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I tend to keep all of my rejection conversations the same. You can’t let your personal emotions get in the way of this job. It’s better just to have a templated idea of how you want the conversation to go.
Subject Expert
Less is more. I say that as if it's simple, but I REALLY struggle with this.
I do my best to keep the conversation short, stick to facts, and don't react if they get upset. One thing that has helped me is working with the hiring manager to align on a couple key points that drove their hiring decision that I can then share with the candidate.
You are 100% spot on with your comment about not overstepping the team. Ultimately, that is who we work for.
Something else I do is ask the hiring manager if the candidate is a "no for right now" or a "no for the company." The second answer leads to a different, and more difficult conversation with the candidate. The first can lead to a discussion that ends with a confirmed follow up at a future date and perhaps a future hire.
In the end, it will always be a difficult conversation but if you stick to being genuine, sharing facts and not getting too personal that helps.
But again, I do struggle with this and certainly don't mean to imply that anything I've shared above will make the conversation easy.