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https://www.wsj.com/articles/more-companies-start-to-rescind-job-offers-11655865283


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 * Management
 * Managing Your Career


MORE COMPANIES START TO RESCIND JOB OFFERS


THE LABOR MARKET REMAINS HOT. YET BUSINESSES IN A RANGE OF INDUSTRIES ARE
PULLING BACK JOB OFFERS TO RECRUITS THEY WERE COURTING JUST A SHORT TIME AGO.

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FRANCO SALINAS LEARNED THIS MONTH THAT A DATA-ANALYST POSITION HE PLANNED TO
START IN JULY HAD BEEN AXED.

Photo: Caroline Yang for The Wall Street Journal
By
Katherine Bindley and
Angela Yang
June 22, 2022 5:30 am ET

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Businesses in several different industries are rescinding job offers they made
just a few months ago, in a sign the tightest labor market in decades may be
showing cracks.

Companies including Twitter Inc. , real-estate brokerage Redfin Corp. , and
cryptocurrency exchange Coinbase Global Inc. have rescinded offers in recent
weeks. Employers in other pockets of the economy are pulling away offers too,
including some in insurance, retail marketing, consulting and recruiting
services.

Your browser does not support the audio tag.
Your Money Briefing
Why Companies Are Rescinding Job Offers
Even though the labor market remains hot, some companies are rescinding job
offers after candidates have signed on the dotted line. Host J.R. Whalen is
joined by reporter Angela Yang, who spoke with several people whose job offers
were pulled back.Read Transcript
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At the same time, many companies have signaled a more cautious hiring approach.
Netflix Inc. , Peloton Interactive Inc. , Carvana Co. and others announced
layoffs. Technology giants such as Facebook parent Meta Platforms Inc. and Uber
Technologies warned they will dial back hiring plans. 

The labor market remains strong overall, with an unemployment rate at 3.6%, near
the half-century low it reached in early 2020. 



But these signs of caution in hiring show that executives are finding it tougher
to predict the next 12 months in the economy, say hiring managers and
recruiters. When a company revokes a job offer, it indicates a company’s
business outlook has changed so quickly it has to undo hiring plans made
sometimes weeks before.

“I just couldn’t believe what I was hearing—like it’s a job I had had lined up
for months and I really was counting on it,” said Franco Salinas, 24 years old,
who learned this month that a data-analyst position he planned to start in July
had been axed. “This just made me realize how fragile things are.”

SHARE YOUR THOUGHTS

Have you or someone you know had a job offer rescinded? Join the conversation
below.

Some recruiters caution that there hasn’t been a large wave of job offers
canceled. At the same time, employers still can’t find enough workers for many
types of jobs.

Yet, “going from zero to a fairly small amount seems like a big increase,” said
Brian Kropp, vice president of human-resources research for advisory firm
Gartner.

He said having a job offer rescinded was almost unheard of six months ago. “If
we’ve learned anything from the last couple of years, it’s that things can
change quickly,” he said. 

Mr. Salinas is one of many recent college graduates who locked in a job while he
wrapped his studies. Information-technology consulting firm Turnberry Solutions
in October offered him a data-analyst job based in Minneapolis. An international
student from Peru, he said he had passed on other offers to accept Turnberry’s.
Having landed the employer-sponsored visa required to remain in the country, he
felt secure in signing a lease and making other plans.

The firm called to rescind the offer this month. A Turnberry spokeswoman
confirmed two offers for data analysts had been rescinded, though the company
says it is still hiring for other skill sets. 

RALEIGH BURKE ACCEPTED A NEW POSITION AT AN INSURANCE BROKERAGE IN LOS ANGELES,
GAVE NOTICE AT HER OLD JOB AND THEN HER OFFER WAS RESCINDED.

Photo: Raleigh Burke

“We do not take the decision to rescind offers lightly,” the spokeswoman said,
adding that the firm had paid the two consultants two months’ rent to help
compensate. “We periodically need to adjust the skills we bring in given changes
in demand from our clients.” 

Other companies attribute canceled job offers to the knock-on effects of a
tech-industry slowdown—including the firm that made Jenna Radwan an offer in
May. It rescinded the offer two weeks before her June start date.

Hirect, a chat-based app focused on tech recruiting, had wowed the 21-year-old
with a starting salary of $80,000, plus the promise of a minimum uncapped
commission of $195,000 and the flexibility to set her own schedule. Ms. Radwan
felt confident enough to turn down three other jobs and withdraw from three
additional interview processes, she said. 

“They gave me a strict deadline, so I was like, ‘I’m just going to go ahead and
take this and go with my gut,’” she said. 

As she prepped to start, the recruiter sent her an email: Hirect was pulling the
offer and freezing hiring because of drastic and unforeseen changes in market
conditions. 

 “We haven’t been immune to these recent challenges, nor the considerable
belt-tightening going on throughout our industry,” a Hirect spokesman said of a
recent slump in tech hiring that led the company to rescind two job offers.

Ms. Radwan is proceeding more carefully in her renewed hunt for a marketing,
sales or account-management job. She plans to complete every hiring process
before accepting any offer, even if it means asking for more time to decide, she
said.

“I didn’t even know that this type of thing could even happen,” she said.

Other jilted job seekers say they are tackling their new searches differently,
too. Raleigh Burke accepted a claims-analyst job at a Los Angeles-based
insurance brokerage in May, gave notice at her old job the same day, then jetted
to Hawaii for some rest. By the time she got home, her offer had evaporated
without an explanation. She was surprised, she said, because she had been told
she was the top candidate.

STEVEN POPE WAS TOLD THAT HIS JOB OFFER AT A RETAIL MARKETING FIRM WAS RESCINDED
BECAUSE AN EXPECTED ROUND OF FUNDING HAD BEEN DELAYED.

Photo: Steven Pope

Ms. Burke, 35, had turned down an offer with another company to accept this one.
“So what do I do, go with my tail between my legs and crawling back?” she said.
Next time she pursues a job switch, she said she might not resign until she
receives a laptop from the new company or starts its onboarding process.

For now, many hiring managers say signing up new recruits remains highly
competitive. A Gartner survey of more than 350 HR executives conducted at the
end of May found around 50% thought the competition for talent would increase
over the next six months. Nearly two-thirds said they hadn’t made any changes to
their hiring practices or HR budgets in response to economic volatility. 

While startups, companies in the ad-tech industry, and those that are pre-IPO
might be less stable right now, it’s still a job candidate’s market, said Keith
Feinberg, senior vice president with professional staffing firm Robert Half.
Still, he said he wouldn’t be surprised if job seekers evaluate some
opportunities more cautiously than a few months ago. 

Can the U.S. Keep Creating Jobs?
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Can the U.S. Keep Creating Jobs?Play video: Can the U.S. Keep Creating Jobs?

Amid a record hiring streak in the U.S., economists are watching for signs of a
possible wave turn. WSJ’s Anna Hirtenstein looks at how rising interest rates
over high inflation, market selloffs and recession risks challenge the growth of
America’s workforce. Photo: Olivier Douliery/AFP

Steven Pope, 32, was supposed to start a new job as a director of data for a
retail marketing firm after Memorial Day weekend. Instead, he’s job hunting
again after his start date was put on hold indefinitely. The company told him an
expected round of funding had been delayed, he said.  

Mr. Pope is now taking as many interviews as he can get, he said. He’s also
rethinking the types of opportunities he’s willing to consider.

“I’m looking at how are these companies backed up or paid,” he says, adding that
his friends in tech are starting to prioritize differently in their own
searches. “I see there’s a little bit of a shift already where security is going
to come before comp.”

Write to Katherine Bindley at katie.bindley@wsj.com and Angela Yang at
angela.yang@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved.
87990cbe856818d5eddac44c7b1cdeb8



Appeared in the June 23, 2022, print edition as 'When You Accept a Job—And the
Offer Is Rescinded.'




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