A New Reality: Rescinded Job Offers

Despite the “Chicken Little” headlines, the current job market remains the hottest it’s ever been, with more open roles than candidates. However, there are some sectors that are already being hit by economic factors beyond anyone’s control. B2B tech is one such industry, and this is having an impact on hiring. While hiring freezes and layoffs are common responses to high rates of inflation and economic uncertainty, this time around we are seeing the very uncommon practice of hiring companies rescinding offers. Although this is by no means a pervasive practice, going from virtually zero to even a fairly small amount of rescinded offers feels like a huge shift. And of course, it is the rescinded offers that are getting the most attention both in the mainstream media and on LinkedIn.

Startups, ad-tech companies, and pre-IPO organizations are among those hiring companies that are a bit less stable right now. And, from my research, it seems as though most of these rescinded job offers are ones that were extended to new graduates months ago. I have heard the all-too-familiar story of the recent grad relocating to a new state, only to find out that the job they moved there for no longer exists. These revocations come in a few forms—from an outright recission of a job offer to a “delayed” start date, with no specific date noted. 

While companies should not rescind job offers—it’s grossly unfair to candidates and it reflects poorly on the company—there is nothing that you, as a candidate, can do to prevent it. So you need to prepare yourself for this possibility, however unlikely. Here are some suggestions for protecting yourself against this awful, brand-destroying practice:

Look at how the company is backed. Is the company backed with private equity funding? Is it a publicly traded company? Is it a privately held corporation? Understand where and from what sources the money is coming. 

Keep other options open. Continue interviewing and promoting yourself to other companies, at least until you have received your company laptop and are steeped in their onboarding process. 

Never stop looking. Even after you have joined a new company, you must continue to look and to keep your options open. You need to know what your market worth is, and what opportunities there are beyond your current employer. Most job offers are contracts of at-will employment, which means that the employer or employee can sever the relationship at any time for a myriad of reasons, or for no reason at all.

Tap your network. There has been a raft of “call-out” posts on LinkedIn lately, where a candidate whose offer was pulled has described what happened and called out the company. Yes, the companies that engage in this practice deserve to be called out on their unprofessional behavior but choose this option at your own risk. It is far better that you share your experience privately and get your network working for you. 

You are a superstar. You know this because you already received an offer, one that you were jazzed about. Tap into that energy and keep looking for the right role for you!