Top Reasons Why Candidates Say No to a Job Offer
No matter how much we try to avoid it, rejection does happen on both sides of the job offer. In the same manner employers scrutinise job applications, you can be sure that jobseekers are appraising potential employers, as well. For companies, it can be disheartening to receive a rejection from a candidate after you’ve gone through the lengthy process of screening, interviews, and preparing the best hiring package you can offer.
But as with most setbacks, employers can use this experience to learn and improve. Generating feedback from jobseekers, adjusting your compensation package, and developing a better recruitment process can be helpful ways to respond to rejection.
Jobseekers Discern Job Offers
JobStreet by SEEK’s What Jobseekers Wish Employers Knew: Unlocking the Future of Recruitment report found that around 75 per cent of respondents in Singapore receive job offers multiple times a year. However, this doesn’t immediately translate to new jobs, as jobseekers consider many factors before they accept an offer.
Their top immediate deal breakers when it comes to accepting job offers include:
Financial compensation
Work-life balance
Relationship with superiors
Job security
Appreciation for their work
The Future of Recruitment report, a collaboration with The Network and the Boston Consulting Group, also found that Singaporeans place high importance on the recruitment process. Fifty-five per cent of respondents answered that they would refuse an attractive offer due to negative experiences during recruitment.
Employees now have a stronger influence over their employment terms. According to EY’s 2022 Work Reimagined Survey, employees worldwide have more power over the job market, driven by a desire for higher pay and better career opportunities amidst rising inflation and a shrinking labour market.
The Singapore Job Market Is Increasingly Competitive
The war on talent continues as more employers open up roles and minimise layoffs. According to JobStreet by SEEK’s Hiring, Compensation and Benefits 2022-2023 Outlook, 50 per cent of Singaporean employers feel that the job market will be more active in H1 2023. The survey, which gathered data from 438 companies, reveals that two out of three medium and large organisations are more likely to increase permanent full-time staff.
The increase in competition for talent, coupled with the rise of employee influence on the job market, can make it difficult for organisations to employ and retain their workforce. In an article in Human Resources Director, JobStreet Managing Director Chew Siew Mee urges employers to review their talent retention and acquisition strategies to stay competitive and attract the best talent.
Why Jobseekers Reject Job Offers – And What Employers Can Do
According to JobStreet’s Future of Recruitment report, jobseekers in Singapore consider financial compensation and work-life balance as top deal breakers when accepting a job. With 62 per cent of the Singaporean respondents feeling that they have a strong negotiation position, it is likely that they will look for better opportunities if their top needs are not met.
Here are jobseekers’ top reasons for turning down a job:
Reason #1: The salary package was not satisfactory.
As inflation rises worldwide, it should be no surprise that ample financial compensation is a top priority among many jobseekers. JobStreet’s Future of Recruitment report found that this factor is a top priority across talent segments, whether it’s digital talent, passive talent, experienced talent, or deskless workers. It is also the first thing most respondents look for in a job ad.
What employers can do: Make sure to mention the salary range and benefits in your job posting so that jobseekers would have an idea before they even apply. When negotiating salary with a jobseeker, find out what motivates them in setting their compensation. Elaine Orler, talent acquisition expert and Managing Director at Cielo Talent, recommends that you address all of the jobseeker’s compensation needs. Your organisation might not be able to meet their salary requirement, but the benefits might sway them.
Reason #2: They found better benefits that support their work-life balance.
The Future of Recruitment report found that the majority of respondents who are open to a new job (67 per cent) claim that better benefits at a new job would raise their interest in an offer. Having a good benefits package is crucial to an individual’s need for work-life balance. Working parents, for example, would appreciate the flexibility of a hybrid setup so they can spend more time with their children. Offering a substantial benefits plan would also help employees stay motivated at work and keep them engaged with the company.
What employers can do: Negotiate. Ask the jobseeker what benefits would make them join your organisation and figure out how you can make it happen. The Society of Human Resource Management recommends that employers pay close attention to what jobseekers are asking for and how that differs from what they’re currently offering. If you notice multiple requests for certain benefits, then perhaps it’s time to reassess your current program and update it with the current demand.
Reason #3: They accepted another job offer. JobStreet’s Compensation and Benefits Outlook found that more than 2 in 3 candidates turned down a job offer because they accepted another job offer. The tight job market has resulted in many companies bumping up their benefits and compensation packages to remain competitive in the industry. This may include salary increases, mental health benefits, flexible working policies and promotions.
What employers can do: HR can ask the candidate during the interview process if they’re fielding other job offers at the moment. Ask them upfront if a particular factor would be critical to their job acceptance. Once you know that the jobseeker you’re eyeing has other offers on the table, you can better prepare a competitive job offer for the candidate, one that aligns your needs and wants with theirs. A flexible employer is important to jobseekers; lack of flexibility to match their needs would make them refuse an otherwise good offer, according to the Future of Recruitment report.
Reason #4: They decided to stay with their current employer. According to the Future of Recruitment report, most Singaporeans prefer a stable job with a good work-life balance so that they can spend time with their family, friends and hobbies. If their current employer offers them a lucrative counteroffer, they can avoid subjecting their lives to unnecessary upheaval by moving to a new job.
What employers can do: Ask for feedback – what about the counteroffer was the biggest driver for them to accept? Again, finding this out during the job interview will go a long way in easing your screening process. Ask them how they feel about their current role and employer – would they be open to considering a counteroffer from their present company? Knowing this information beforehand lets you set your expectations as an employer so that you know when you should move on to the other applicants for the role.
Reason #5: Concerns their work would be too difficult/easy. The Future of Recruitment report found that Singaporeans are motivated by progressing to a leadership position and would like to work on exciting products, topics or technologies. Individuals go on the job hunt to #SEEKBetter, looking for a role they are passionate about to achieve a fulfilling career. If they find that a job will burn them out or bore them, then they will look elsewhere.
What employers can do: Share your company’s career development plan with the candidate. Let them know that you value their contributions and that your organisation is willing to invest in their development to help them improve. Training and upskilling programs, mentorship initiatives, and the like will let the candidate know their career growth is valued by your company.
Recruitment is a two-way process. Employers should be aware of the impression they leave on the candidates and how this can impact their response to their job offer. Listen to your candidate’s needs, be prepared to negotiate with them, and if they still decide to reject your offer, ask for feedback on how you can improve. Who knows? Maybe your learnings can lead you to find the best talent yet.
For more recruitment tips, check out our Employers Insights page. Register to JobStreet now and find the best talent via Talent Search.