Industry Trends

Why Rescinded Job Offers Could Be a Boon for Small Businesses

Jul 07, 2022 • 3 min read
rescinded job offers small business impact
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      Rescinded job offers. For anyone who has ever counted down the minutes to payday, this is the stuff of nightmares. 

      Still, this nightmare scenario is what a small number of job candidates have reported recently, noting that job offers made weeks and months earlier are being pulled — almost always after candidates submit notice to their current employer, and in some instances on the candidate’s  start date. While most of the press focuses on offers in the tech industry, the Wall Street Journal notes that rescinded offers are being reported in insurance, marketing, recruiting, and other fields, too.

      Source: CNBC, June 23, 2022

      Why are offers being rescinded by employers? Reasons vary. For example, it’s believed that Twitter’s recently rescinded jobs offers are linked to the stalled takeover of the company by Elon Musk. Other companies, like Redfin, point to the economy. Crypto company Coinbase, which has both rescinded certain job offers and laid off ~18% of its team, cite overhiring and fluctuating conditions specifically in the crypto market.

      What This Means for Small Businesses

      Ready for a silver lining? Some small businesses could actually benefit as their larger counterparts struggle with hiring. Here’s how:

      1. Enticing top talent may become easier. As bigger businesses scale back on hiring, smaller employers that have struggled to find talent during the past year may finally start seeing a rise in qualified applicants.
      2. Meteoric rises in employee pay could taper off. While it’s unlikely that small businesses will be able to turn back increases in starting salaries that have surfaced recently, as job markets slow, pay increases may also stop inching up.
      3. Independent contractors may experience higher demand. Even businesses rescinding job offers still have skill gaps to fill. If your business outsources services, you could be in luck: this could lead to even greater opportunities small businesses, including freelancers and other independent contractors.

      Of course, every silver lining needs a cloud or two: 

      1. End of the 2-week notice? In most reports of rescinded offers, new-hires were caught off guard: their job offers were rescinded shortly before starting — or sometimes on their scheduled start date! – and almost always after the newly-hired candidate had resigned from their old job. The backlash has the potential to usher in the death of the 2-week notice. In order to protect their income, even more employees could opt to ghost their former employer – a trend that’s unfortunately been on the rise since the start of the pandemic.
      2. Glassdoor reviews will likely tell-all. Word gets around and websites that allow for job candidate feedback, like Glassdoor, could play an even bigger role in helping candidates decide whether or not to sign on the dotted line. Employer reputation is still as important as ever.
      About the author
      Jeanie Croasmun

      Jeanie Croasmun is a writer, editor, and all-around news junkie who voluntarily (and gleefully!) listens to economics podcasts while she runs. She writes on current issues and other topics related to small business finance for Lendio.

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