How to write a rejection letter to an internal candidate

While getting rejected from a job at another company is one thing, getting passed over for an internal role can be even worse. After all, internal candidates still have to go to work every day at the same company that turned them down. This can make it difficult to maintain a positive atmosphere and keep a talented team member. However, you can communicate using approaches that encourage and support employees, even after the sting of rejection. This guide shows you how to write a rejection letter for an internal candidate and break the news tactfully.

Best practices for rejecting an internal candidate

There are definite benefits to promoting from within a company, but like any hiring process, you’re going to have to reject some candidates. Once you’ve gone through the selection process, the challenge is choosing one candidate over another. The way hiring managers approach this can influence employees’ decision to stay with the company. It’s a tricky process that depends entirely on how you communicate with candidates and provide support for ongoing development.

Luckily, there are some best practices that can help you gracefully and respectfully reject an internal candidate and avoid leaving a bad aftertaste. Here are some of the best ways to tell an internal candidate they were passed over and help keep them engaged and excited for future opportunities.

Do it in person

The best way to share the news with the candidate is in person, if possible. In the case of remote work, schedule a face-to-face meeting. Have the discussion away from other teammates and in a private space. You can use an internal rejection letter alongside your meeting for documentation.

Be clear and offer a reason

Be upfront and let the candidate know immediately what the decision is. Explain what ultimately led to the decision, including insights into preferred qualifications, talents, and skills. This can help the candidate better understand what they’ll need to improve to qualify for future roles.

Offer guidance and support

Provide guidance and support to candidates to help them improve on the qualities that prevented them from landing the new role. For example, if one candidate was passed over in favor of another teammate with more advanced technical skills, offer ways to continue learning and developing in these areas. Candidates will be more likely to stick around post-rejection if they know their employers are actively supporting their professional goals and advancement, even if they don’t get the present role.

Check in with them post-rejection

Rejection stings no matter how you look at it, but you can help the feelings fade and ensure employees are cared for even after passing them over for an internal role. Check in weekly, bi-weekly, or monthly with internal candidates, and ensure they have the tools and resources to continue performing their current job and to support upskilling and additional development.

“An internal candidate who’s passed over for a position is twice as likely to quit post-rejection. However, when offered additional development opportunities to boost their likelihood of internal advancement in the future, this percentage drops.”

How to write a rejection letter for an internal candidate

While it’s better to communicate in person if you can, sending a letter turning down an internal employee can give you a way to share more insight into development and future advancement opportunities. Here are a few steps to help you write an internal rejection letter.

Personalize it

Don’t send a generic message. Personalize every part of your letter to the candidate, including key skills and qualifications that made them a likely choice for the job. State the name of the position they applied to and relate it to the candidate’s current position and how they might apply similar skills to upcoming internal roles.

Share feedback from the process

Let the candidate know the reasons behind the hiring decision. Maybe it’s something related to higher skill requirements, certain credentials, or other aptitudes that the company was looking for. Having this information can help internal candidates understand their strengths and weaknesses and improve on these areas for future jobs your company may open.

Provide more details or routes to advancement

If you know that additional roles are going to open up in the near future, share this information with the candidate if they have the qualifications. Provide skill development and training so candidates can build on the expertise they have in their current role and apply it to future positions.

What to include in an internal rejection letter

An internal rejection letter will differ between employers and job positions, so what you include will depend on your company’s unique situation during the hiring process. Even so, here are several elements you’ll want to cover in your letter:

• The job they applied to: State the position the candidate applied to within the first sentence or paragraph of your letter.
• Genuine appreciation for applying: Be sincere and specific with your appreciation. Let the candidate know you value their time during the hiring process and acknowledge their present contributions.
• The candidate’s skills and qualifications: Reiterate the key skills and qualifications that made the candidate a top contender and encourage further growth in these areas.
• Reasons for being passed over: Be direct and explain what the main factors were for the decision so candidates can use this insight to grow professionally.
• Additional information and support: An internal candidate who’s passed over for a position is twice as likely to quit post-rejection. However, when offered additional development opportunities to boost their likelihood of internal advancement in the future, this percentage drops.

Sample rejection letter for an internal candidate

Use the following template and sample for an internal rejection letter:

Letter template

[Greeting],

[Be direct and offer a clear statement and explanation of your hiring decision. Limit it to two or three sentences and include the job title of the role the employee applied for.]

[Offer genuine appreciation for their time and contributions to your team and company. Highlight the qualifications that stood out and how the employee can leverage these skills in the future. Offer additional development opportunities and professional support.]

[Closing statement],

[Name]

Sample letter

Dear Jack,

I’m reaching out to let you know that we’ve decided to move forward with another candidate for the senior developer role. I truly appreciate your time and patience during this decision.

Everyone on the team agrees that your contributions, skills, and experience are exceptional, and this decision is not a reflection of your qualifications. Our selection was based on the assessment of every candidate’s expertise and how well we feel they would fulfill the specialized needs of the role.

We are deeply grateful for your willingness and desire to take the initiative in advancing within the company. Your technical aptitude, successful product delivery, and continuing motivation to contribute high-quality work are essential to the team.

In the future, we may have a need to open up a senior team lead role, and based on your talents, we’d encourage you to apply for the position. In the meantime, please don’t hesitate to reach out with any questions or feedback.

Sincerely,

Joseph Jones

Using the right approaches to turn down an internal candidate helps soften the bad news and encourages employees to continue developing in the company. Be sincere when communicating with candidates and make the effort to continue to support their professional growth.

More resources on internal hiring:

Not sure where to start with an internal role? Find out how internal recruiting works and what makes it so beneficial.

Learn the art of rejecting candidates to improve your communication and support team relationships.

Even after getting turned down for an internal position, employees’ well-being at work should remain a top priority.