Over 1 in 6 Job Offers are Rejected in the US and 1 in 3 Employees Likely to Quit Within the First 90 Days – How Can Organizations Tackle this Huge Challenge?
This basically means right from giving job offers to retaining employees beyond the first 90 days- organizations have a success rate of just 50 per cent.
Yes, 50 per cent!
That’s half of the precious time, effort, and money spent in crafting job advertisements, reviewing resumes, conducting interviews, training new employees gone down the drain.
Organizations can no longer ignore this challenge that only seems to be getting worse with time. The Great Resignation Challenge has added fuel to the fire.
Shouldn’t there be a lasting solution to this predicament? Understanding common reasons for such high attrition and rejection could be a step in the right direction for leaders to steer clear of the vicious cycle.
Why Candidates Reject Job Offers
Once the job offer is rejected, what follows is the recap of the same gruelling process in search of the next ideal candidate. And who knows whether the next ‘best’ would accept the offer? Here are some of the most common reasons why candidates reject job offers-
· Below Market Pay
Salary can significantly influence any candidate’s decision. As per a Glassdoor study, money is the biggest motivator for 67% of job seekers. So, if you aren’t able to meet their salary expectations, they might keep searching even if they don’t already have another offer.
Solution-Rope in a specialist who can help you plan the compensation structure that keeps you in the game without making you go overboard with your budget.
· Better Offer from Elsewhere
Another reason candidates say “No” to your job offer is that they already have a better offer from another company. If they prefer the other employer just because of your low base salary, you might be able to win them over with other benefits, add-ons, and perks.
Solution- During the interview phase, try to know more about the candidate’s current situation. For example, ask them if they’re appearing for other interviews, their salary expectations, etc. To quote Don Corleone from The Godfather, “Make an offer they can’t refuse”.
Company Culture is Not the Right Fit
According to a recent survey, 77% of the adults consider the company’s culture before seeking a job there. While you might believe that your organizational culture is inclusive and supportive, potential candidates might have a different opinion.
Solution- You can conduct regular pulse surveys to track the current state of organizational culture. Understanding employee problems and religiously working towards their solutions can help improve your company culture.
· Long Recruiting Process
The average duration of the hiring process is around 23.8 days. Although it can considerably vary based on the role, you’re hiring for. The process is generally longer when hiring for executive positions or highly skilled jobs. The problem with a long hiring process is that candidates can lose interest and shop for offers from other organizations.
Solution- Streamline the hiring process to avoid any delays. Use digital solutions for conducting remote interviews. Ensure that you regularly communicate with the candidates throughout the hiring process.
· Inadequate Work Flexibility
The work flexibility expectations have zoomed since the pandemic. In fact, a survey has found that up to 44% of the workers won’t mind a pay cut in exchange for a more flexible work schedule. If your organization is rigid with matters related to workday structure, it might result in higher rejections.
Solution- Take inspiration from the pandemic to build a flexible working solution. Hybrid working, a combination of remote and in-office schedules, is preferred by most employees. If you’re planning to ask your employees back to the office, or The Great Employee Recall, as I like to call it, make sure you do it right.
Improving Retention of New Employees in the First 6 Months
So, you’ve found the right candidate, and they accepted your offer. Great! But things are far from over. You could still lose out on about 1 in 3 employees.
So why such a high attrition rate, and what can you do about it?
1. Feeling of Neglect
When new employees cannot find the support system they need from their managers and colleagues, they feel neglected. Work is affected negatively, and productivity plummets. This feeling of isolation and lack of purpose often make them leave their new jobs.
Prevention
- Consider an open work culture
- Regularly collect feedback, especially from new employees
- Conduct team meetings for discussing and addressing non-work related issues
- Balance the learning and the doing part
2. Burnout
According to a Deloitte survey, 77% of the employees agree to have experienced burnout at their current job. For new employees, adjusting to the new workplace is often the main culprit for this feeling of exhaustion.
Prevention
- Refine the onboarding process
- Clearly define your work expectations
- Give new employees adequate time to settle
3. Candidate Experience
From the first call for an open position to onboarding, candidates go through several experiences that could be frustrating and haphazard or comfortable and seamless. If it is the former, the prolonged disappointment could make them leave.
Prevention
- Be open to communication
- Create an effective employee orientation program
- Provide adequate training
4. Lack of Mentorship
When employees start working for a new organization, there is a psychological need for a sense of belonging and purpose. If the mentorship program is poorly designed, the new hire might find adjusting to the new culture challenging.
Prevention
- Ensure seamless collaboration between experienced employees and new team members
- Create a collaborative work culture with a focus on inclusion and diversity
- Reward regularly
