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Episode 44: From Unemployed to Underemployed: How to Cope With It with Jennifer Duggan
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The Flip Flop Job: What to Do When a Job Offer Is Rescinded

We thought everyone knew no take-backsies! What to do when your job offer is withdrawn after a long job search.

You got the job (!!!) right up until your job offer was rescinded. 
What the 401k is up with that? 
Job offers are the pot of gold at the end of a long job search process. When you get the call or email that says, "We choose you!" your body releases a waterfall of joyous epinephrine. You did it! 
Fast forward a few days later, and you receive another email. The tone of this email is different. As you read, those big rejection words pop right out
  • Regret 
  • Inform
  • Job
  • Offer
  • Rescinded
What happened? What can you do now? How can you protect yourself from this happening again? 
Today, we're diving into the ugliest trend in hiring as of late: the job offer rescindment. Here's why they happen, what you can do about it, and the email response you should send to politely say, "hate you, mean it" to a hiring manager. 

Is It Legal to Rescind a Job Offer?

Technically speaking, maybe. 
I know you love to hear that! There are a few circumstances in which an applicant can take legal action against a company that offered and rescinded a job. 
The truth is that many companies, especially larger giants, are lawyered up the wazoo. When they pull crazy stunts like a job offer rescindment, their lawyers are often poised to bleed your financial well dry. 
While we always think it's worth looking into, especially if you've incurred huge expenses in relocating for a job, proceed with caution. 
Here are some circumstances where employees can take legal action include:
  • Relocation job offer 
  • Breach of contract violations (e.g., verbal offers, written offers)
  • Discrimination 
  • Theory of promissory estoppel (when a clear and definite promise was made, causing the candidate to incur lost wages and/or financial damages) 
  • Fraudulent representation (when a company makes an offer with full knowledge that the offer was either false or deeply unreliable) 

More Resources:

Why Your Written Job Offer Was Rescinded 

Before we go into the circumstances behind job offer withdrawals, let's go over the well-known etiquette of interviewing and job offers. 
Hiring managers and recruiters should never offer a job—whether officially or unofficially—until all due diligence is done. That includes sign-off from all decision-makers, CEOs, and team members who have input on the hire. That also includes calling references, getting salary approval, and passing any drug tests or criminal background tests. 
Pro Tip:  When entering an interview process, it's best to get clarity around what it entails. Will there be multiple rounds of interviews? Should you notify your references just in case? Will there be multiple decision-makers? What is the timeline for making the hire?
Know all elements by the end of your first interview. In this case, you'll know when you can expect an official job offer.
While we will go over circumstances in which an offer was rescinded because of something "you did," take that with a grain of salt. Ultimately, it is the hiring manager's job to process professionally and accurately. 

1. They Found Someone "Better"

In many cases, the hiring manager or recruiter wouldn't disclose this, but it happens. In the case that another candidate declined, then changed their mind, your offer could be rescinded. 
In my opinion, this is a bad move on their part, and you're better off elsewhere. Just like in dating, nobody wants to be the second choice. 

2. You Failed to Pass Your Background check

Again, any applicant who needs to undergo a background check should not receive a job offer until the check is complete. 
If the job requires a background check, the job offer is contingent upon the results. While it can feel like a double injury, the hiring manager should have known not to extend an offer. 
Don't feel too bad about it, but make sure to do your own ad-hoc background check before applying for your next job. If you have a criminal history, you are not obliged to disclose it, but you can share the lessons learned if you know it will be flagged in a background check.
If a company is going to do a credit check as part of a background check, you can (but do not have to!) disclose details about your cumbersome student loans and how you're working to rebuild your credit. 

3. Negotiations Fell Through 

You negotiated your worth, and you did not back down. We couldn't be more proud of you. However, somewhere between your interviewer's desk and the human resources office, the initial offer was deemed unacceptable. 
If this is the reason that your job offer has reversed, you might still have negotiation power if you want it. This is a big if. 
If you really want this job and your high salary number is preventing it, you may still negotiate elements of your employment status. 
What to Negotiate:
  • A time-based review (e.g., 3 months, 6 months) 
  • A signing bonus or other bonuses you can earn
  • A bonus structure related to new clients
  • More PTO
  • Enhanced health benefits
  • Learning stipends 

4. Plain Old Discrimination 

Discrimination is alive and well in the hiring process, so watch out. 
There are a number of biases that lurk in the shadows of every interview. If you were able to make it past confirmation bias with one hiring manager, you might find that the CEO has their own idea of who you are and what kind of worker it makes you. 
Beyond that, discrimination comes in all shapes and sizes, particularly when someone is entering the labor market. Aside from discrimination for race, creed, and gender, some common victims of discrimination in the hiring process include:
  • Discrimination based on pregnancy or parenthood
  • Discrimination based on perceived gender 
  • Discrimination based on age
  • Discrimination based on perceived physical ability or ableism
So what do you do when your interview process was going wonderfully? What happens when the hiring manager tells you that you have the job and then you let it slip that you're three months pregnant? 
If you suspect your job offer is rescinded or that your interview shirts a halt due to discriminatory factors, you do have legal recourse. It's a tough road, but there are resources to help
Pro Tip: If you don't want to take legal action, write the best Glassdoor review of your life. 

5. A New Hiring Freeze 

You're hired, and you even received the paperwork! As you're basking in the post-resignation letter two-week vacation between your old job and your new job, you get the call or the email. Your acceptance has been rescinded.
"Sorry," they say, "We've entered a hiring freeze.
This is the story we hear most of all. A big layoff or a hiring freeze is a great way to sweep out employees, reduce overhead costs, and have a blanket excuse. 
If this is why your job offer was rescinded, it's probably for the best. Either the company is not expected to survive a tough economic forecast, or they are flakey jerks. 
Either way, while it's a tough blow, it's easier to restart your job search right now. In other circumstances, you might be onboarded, learn nothing, and find yourself laid off in three months along with hundreds of other folks. 
While I do hate the saying, "everything happens for a reason," I do think that "It wasn't meant to be" is incredibly accurate in these scenarios. 
What I mean is this: YOUR job is still out there. This one wasn't it. 

How to Prevent a Job Offer Flip Flop 

So, what can job applicants do to prevent this type of thing from happening?
Well, it's doing your due diligence the entire way. I'm considering tattooing "The Interview Process Is For You, Too" on my forehead because it's so important to remember.
While interviewing for jobs is nerve-wracking at best and soul-crushing at its worst, it's for you to make decisions too. 
That's why we always encourage any job seeker to watch out for red flags in an interview process. We urge you to ask all the questions you would want to know. We ask you to outline what you hated about previous jobs—and to make sure that you won't deal with those pains again. 
Here's the checklist to protect yourself from the dreaded offer flip flop. 
  • Research the company thoroughly before interviewing. 
  • Search the company through the "news" tab in your favorite search engine. Does the business look good for them? Have they survived an economic downturn? Can they do it again?
Pro Tip: If you find any red flags about past layoffs, ask about them in the interview. 
  • Scour Glassdoor for reviews. Read all of them closely and look for common behaviors. Know that many companies ask current employees to write good reviews in order to cover bad reviews. Read it all. 
  • Know what the interview process should look like before going all in. 
  • Do not quit your current job until you have a countersigned written offer. 
  • Do not "end" your job search until your receive your first paycheck. 
Pro Tip: Always keep an eye on the job market, especially as it relates to your skills. 

How to Respond to a Rescinded Job Offer: The Email Template

When you receive an email or call that notifies you of your offer withdrawal, you might want to release an arsenal of four-letter words. 
Release those in private, then get back to your professional self—and write a cutting email to express your displeasure and disappointment. Even though you wouldn't want to work at this company, it's always good to keep an employment relationship open.
It's very possible (and likely) that the hiring manager has no recourse—and that they are just as disappointed as you are. Don't harm that relationship if you don't need to. 

Job Offer Flip Flop Email Template

Dear [NAME],

Thank you for the email about the change of heart. 

I’m disappointed to hear that I was not selected for the [JOB TITLE] position, especially after the position was promised to me in an official job offer letter. As you can imagine, I have passed on other opportunities to pursue a future with [COMPANY]. 

While I did enjoy learning more about [COMPANY] and meeting with [PERSON/PEOPLE], I agree that I would not be a great fit here. I would prefer to seek employment at a company that respects its employees, their time, and their efforts. 

If you have a moment to spare, I would be interested to hear specific reasons for the rescindment of my job offer, especially after it was enthusiastically promised to me.

Thank you again for your time [HIRING MANAGER]. I wish you and the rest of the team at [COMPANY] all the best moving forward.

Sincerely,
[NAME]

Our Favorite Job Search Resources

If your job offer was rescinded, you're still going to be okay. I promise! Here are some of our favorite job search resources to help you re-motivate and get the job that really suits you. 

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