Quite often, when a client engages us to lead a search and fill a critical role, it’s because they’ve just tried to hire someone, and that candidate turned the offer down. This prospect could’ve come through their network, a contingent recruiter, or an in-house talent team.

We recognize that the client has invested time in carefully evaluating this candidate to ensure they have the necessary skills and are a good cultural fit and have made a solid effort to hire this person. Unfortunately, when a candidate turns down an offer, the search starts again from scratch, potentially setting the business back several months.

So, why does this happen, and how can you avoid this situation in the future?

A study by Glassdoor found candidates reject almost 20% of job offers. There is no way to completely avoid offer turndowns; however, when you approach these rejections as valuable learning opportunities as we have over our 20-year history, you will develop an innate sense for mitigating the risk in the future.

We are happy to share with you what we’ve learned over the years and the strategies that learning has culminated in.

Mitigating the Risk of Job Offer Declines: Our Strategic Approach

At Spire Search Partners, one of our value propositions is mitigating the risk of an ideal candidate turning down an offer and ensuring we secure the absolute best possible talent.

The strategies we employ, and that you can implement, to minimize the likelihood of offer rejections fall into three buckets:

  1. Dependable, repeatable hiring process supported by constant communication
  2. Pre-close candidates and manage expectations from the first interaction
  3. Never stop recruiting and build a pipeline of backup options

Let’s take a closer look at each one.

1) Dependable, Repeatable Hiring Process and Constant Communication

A survey conducted by PWC found that 49% of applicants have declined a job offer due to poor hiring practices. It astounds me how often I hear of even the most senior candidates coming away from an interview process, having had a very poor experience.

The stories I’ve heard go well beyond the ever-present lack of communication. It’s widely recognized that the best talent in the market are those who are not on the market. Passive talent has no reason to put up with poor communication, poorly set expectations, or broken processes that waste time and undermine the goal.

Interview Process and Plan

Start your search with a plan for who the candidate should meet and in what order. Each interviewer should be responsible for assessing a few key capabilities you are looking for. Each candidate should go through the same (or similar) process. Basic training on how to interview and formulate your questions is easily accessible; but, it suffices to say that “evidence-based interviewing” is one way to avoid making a bad hire.

Effectively Communicate Throughout the Interview Process

Clear communication is a must for managing expectations during the interview process. It is important to provide candidates with all necessary details not only about the role, company, target compensation, and benefits packages, but also the interview process itself, the interviewer slate, and rough timelines.

I understand when companies get held up in their process, but not letting a candidate know a search is on hold for a period or that they’ve gone with a different candidate is unprofessional and hurts the perception of your firm in the market. Keep in mind, people talk.

Thorough Candidate Assessments to Understand Motivations

The team at Spire Search Partners assesses functional and behavioral competencies, taking the time to understand the candidate’s motivations and career goals to ensure the opportunity is aligned.

Conducting assessments and evaluating the candidate’s alignment with the company culture and responsibilities of the role is essential; however, you must also consider the candidate’s true motivations and long-term career goals. It’s important to understand if they can do the job and if it aligns with where they’ve been and where they are headed.

Getting to know a candidate personally is a vital part of our process. Understanding their career motivations is just as important as understanding what is going on at home that might play into their decisioning, whether it’s a recent birth in the family, past relocation experiences, kids in college, or a recent home purchase.

Make no assumptions, but actively investigate situations that beg deeper understanding. Don’t just ask the question but pose potential scenarios to help them think through how their decisioning would play out. I find that candidates often don’t start thinking through a decision until after receiving an offer; at that point, it’s too late.

2) Pre-Close and Manage Expectations

We actively listen to each candidate’s concerns, ask relevant questions, and manage expectations throughout the entire process. We also collaborate closely with HR and hiring managers to ensure everyone is on the same page. This proactive approach through effective communication allows us to identify and resolve potential issues well before an offer is extended.

Pre-Close Each Candidate

Spire Search Partners begins a pre-closing process in our first call with a candidate. When we say pre-close, we mean managing both parties’ expectations from the start regarding compensation, firm culture, career path, etc.

The interview process is always one of discovery, but there are key elements that won’t change. I’m surprised by how many people I hear say they went through a whole interview process only to be offered a comp package below their current compensation or that they never shared key elements like work from home, reporting lines, benefits, or management responsibilities, at any point.

We gauge a candidate’s level of interest in the opportunity and address any potential deal-breakers early on. They can be difficult conversations to have when you really want that person on your team, but it’s best to discuss these things early and often. It’s well known in our industry that expectations can “creep” as they advance in the process.

Most importantly, we make sure each candidate is clear on the compensation package from the start. Sure, companies are required to post comp in their job posts now, but have you seen the ranges they provide? Know that every candidate expects the top of that range; and when they see how much you like them, perhaps it’s even higher.

At every stage of the interview process, we take their temperature and pose different theoretical scenarios to test their interest and motivation and ensure compensation expectations have stayed the same. Don’t forget that a strong candidate always has other opportunities: internally, with that former manager they provide as a reference, and from other competing firms.

We often see that once they start to interview, they start to test the broader market. So, it’s important that your finalists are committed to the process and embrace the vision. Assume the worst, and don’t be afraid to be blunt with the hard facts. Candidates, especially at the more senior levels, know their worth, are well-informed on the market, and are tapping mentors and relationships that will influence their decision-making.

That said, being brutally honest and setting boundaries will help remove “tire kickers” or those looking for a windfall early on. A small percentage out there are looking to price themselves on the market but have no intention of changing jobs. We always ‘stress’ the bonds that develop between a candidate and client to make sure they are strong.

3) Never Stop Recruiting & Have a Backup

In our 20+ years of recruiting talent for top firms, we’ve seen every possible pitfall that can undermine a high-quality process and a great new hire. When people turn down an offer, we want to know why. You, too, should investigate any time this happens. Learn from the failures and have a plan for avoiding them in the future.

Even with every effort we make to minimize the chances that a client’s preferred candidate doesn’t “fall off,” it can still happen. You can’t force an acceptance; you can only remove the hurdles that would otherwise derail a wonderful new hire. Setting expectations and uncovering potential issues ahead of time does not guarantee someone will accept an offer; sometimes, it’s just not meant to be, and forcing it, in my experience, will simply delay what will ultimately be a failed hire.

Another often overlooked value proposition we provide our clients is that we never stop recruiting for a role. We never let our clients have all their “eggs in one basket” because the chances of an offer getting turned down will always be material. Working with us, you’ll never get to the end of a process with only one option.

Even when you “fall in love” with a particular candidate and want to focus all your efforts on hiring that person, we are still bringing new talent to the process that is as good or better than that benchmark candidate. We are constantly raising the bar. You should do the same; yes, it can be time-intensive, but it’ll save you time in the long run and lead to better hires. Remember, there are few things that will burn more of your valuable time and resources than a bad hire.

Make the Most of a Candidate’s Rejected Job Offer

If a candidate turns down your job offer, investigate why and where the process went wrong so you can enhance your hiring methods and process. By understanding the reasons behind candidates’ declining job offers and implementing effective strategies for mitigating the risk, you will build stronger teams of top talent.

If you’re concerned about a hire you are making now, I’m happy to help make sure you get the result you are looking for. If you want to learn more and improve your game, let us know; we’d like to discuss it with you! Please contact me, Dennis Grady, and let me know your availability for a conversation.