50 Percent of New Hires Change Their Minds

A recent survey conducted by HR consultancy Gartner of nearly 3,500 respondents found that 50 percent of candidates accepted a job offer between May 2022 and May 2023, backed out, then started working for another employer.

SHRM’s blog says among nearly 2,000 respondents who recently started a new job, 47 percent said they were still open to other job offers, and 42 percent believed they could find a better job if they kept looking. If you’re an employer, your reaction is undoubtedly “yikes.” But not all of you. A good number of those backing out received counteroffers from their current employers.

BTW, counteroffers are usually a bad idea for both the company and the employee. The reasons they had for looking for a new job haven’t gone away. Science tells us that the satisfaction that comes from the raise wears off fairly quickly. The issues will come back to the surface, and the employee will almost certainly start testing the market again.

But those that take offers and still keep one foot in the job market are sending a strong signal that they don’t feel an obligation to… well, their obligation. Many are turned off by the hiring process; multiple interviews, long periods of no communication, recruiters who can’t connect well with candidates, onboarding that feels unfriendly – all give candidates time and an excuse to keep shopping during the hiring process.

Over the past couple of years, candidates who signed on for remote or hybrid work and find out they’ve been ordered back to the office full time often consider that a reason to take another offer. Changing even small terms of the employment agreement can feel like a breach of trust, and that also dilutes the obligation a new hire feels to the company.

What can employers do to stem this trend? One strategy is to stay engaged with the candidate after the offer is made. Jamie Kohn, senior research director in the Gartner HR practice and author of the report says, “It’s during those weeks after an offer acceptance but before the start date when the doubt creeps in. Keep them engaged and excited, and reinforce to them that they made the right decision.”

Another strategy to mitigate the damage from new hires backing out is to stay in touch with the candidates you liked but didn’t offer for. Your second choice is often a close second, and you may still have a chance at hiring them. Make your “thanks but no thanks” communication warm and human. Have the recruiter call the candidate and tell them what you liked about their skills and experience and how much you enjoyed meeting them  – a sort of reverse thank you. Check in via LinkedIn or email every few weeks to see if they’re still in the market. If your first choice for the position backs out, it will be easy and natural to reconnect with number two and make the offer.

And unlike the candidate who knows they were your first choice, number two may be thrilled to get a second chance at the job they really wanted. That makes them much less likely to back out.

“If you treat people right they will treat you right… ninety percent of the time.” Franklin D. Roosevelt