What is reneging and what should an organization do when it has to renege on a job offer?

What will be an ideal response?

Often companies that renege on a job offer will give the job offer receiver compensation for breaking the contract. Instead of reneging, it may be possible to defer the new hire's start date and offer the person a partial salary in the interim. Alternately, it might be possible to hire the individual as a consultant or temporary employee and convert him or her to a full-time hire as soon as possible (for example, after a hiring freeze is lifted). Being honest and treating the new hire with respect during the reneging process can soothe the anger and feelings of inequity the person is likely to experience, and keep the individual interested in working for the firm in the future.