You made an offer to your perfect candidate only to have the offer turned down. Being jilted at the altar is painful! And, in addition to the pain of rejection, the time and money you spent on the hiring process goes down the drain.
According to a recent CareerBuilder survey, 39 percent of respondents declined offers because they accepted another offer. But why do they accept these other offers? Long hiring cycles can be partially to blame for rejected offers. A candidate’s interest wanes and competing offers may be received while hiring managers continue their search for a Purple Squirrel (a candidate that doesn’t exist.)
Let’s assume there were no delays in your hiring process. If candidates are accepting other offers, there is a good chance your company’s compensation plan is not in alignment with current market conditions.
Survey after survey reveals that compensation and benefits are the main reasons why people look for new job opportunities.
The bottom line is money talks!
Here are the top reasons why candidates reject offers according to the CareerBuilder survey.
• Accepted an offer from another company. (39%)
• Total compensation is not high enough. (29%)
• Received a counteroffer from current employer. (10%)
• Job location is undesirable. (9%)
So, what should you do if your job offer is rejected?
Ask Why: It is important to know the reason why a candidate turned down your offer so you can learn from the experience and adjust for future hiring decisions.
Counter back: Sweeten the pot with higher salary and benefits, more vacation time, better job title, or more advanced responsibilities. Assuming no competing offers, the cost of re-starting the hiring process may cost more than bumping up the base salary.
Walk away: Sometimes the candidate knows what’s best for them. Trust their decision and move on to other candidates.
Try again: Make an offer to your runner-up candidate or start sourcing again for a new pool of applicants. Stay positive. Sometimes a better candidate comes along!
If you need help navigating and negotiating an offer with a candidate, give us a call at 317-578-1310.