Want to lose your top candidate?
Extend a lame job offer. And don't show the love.
With demand for good people off the charts, candidates are rejecting job offers at the highest rates I can recall in my 25 years as an executive recruiter.
Even if you haven’t noticed a rise in candidates saying No, don’t get complacent. Because you soon will. As unemployment has fallen to record lows, more and more candidates are recognizing they hold the cards and can wait patiently for a strong offer.
Reminds me of Warren Buffett’s investing advice: "Sit there and watch pitch after pitch go by and wait for the one right in your sweet spot."
It's not just me. I just read a survey of 439 businesses conducted by Express Employment Professionals which found a significant increase in the number of people turning down job offers from just 12 months ago.
The trend spans the entire breadth of the economy from C-level positions, middle managers and entry-level first-time jobs.
In fact, college grads are rejecting jobs at the highest rate in ten years, with offer acceptance rates falling from 74% to 68%—demonstrating how quickly the job market has changed in favor of candidates.
To complicate things: upon receiving an offer, today’s job seekers are much more likely to solicit offers from other companies. They’re essentially ringing the bell and saying, “It’s time to decide. Do you want me?”
So, what should you do? Here's what I've found works best:
Know what your candidate craves: Listen closely to determine the candidate’s priorities during the interview. I ask this during the very first phone screen. How are they frustrated? What’s missing in their current role? What’s their pay? Is their boss a bozo?
Some will be at a point in their life where comp and benefits are most important. Others want a better work/life balance and the flexibility to work from anywhere. Still others are focused on career path and opportunities to broaden their skills.
Don’t assume. Find out what matters most to your best candidate and find a way to provide it.
Better candidate experience: Every single step of the recruiting process provides candidate touchpoints. Make sure yours are efficient, informative and welcoming.
Scratch that. It's not enough. Your touchpoints had better be impressive. From first phone screen to the welcome gift and onboarding plan you send with the offer letter.
You shouldn’t be treating candidates any less stellar than prospective customers. (These days, they’re even harder to find.) Remember: the candidate is evaluating you at the same time that you're assessing them. Just look at your Glassdoor reviews to see what I mean.
Keep the candidate fully informed throughout the selection process, provide in-depth information about every aspect of the job, answer every single one of their questions, and help the candidate to understand how amazing it will be to work at your company.
Show them the money: Most of my clients are too concerned about overpaying for candidates.
If your top candidate is a B-Player who wants out of their current job, a mediocre compensation offer probably will fly. But if you’re recruiting a rockstar, a less-than-stellar offer will be a non-starter and motivate them to keep looking.
Don’t quibble over a few thousand dollars or be constrained by some salary range policy (that hasn’t been benchmarked in three years, before this hypercompetitive job market began.) In today’s tight job market, if you have a great candidate in your sights, make an offer that’s in the top quartile for the position and your geography.
And start with your best and final offer. Offer like you mean it.
Give Them a Great Place to Work: Top performers are attracted to a company where people are passionate about what they do, work together effectively, and have a great work/life integration.
If you’re not there yet, it’s time to redouble your efforts.
As a four-time entrepreneur, every hour I spent building a great place to work made my recruiting that much easier. Not to mention employee retention.
But don’t oversell. Explain to candidates the best aspects of working for your organization and address any significant criticisms of your workplace that might appear on social media sites frequented by job seekers.
It’s time to listen to your most important customer: your employees and candidates.
Provide them with a challenge and career path: Even more than money, rockstars want to do important work that contributes to the success of your organization and allows them to advance in their career.
If the position you’re offering isn’t engaging and lacks advancement potential, your top candidate will likely turn you down. You can settle for a B-player. Or, far better, you can rescope the position so that it is more appealing to an ambitious rockstar candidate.
Use the trial close: When you’re definitely interested in a candidate–but before you invest time in reference checks–it’s a good idea to conduct a trial close to make sure you’re on the same page in regard job title, compensation, timing, and other essential elements. "Are you inclined to accept, if you received an offer today?"
Respond to their objections, questions, and negotiating points. Tell them you’re committed to making this the most interesting, engaging, and challenging job they’ve ever had and that you really want them on your team.
Show them the love.
If the candidate’s expectations are way out of line–or out of your range–at least you know that early on and can move forward with other candidates.
When Your Candidate Says No
Of course, even if you’ve done all these things and made a great offer, your top candidate may still turn you down or ask for more time to consider.
Don’t be impatient or upset. Keep the lines of communication open and address the issues. I’ve been at this for 25 years and it’s not over until it’s over. I’ve seen many candidates come back to the table after first saying “No.” I don't give up when I see something I want, nor should you.
If the candidate expects to receive another offer, tell them that you understand that a person of their caliber is in high demand and ask to set up a time to compare offers and to adjust on your end so that the final decision will be easy for them.
And, like a kid on a schoolyard, ask for "last ups." I want to chance to leapfrog their other offer.
If the candidate presents a list of things they want, determine what you can accommodate and what you cannot, and ask the candidate: “If we can do these things, are you prepared to accept today?” At this stage, always be closing.
Setting a deadline will increase your chances of success. Don’t bully. But let the person know you have a viable backup candidate and–for the sake of your business–you need to agree on a timeframe for them to accept or decline your job offer.
You must be at the top of your game in today’s tight job market.
Give candidates a great experience, present your organization in the best light and make an excellent offer to your top pick.
But, just to be sure…
Always have a backup candidate.
