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I recently posted a poll on LinkedIn asking the question:
Is signing an employment contract with a new employer a binding commitment to start working with them?
36% of people said yes, while 64% said no, not necessarily.
The majority of recruitment systems rely on the signing of an employment contract to initiate the onboarding process. For example, if the start date is one month away, a laptop needs to be ordered, internal accounts need to be set up, and the team needs to be informed.
The results of our poll highlight that there’s a real incongruity between how seriously talent are taking the signing of employment contracts versus the implications. HR professionals and hiring managers rely on the validity of a signature, but the strength of that signature appears to have diminished.
While we can’t pinpoint definitive data from 15-20 years ago, anecdotally, based on my experience in the recruitment profession, individuals in the past generally wouldn’t sign an employment contract unless they were fully committed to following it through.
Something has changed over time.
Perhaps the rise of the gig economy, people more frequently moving between companies, and a weakening of the traditional employee-employer relationship have contributed to this shift. While we can’t fix this problem overnight, there are ways to proactively minimise the likelihood of this happening.
What can companies do to reduce the risk of someone signing an employment contract and not starting work?
Firstly, once the person has verbally accepted the employment offer, there should be active encouragement not to sign the contract unless they are truly committed to starting the new role.
Secondly, the consequences of signing the contract should be made clear to the new hire: once signed, the team will be informed, the laptop will be ordered, the desk will be prepared, and people who didn’t get the role will be regretted. There’s both a procedural and an emotional element to this, ensuring that the individual understands the consequences of signing a contract and later backing out.
Thirdly, touchpoints between contract signing and start date are critical. Once the signed contract has been received, arrange an informal meeting, such as over coffee, a visit to the office, or a brief introduction to the team, so the individual has a near-term commitment before starting.
Finally, it is essential to verify that the individual has withdrawn from all other recruitment processes. Too often, companies assume or hope this has happened, but in light of our poll, that’s probably not a safe bet.
At Barden, our advisory team works with clients on a case-by-case basis to develop controls tailored to their specific processes and needs. If this would be helpful, reach out to me at ed.heffernan@barden.ie