What to do if a Job Offer is Withdrawn

Applying for jobs is stressful, and when job seekers hear, "We’re pleased to offer you a position with us,” all the worry seems to subside. But what happens if a prospective employer offers you a job and rescinds the offer before the start date?

Withdrawn job offers are a topic that we hear very little about. But if a new employer decides to change their mind, knowing how to respond can make a tremendous difference in a job outlook going forward.

Why Companies Rescind Job Offers

After being offered a job, you may think it’s (understandably) rude and unfair for hiring managers to rescind the offer altogether. Amid a slowdown in industries, some firms have begun scaling back their recruitment, either through hiring freezes or layoffs. 

Last month, Amazon announced layoffs of mostly corporate employees, trimming 18,000 workers, the biggest reduction despite its 1.5 million-strong workforce. Slightly smaller raw numbers popped up at Google, with 12,000 layoffs, and Microsoft, with 10,000. 

Typically, companies can withdraw an offer if a candidate fails a background or reference check. There might also be a rare case in which a candidate makes a wrong move right at the final hurdle, leading to a change of heart. Today, however, there is a broader economic context driving this trend.

Other plausible reasons for a withdrawn offer include budget changes, second thoughts, poor negotiation, or another candidate. 

BBC reported US data from Glassdoor, which showed a surge in posts mentioning the rescinding of job offers: a 217% increase between January and July 2022. 

“Many companies that staffed up quickly are having to reduce size very quickly,” Charley Cooper, chief communications officer at enterprise technology provider and blockchain software company R3, said in the press release. “That turns into layoffs, hiring freezes, and, in the most extreme cases, rescinded offers.”

Research the Company

Generally, candidates research and become familiar with a company before an interview. You learn the skills and experiences that the company values, key players of the organization, news and recent events, and the company’s culture, mission, goals, clients, products, and services.

But to avoid any possibility of a rescinded job offer, you should also research financial stability. Is the company financially secure, or is it struggling? Did the company recently announce budget cuts and downsizing? 

Any negative reviews on job sites, including LinkedIn and Glassdoor, are telltale signs. Individuals will sometimes even leave a review if a company offered them a job that was withdrawn. 

These issues won’t always be publicized, and researching the company can’t guarantee a job withdrawal won’t occur. However, learning these red flags can prevent you from making a later regretted decision.

Ask the Right Questions

You can protect yourself from being blindsided by a rescinded job offer by asking incisive questions about prospective employers’ hiring practices and negotiating certain protections in employment contracts. 

For example, you can and should ask potential employers about the company's health, future growth plans, how many people are currently in the department, how long they have been in this department, if they are hiring more people, and for what positions, etc. 

Trickier questions, such as, ‘What happens if I relocate and the job isn’t available anymore?’ are questions that you should also ask. 

“Many people think once they have an offer in writing, sign and return it; it’s a contract. But really, it’s a contract for employment at will, which can be terminated at any time,” Mimi Moore, a partner in the labor and employment group at Bryan Cave LLP, said in a press release. 

“Candidates are not employees until they go to work. Even at that point, they’re employees at will. After the first day of work, either party can end the relationship. Individuals don’t have a right to a position,” Moore continued. 

Additionally, if you find yourself on the receiving end of a rescindment, you should inquire about the reason. If the withdrawal is due to the company restructuring or eliminating a position, you should ask about other opportunities for which you might be a fit.

Follow up with the company by email near the end of any waiting period. You then must decide whether to continue checking back or move on. On the other hand, if a company rescinds a job offer due to your actions, this feedback can help prevent you from repeating the same mistakes as you continue the job search.

Get Everything in Writing

A written employment contract is a document that a candidate and employee sign setting forth the terms and conditions of employment. Candidates should always get an employment agreement in writing because verbal offers don’t suffice. You must ensure that you’re protected. 

Therefore, you should negotiate signing bonuses and relocation costs if you believe the offer is at a high risk of being rescinded. 

Notably, you may also have a legal claim against a company that rescinded your job offer. But going through with this depends on many factors. 

While an employer can withdraw a job offer at will, they can't do so for reasons related to race, age, gender, religion, or national origin. If you feel that the company withdrew your job offer based on these discriminatory factors, you should seek legal help.

Go Back to Your Old Job

Before applying and accepting a position, most people put in a two-week notice at their current job. But if a prospective company rescinds a job offer after doing so, candidates should ask if it’s not too late to keep their old job. 

The company may have already put out feelers to fill the position and might not be open to the request, but it’s worth a try to buy some time, especially if you have a good relationship with your employer. There might be a chance to stay in your position or get rehired. Some employers would be thrilled to have the opportunity to keep a valued employee.

Turn to Professional Network Support

If you are unfortunate enough to experience an offer withdrawal and have exhausted all options with your previous employer, you should turn to your solid professional network, such as LinkedIn, to reenter the workforce.

And if you have a mentor at your current company or in your industry, ask for guidance, advice, and assistance. If you’re working with a recruiting agency, request that they boost their efforts to help you find a new position quickly.

Overall, job seekers must remember that an offer isn’t official until it’s signed, and until then, they should keep their search efforts moving forward.