The Companies Rescinding Job Offers

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Landing a new job is one of the most exciting aspects of many people’s professional lives. A new job represents new opportunities, the ability to meet new people and learn new skills, and oftentimes more prestige and compensation than a previous role, which is a key driver for people looking for a new job in the first place.

When Job Offers Are Snatched Away

Imagine, then, the heartbreak and emotional 180-degree shift that comes when a job offer is rescinded. Not only do rescinded offers mean all the expected positives are gone, but they also mean employees may find themselves in a precarious employment situation if they already gave notice to their current employer.

“Amid a slowdown in industries such as tech, some firms have begun scaling back their recruitment, either through hiring freezes or layoffs,” writes Alex Christian in an article for BBC Worklife. “Accounts proliferate of workers who thought they had their new role secured, only to have it withdrawn at a late stage.” He adds that some employees have found themselves in the worst-case scenario situation of having given notice at a job and then finding out their offer from another employer has been snatched away. 

Rescinding Offers on the Rise

At-will employment is the predominate model in the United States, meaning both employees and the employer are typically permitted to terminate the employment relationship at any time for virtually any reason that isn’t explicitly prohibited (such as various forms of discrimination or retribution for reporting workplace offenses). Still, just because employers have long had the ability to terminate workers with zero notice doesn’t mean the practice has been common. Recent market conditions, however, have demonstrated an uptick in that practice.

Certain industries may have a greater risk of rescinding job offers than others. “One factor has been the crypto and tech slowdown,” adds Christian. “Growth companies, which had been operating at full tilt for the past two years, have had to abruptly slam on their hiring brakes over fears of a looming recession.”

A new job is an exciting prospect, but candidates should be wary of companies that seem to lack stability or be in volatile industries, as recent evidence suggests that the number of companies rescinding job offers may be on the rise.

Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.

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