Reneges are a significant challenge for University Recruiting programs, resulting in financial losses and wasted resources. When students accept offers only to decline them before their start dates, it can be disruptive to the hiring process. Understanding why students renege on offers and implementing strategies to prevent it will save your organization time, money, and frustration.

The Current Trend: Are Reneges Increasing?

Fortunately, average renege rates have remained relatively stable over the 2023-2024 recruiting cycle. Renege rates for interns increased by 1%, full-time hires by 1%, and returning hires remained at 6%

However, not all employers are experiencing stable renege rates. 32% of companies reported an increase in renege rates for full-time roles. The highest number of increases were reported by the CPG/Retail industry for internship roles and the Pharmaceutical/BioTech industry for full-time roles.

Why Do Students Renege on Job and Internship Offers?

According to our research, students typically renege on offers for four primary reasons:

1. Better Compensation

A more lucrative offer is the leading cause of reneges. 69% of students who reneged cited better pay as a contributing factor, with 26% saying it was the most influential reason.

“I reneged because I received a much better offer at a more established company. The other offer had over 3x better pay and a more structured intern program.” – Computer Science Major, 2024.

In early career roles–especially in cohort-based programs–job offer negotiations are often restricted to ensure equity and avoid favoring privileged students. Because the majority of companies don’t offer the opportunity to negotiate, providing a competitive upfront offer is crucial to reducing reneges.

2. Increased Interest Alignment

Students are more likely to accept a position closely related to their field of study. 56% of students reneged on offers after finding roles better suited to their interests. This tendency reflects students’ desire to find opportunities that closely match their career goals.

When students receive offers for roles that don’t align with their aspirations or values, they might continue to seek roles that offer a better fit. Asking interview questions on students’ goals and interests to verify they align with the role can increase the likelihood that you’re selecting candidates who are less likely to renege.

3. More Appealing Role and Responsibilities

For 53% of students who reneged, the appeal of a more attractive role was the primary reason for their decision. Students may prioritize opportunities that more overtly promise tangible achievements and rapid career growth in their job ads or offers.  

This highlights the importance of providing high-impact programming such as resume-worthy projects and creating a career site that highlights these opportunities.

4. Concern Over Economic Uncertainty

There’s a working hypothesis that a slowing economy might reduce reneges as students receive fewer job offers. However, understanding the nuances of reneges provides more context, as students are responding in two distinct ways: Holding and Hoarding.

Holders are likely to accept the first offer they receive out of fear that they won’t get another one, even if the role isn’t ideal. Hoarders, on the other hand, continue searching or accept multiple offers due to concerns about offer stability and may renege on less favorable offers closer to the start date.

How to Prevent Reneges: Strategies for UR Leaders

While some factors may seem beyond your control, there are proactive steps you can take to reduce the likelihood of students reneging on their offers:

Advocate for Competitive Compensation

Regularly audit compensation packages and benchmark them against industry standards. If pay is a primary reason for reneging, consider appealing to leadership for salary budget increases. If raising salaries isn’t feasible, emphasize other benefits your company offers, such as flexible work arrangements, professional development opportunities, or a strong company culture.

Provide Ample Decision Time

82% of students report that pressure from acceptance deadlines impacted their decision to renege. Rushed decisions often lead to students accepting offers they might later reconsider if a better opportunity arises. Allowing more time for candidates to evaluate their options can reduce the likelihood of reneges.

Enhance Communication to Build Engagement 

Last, but certainly not least, consistent and personalized communication can significantly improve candidate engagement. 80% of students want to hear from employers at least once a month after accepting an offer, and 64% report increased excitement when contacted 2-3 times per month.

Consider adding new hires to newsletter distribution lists, encouraging them to share their commitment publicly on social media, and sending personalized notes to maintain a human connection prior to start dates.

Fostering social connections within entry-level roles is equally important. Organize online group chats, in-person events, or assign mentors to new hires. 74% of candidates report that having a mentor before their first day positively impacts their perception of the company.

By implementing these practices, your organization can improve new hire engagement, reduce the risk of reneges, and create a smoother, more efficient recruitment process.