Reasons Employer Can Withdraw a Job Offer

By hrlineup | 16.07.2020

Hundreds of applications are perused when a position is available in a company. Recruiters narrow these applications down to just a handful of the applicants through the interview process. In the end, one individual is chosen to fill the position and given an offer letter. With this offer letter, they have the option to take up the available position and begin working for the company.

Despite going through all these processes, recruiters sometimes find that the individual chosen as the perfect fit may not meet all the necessary criteria. When this occurs, the recruiter may choose to withdraw a job offer and seek another candidate.

Why is a job offer withdrawn?

Withdrawing an offer of employment letter may occur for various reasons including: –

  • Background checks – When candidates fail a background check, such as a criminal background or drug test, their job offer is normally automatically withdrawn.
  • Downsizing – Change always occurs in companies, and unforeseen circumstances could lead to a company choosing to downsize. This means that rather than offer positions, the companies will be cutting down on their existing employees.
  • Overspending – This occurs when a recruiter exceeds their hiring budget, and then have to make cuts to accommodate their new hires.
  • Bias in hiring – Bias could include instances of nepotism or accepting to hire individuals who did not conduct themselves well during the interview process.
  • Unconfirmed references – When a reference check is not done before the offer letter is given, or when a bad reference with negative insight on the character of the candidate.
  • Candidate Behaviour – There is often a short period between the job offer being given and the candidate starting the job. If the candidate behaves in a way that does not represent the company well during this time, then their offer may be withdrawn.
  • Changing goalposts – Once the offer has been given and signed, the job applicant should not attempt to negotiate for an increase in salary and attach another offer for comparison.

The offer withdrawal is officially done with a job offer withdrawal letter. This type of letter needs to be short and straight to the point while including all the information the applicant needs. As a letter of regret, it should capture the name of the company and the job position. Following this, the reason that the offer withdrawal is happening should also be stated. It should also communicate that the hiring company is not bound to offer any compensation, particularly of the offer letter had not yet been signed and shared. The last portion of the letter should contain contact information for the HR team if the applicant has any questions that need resolution.

Offer withdrawal should only be applied as a last resort for a recruiter, as the time and cost of the hiring process can be quite high. Furthermore, as digital, and online platforms continue to expand, recruiters need to particularly careful about how they interact with all staff, both existing and potential.

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