Why Are More Candidates Declining Offers? Seeking Insights for Root Cause Analysis

Hi HR Folks,

I work as an HR Generalist for the IT division of an MNC. We are facing the issue of a poor hit rate and high offer decline rates among candidates these days. I would like to conduct a Root Cause Analysis on this problem. What do you think is the reason for this increasing phenomenon?

Your valuable inputs would be highly appreciated.

Regards,
Sheeja

Hi!

There are 2 issues: poor hit rate and offer decline.

As for the poor hit rate, the recruitment process needs to be streamlined. Possibly the job description is not correct or not properly understood. The recruiter may not be aware of the sources where the right fit is available, and so on. Hence, a proper review of the process and recruiter training on the company's business needs to be done.

Regarding the offer decline, you need to analyze the reasons for offer declines. Are these offers declined upfront or afterward? A compensation survey may be conducted to gather the current CTC trends in your industry, and suitable corrections may be made. Also, the offers need to be explained carefully and convincingly, and professional benefits from joining the company need to be discussed in detail. If possible, a career path may be discussed with the candidate to explain their future in the company. If possible, a broad overview of the company's growth plan may also be discussed. An aggressive follow-up with the candidate may help build rapport. These measures usually work; however, the problem is universal.

Hope these inputs will help.

Anand

As an HR consultant, I would like to share my views.

Generally, if the recruitment process is a little fast, it will help in reducing offer declines. Because when you offer them and set a joining date with a huge gap, the candidate has the option to look for a better opening than what you offer. This actually gives them room to explore better options. So, I would suggest making the joining date as soon as possible.

Another aspect, as discussed by others, is CTC. When you offer the best package, there is no need for the candidate to decline the offer. While we cannot eliminate offer declines completely, we can gradually reduce the percentage of declines. If a person declines the offer, follow up and understand the reason for the decline to evaluate it.

As an HR professional, gut feeling can also help us a lot. Anyways, these are just my thoughts. Hope it's useful. Correct me if I am wrong.

Hi,

I think the Root Cause Analysis of the two issues raised would help:

1. Poor Hit Rate

2. Offer Decline

The causes for the first point could, among other things, be:

- The right segment may not be focused on
- The selection process might need to be relooked at and changed as required
- (As one of our colleagues pointed out,) The JD might need a relook
- The Competence Mapping might also need a relook
- Recruiters may need to be trained
- etc.

As for the causes for the second point, I think we all should remember that the host of regular HR activities could be summed up as "Selling the company/job to the present/prospective employee(s)". Given that, the reasons for the second issue could be:

- More clarity in the offer/benefits/career growth, etc.
- The "Right" assessment of prospective employees
- You may need to consider Psychometric Evaluation in the selection process to identify the hidden "needs" of the applicants (so that you may customize your offer to address them).

Hope this helps you.

Regards,

VAMSI

Good idea.

Root cause analysis might shed some light on why people do not join. However, my advice is to preferably run a good exit interview 2-3 months after an employee leaves and is firmly settled in the new job. The exit interview must have a singular purpose, i.e., the organization wants employee feedback to improve policies, procedures, systems, competitor standing, etc. Do not blend it with counter offers.

Surya