Be engaging while offering value to your applicants...How to Prevent Candidates from backing out!!

so you’ve made an offer to an employee and he’s agreed to join your company. You proceed to call him on his joining date and there’s no answer! You try reaching out to him via call or mails but you still can’t connect with him. A few days later, you check his LinkedIn profile and find out that he’s working for another organization.

Does this sound situation familiar to you? Candidates backing out are a true nuisance for recruiters and employers alike. It adds to the workload of the HR department, and also contributes to higher hiring costs for the employer. Moreover, the position that needs to be filled remains vacant adding further business and revenue loss.

Some of the consequences of candidates backing out are:

1. Immediate on business and revenue loss
2. Lead to client dissatisfaction  
3. The hiring process has to be restarted
4. Time spent on waiting for the candidate to join is wasted
5. Delay in timeline of organisation’s goals
6. Costs of hiring shoots up
7. Demotivates recruiters etc.

So what’s the best way to stop candidates from backing out? Is there a way to avoid candidates that have these tendencies altogether? To answer these questions it’s important to understand the possible reasons why candidates back out in the first place.

Why do candidates back out from an offer?

1. Due to wrong hiring process
2. Untrained Interviewers ( One of the major reasons in current scenario)
3. The current company convinced them to stay
4. They get counter/better offer in another company
5. They developed cold feet and aren’t ready for the change
6. They rethought their position on the job role
7. A personal emergency disables them from joining the company

Almost every time a candidate backs out you’ll find that one of the above reasons is valid. Dealing with these possibilities efficiently and in a timely manner can help avoid the seemingly inevitable event. Some steps can be taken to avoid these possibilities from happening while certain things should be done as good practice after the fact. Let’s take a deeper look at each of the stated reasons and how we can effectively tackle it.

1) Company convinced them to stay

Candidates when submitting their resume might be convinced to stay with their current company. Usually the company might agree to some demands of the employee which cancels out their need for a different opportunity.

The best approach in this situation is to understand the candidates need for a job change. If the candidate is leaving for reasons related to designation or better pay then it’s easier for his current organisation to retain him. On the other hand, work culture and location are harder for organisations to change. It’s best to connect with the candidate as soon as he’s submitted his resignation. Having a conversation immediately after the candidate as put in his/her papers will give you a better idea of the situation.

2) They’ve got a better offer from another company

This is probably the most common reason for a candidate to dishonour his/her joining date. As a recruiter or an employer, you must accept that candidates will look at other offers while they wait for their joining date. When we speak about a better offer they could mean a couple of things:

1. Better pay
2. Better working conditions (office, location, amenities)
3. A more reputed brand
4. Better role

We could add a couple of more points to what qualifies as a better offer. However, you can tell by now that there isn’t much scope to tackle these points in the short run. In a situation like this the best you can do is to find out earlier than later. Hence, staying in touch constantly with the candidate is a must. Another approach to keep people from joining another company is to make the candidate feel wanted. Candidates are more likely to join a company where they feel important and this also creates a positive environment.

3) They’ve developed cold feet

Change is difficult and for some candidates the fear of what lies ahead in their new role, may cause them to change their minds. If a candidate accepts a job offer but then changes his mind, it is mainly due to the uncertainty of his new role. In such scenarios, a little reassurance might be able to turn the tide in your favour. Reiterating the benefits and the security of the job and also promising growth (if possible) might be able to get the candidate to rethink his/her decision.

4) They rethought their position on the job role

While job hunting, candidates may have accepted roles that they’re not entirely happy with. When the joining date draws closer, it’s possible that the new job may not be as attractive to them as they initially thought.

Such scenarios can be contained through an effective interview process. It’s important to gauge the willingness and excitement the candidate has towards the role. If a candidate isn’t convinced about his role, drop-out rates are always going to be higher. What could be worse is that the candidate might choose to leave within a couple of days of joining. Asking the right questions at the interview stage can help you avoid drop-offs and help you avoid hiring poorly motivated employees.

5) A personal emergency prevents them from joining

Probably the least likely of all probable reasons, a personal emergency really leaves you with very few options. The best approach in the scenario is to be supportive and see if you could extend the joining date by a couple of days.

Personal emergencies are often used as an excuse by candidates who do not wish to join your organisation for reasons they don’t want to disclose. Since there may not be a fool proof way of determining the honesty of the candidate, it’s best to be a little conservative when extending supportive courtesies towards the candidate.

How to deal with employees backing out in SMEs and Startups?

Keeping candidates interested for Small/mid-size organisation might be a bigger challenge given how speculative people are about job security. Here’s a couple of tips that can help you hang on to a quality candidate.

1) Sell the vision

Candidates must buy into the vision of the company and it’s up to you to help them do so when you communicate with them. Speak about the goals and future plans of the company and what part you expect the candidate to play in it. Ensure that the candidate’s goals are aligned with the company’s goals. If the candidate is excited about his/her role in shaping the vision of the company, you’ll rarely find him/her backing out.

2) Hire potential over polished talent

The best talent in the job market are also sought by large companies who can offer a lot more in terms of job security, employer brand and salaries. Unless, you’re willing to remunerate employees with more than competitive salaries, it’s best to hire potential over polished talent.

You can look at hiring based on who you expect the employee to become 3 months or a year down the line. If a candidate has all the necessary skills required to be the perfect employee for his/her position a couple of months later, it’s not a bad choice to welcome them on board.

3) Not everyone wants to work in large corporates

While majority of candidates that you’ll come across will want to work in a low pressure, stable corporate job, there are a handful of employees there who love the idea of a Startup or SME. These employees prefer to work in an environment where they can be a part of a growth story. Seeking these employees will leave you with a lesser chance of a lost hire.

4) Notice period buyouts and negotiations

If you can afford to buy out a candidates notice period, it’s not a bad option since it will compel them to join your company. This would immediately reduce the chances of them backing out. If a buyout isn’t possible, you can always help the candidate negotiate with his/her current employer to shorten the notice period. Reducing the amount of time taken by an employee to join you post an interview, will help you avoid drop off rates.