You may not know at the conclusion of the interview or after your decision making process that you will accept the position. You may need more time to evaluate. (See accepting the Job Offer).
Many employers may give you a few days to to think it over. If the employer wants you decide to accept the offer immediately. You have evaluated it and decided not to accept the offer, you will politely thank the interviewer. Then explain briefly what you feel that you are not the right person for the job. Most employers will appreciate your direct and honest answer.
Many jobs are not offered at the time of the interview but are offered at a later time over the telephone, email, fax or by mail. If you are weighing all the factors about the job offer and then decide you do not want the position, let the prospective employer know right away. Thank the employer and give a brief explanation for your decision. Sometime they will offer you a counteroffer.
When rejecting a job offer by mail, or email send a short follow-up letter thanking them for the interview. Include a statement in your correspondence explaining why you are not interested in the job.
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