Majority of Gen Z Candidates Would Renege on an Offer if a ‘Better’ One Came Along

Reneges have been the hot topic of conversation. Your peers are swapping stories of how candidates who appeared excited are suddenly backing out of offer letters before their start dates at rapid rates, and your company is asking you how they can ensure your hires don't do the same. But what does the landscape of reneges truly look like? And how do Gen Z candidates today feel about rescinding offers?

In March 2022, we surveyed nearly 5,000 college juniors and seniors to uncover the truth about what Gen Z is experiencing in the workforce. As part of the robust report of our findings, “The State of the Gen Z Job Search,” we included data on the current state of reneges and why they occur.

Read on for some high-level takeaways to better understand early career talent, and download the full report for more data and analysis.

While only one in five candidates actually reneged on an offer, a majority said they would rescind an offer in theory.

When we asked students if they reneged on an offer prior to the one they currently hold, only 20% of candidates said that they had. However, when we questioned the same group about whether they would rescind an offer if a better one came along, a majority admitted that they would back out. Specifically, 62% of internship candidates said they would rescind an offer, as well as an even larger share of entry-level job seekers at 72.9%. Acknowledging that Gen Z has a liberal attitude toward reneges, you should make extra efforts to engage with accepted candidates before their start dates, such as by emailing them company updates, and inviting them to meet their future team.

Career fit was the top reason candidates have, or would renege.

It’s clear that Gen Z would in theory renege an offer if a better one came along, but what exactly would make one role or company superior to another in their eyes?

We discovered that when it comes to reneging, the top reason that both internship and full-time candidates would rescind an offer would be if another position better aligned with their career goals. In fact, 85.3% of internship candidates agreed career fit would sway them, as well as 77.7% of full-time candidates. Interestingly, career fit beat a higher compensation as a reason to renege, with 55.3% of internship candidates and 73.6% of full-time job candidates agreeing that if another opportunity has a higher pay they would rescind their current offer. With this in mind, make sure you discuss career alignment with candidates during their interviews.

Women are more likely than men to renege over work-life balance policies and company culture. 

We also found that almost half of internship candidates (47.9%) and a little more than half of full-time candidates (58.5%) said they would renege on their current offer if another position has better opportunities for work-life balance/flexibility. Looking at how men and women feel about this, we discovered that female internship candidates value workplace flexibility slightly more than men in terms of reasons to renege, with 53% of women admitting they would rescind an offer for this reason, compared to 42% of men.  

While a superior work-life balance  wasn’t the primary reason why candidates said they have or would renege, a significant portion of both men and women across the board said it would be enough to sway them one way or another. As you market open roles, be sure to showcase flexible work opportunities and illustrate your company culture to candidates.  

From our findings it is clear that if a candidate thinks that another company is better positioned to help them meet their long-term career goals, they will back out of an offer. Don’t set yourself up for disappointment by neglecting to discuss career alignment with candidates during the interview process. Instead, ensure that your accepted candidates make it to their start dates and beyond by helping paint them a picture from the very beginning of what a long-term career at your company might look like. 

To uncover more about today’s Gen Z candidate, download our full report. Because armed with the data from our findings, you will be ready to take on the competitive labor maker confident that you understand the expectations and behavior of Gen Z.