Turning down applicants is part of doing business. But when the candidate is already on your team, the conversation gets more complicated. Whether the employee applied for a promotion or a lateral move, being told “you didn’t get the job” can feel deeply personal.
Handled poorly, these conversations can lead to disengagement, resentment or even resignation. But with the right approach, you can protect morale, foster growth and preserve the relationship.
Here’s how to tell an internal candidate they didn’t get the job—without losing a valuable employee in the process.
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Internal candidates come in with hope, excitement and the belief that their company sees their value. When those expectations aren’t met, disappointment is natural. But if the rejection also feels impersonal, unexplained or unfair, it can seriously impact motivation and retention.
That’s why internal job rejections require more care, clarity and follow-up than standard hiring decisions.
Time matters. Internal candidates should hear the decision from you—not from the company rumor mill or social media announcement.
Before delivering the news, outline what you’ll say and anticipate questions. If the decision came down to specific qualifications or experience, be ready to explain them clearly and respectfully.
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This isn’t a message for email or Slack. Deliver the news face-to-face. It shows respect and allows your tone, facial expression and empathy to come through. If remote, schedule a video call—not just a phone call.
The importance of this cannot be understated.
What’s more, facial expressions, tone of voice and body language can express sincerity and empathy toward the internal candidate and those are never present in an email.
Let’s face it, we’ve all received or sent a text or email that meant one thing, but without being face-to-face (or even on the phone) was completely taken the wrong way.
This isn’t the time to take that chance and simply adding an emoji to your email doesn’t compare to an honest, caring face.
Organizations often extend job offers to qualified internal candidates because they know the individual already is a culture fit with the organization. So, when an external candidate is chosen, often it has to do with the internal candidate lacking specific skills or experience. It is best to be honest about what those skills are and why they are critical to the position, which is one of many reasons it is imperative businesses have up-to-date job descriptions.
Without solid job descriptions, you may not be able to say exactly what skills and experience the internal candidate was lacking and it could lead the individual to think discrimination occurred in the selection process. The last thing you want is for an employee to file a formal complaint against your organization.
Accurate, up-to-date job descriptions can provide some level of protection in this area.
Finding out they didn’t make the cut for a new position within your organization can be unsettling for candidates and will likely have some impact on their self-esteem.
Make sure they leave the conversation knowing they’re appreciated. Highlight what they bring to the company and why they’re an important part of the team—even if this wasn’t the right role.
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Upon finding out a particular skill set was lacking or the desired level of experience just wasn’t there, it’s only natural for the employee to want to know how he/she can further develop to meet the criteria for future promotions.
While this isn’t the time or place for a full-on performance review, you should ask about the individual’s professional goals.
Maybe the reason the individual wanted this particular position within the company could be achieved without changing departments (i.e., more responsibility, more money, a chance to be a leader). You may be able to provide a plan of action for the employee. For example, if certain certifications are recommended for promotions, the employee could begin pursuing those now.
The last thing you want to do is make your employees feel like they have reached a dead end in their careers at your organization.
Imagine you’ve just told an internal candidate they didn’t get the job. As you see the look of disappointment settle onto the employee’s face, you suddenly offer up, “Don’t worry, I promise the next promotion is yours.”
No one knows what the future holds and there’s a chance there will be a better-qualified candidate for the next position, as well.
If you don’t hold up your promise, the internal candidate could become very disgruntled with your organization. So, while softening the blow may make it less awkward for you when delivering the news, it could backfire in the long run.
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When it’s all said and done, make a point to circle back with the individual a week later — whether it is coffee or a quick meeting — to see how things are going.
Share any resources you promised or offer additional support. This second conversation reinforces that they still have a future at your company—and that you’re invested in it.
Turnover is expensive. Contact our HR experts today. >>
One internal rejection can ripple outward if not handled well. Other employees may be watching. That’s why it’s important to:
Stay consistent in how internal decisions are communicated
Use accurate, up-to-date job descriptions
Offer meaningful feedback and next steps
Prioritize transparency in your hiring process
Rejections don’t have to be career dead ends. They can be turning points for growth—if the conversation is done right.
At Axcet HR Solutions, we pride ourselves on being your trusted HR outsourcing company, equipped with a dedicated team of HR experts. Our mission is to support you in navigating challenging situations with ease.
Whether you face daily HR concerns or encounter complex issues, our team is ready to provide reliable guidance and assistance. Count on us as your go-to source for comprehensive HR consulting services.
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