an opportunity to gain valuable feedback for improving your recruitment process. Keep the conversation casual and non-pressuring to encourage open communication.

Monitor Online Reviews

Your company's online reputation is crucial. Don't forget to regularly check employer review sites for feedback. If you encounter a negative review, address it quickly and professionally. Respond constructively and transparently to demonstrate your commitment to improvement and employee satisfaction.

Phase 4: Moving Forward — Strategic Next Steps

After analyzing what happened, it's time to take action to resolve the issue. This unexpected turn of events doesn't mean your hiring efforts were in vain. Instead, it's an opportunity to leverage what you learned and move forward more strategically.

Revisit Candidate Pipeline

Review your existing talent pool for potential candidates. This can be an efficient way to quickly fill the position with a qualified individual. Consider:

• Silver medalists: Contact candidates who were strong contenders in the original search. They may still be interested and available. Reach out with a personalized message acknowledging their previous strong performance and explaining the new opportunity.
• Past applicants: Reach out to impressive candidates from previous searches who might now be open to new opportunities. Use this to build long-term professional relationships, even if they're not currently looking.
• Internal referrals: Take advantage of your internal network for recommendations. Employees often know qualified individuals who could be a good fit. Consider implementing a referral bonus program to incentivize employees to tap into their networks.

Reopen the Search

If your existing pipeline doesn't yield suitable candidates, then it's time to restart your search. However, use this opportunity to refine your approach:

• Revamp the job description: Update the role description to make it more appealing and accurate. Focus on the role's impact and growth opportunities it offers, not just a list of responsibilities.
• Expand your reach: Explore new channels like job boards or social media platforms. Think about hosting or participating in industry events or job fairs to meet candidates face-to-face. This is especially helpful if you're looking for younger talent, as over 10% of people between ages 18 and 29 visit a job fair at least once a month, according to Statista research.
• Consider a recruiter: If appropriate, work with a professional recruiter for help. They can tap into networks you might not have access to and provide valuable insights into market trends.

Implement Process Improvements

Use insights gained from this experience to enhance your hiring process:

• Streamline your process: Optimize your hiring timeline to move qualified candidates through more efficiently. Consider using AI-powered tools to help screen resumes and schedule interviews.
• Improve communication: Enhance your communication strategy to keep candidates well-informed throughout the process. Set clear expectations about timelines and next steps at each stage.
• Enhance your offer package: Review and upgrade your benefits and compensation package to stay competitive. Maybe offering unique perks aligning with your company culture will draw more like-minded individuals.
• Refine your onboarding: Improve your onboarding process to better integrate new hires and reduce the likelihood of early departures. For example, a mentorship program can help new hires get acclimated more quickly — and it can also provide a set of fresh eyes to established processes.

Turn Hiring Setbacks into Recruitment Success

When a candidate declines a job offer after initially accepting, it can feel like a major setback. However, this challenge presents an opportunity to refine your hiring process, strengthen your employer brand, and ultimately find an even better fit for your team. By responding professionally, analyzing what went wrong, and implementing strategic improvements, you can turn this experience into a catalyst for recruitment success.

A comprehensive employee wellbeing program can make a difference in preventing such situations and improving your overall recruitment strategy. As revealed in Wellhub's Return on Wellbeing report, three out of four HR leaders say their wellness program is very or extremely important to employee retention. By prioritizing employee satisfaction and work-life wellness, you create a workplace culture that attracts top talent and reduces the likelihood of last-minute offer declines. 

Ready to transform your hiring process and create a workplace that candidates can't resist? Wellhub is here to help! Our team of Wellbeing Specialists can help you develop a comprehensive wellbeing program that complements your recruitment efforts. 

You May Also Like

• 9 Diversity Recruitment Strategies for an Inclusive Talent Pipeline
• Time to Hire: What it Is, and How to Optimize It
• What Is a Headhunter: Improve Your Hiring Process

References:

• Gartner. (2023, August 23). Gartner HR Survey Finds Within the Last 12 Months, Half of Candidates Have Accepted a Job Offer – and Then Backed Out Before Starting. Gartner. https://www.gartner.com/en/newsroom/press-releases/2023-08-23---gartner-hr-survey-finds-within-the-last-12-months--
• Navarra, K. (2022, April 11). The real costs of recruitment. Society for Human Resource Management. https://www.shrm.org/topics-tools/news/talent-acquisition/real-costs-recruitment
• Statista. (2022). Visitors of job fairs/recruitment fairs in the U.S. by age 2018. Statista. https://www.statista.com/statistics/227493/job-fair-recruitment-fair-visitors-usa/
• Statista. (2023). Recruitment: challenges facing companies 2023. Statista. https://www.statista.com/statistics/1445274/recruitment-challenges-facing-companies/
• Turner, J. (2022, October 4). What Will HR Focus on in 2023? Gartner. https://www.gartner.com/en/articles/what-will-hr-focus-on-in-2023
• Wei, Z. (2022). Impact of Organizational Brand-Building Strategies on Organizational Brand Equity: a Moderating Role of Brand-Oriented Leadership. Frontiers in Psychology, 13(1). https://doi.org/10.3389/fpsyg.2022.919054
• Wellhub. (2023). Wellhub Return on Wellbeing Study. Wellhub. https://wellhub.com/en-us/resources/research/return-on-wellbeing-study-2023/