Candidates use the recruitment process to evaluate potential employers across a range of aspects – work environment, the employees they meet, the hiring manager, employee value proposition, the tools provided to do the job, organisational branding and performance. 

Applying for a job involves an investment of time, while changing jobs impacts how a candidate spends a significant portion of their time overall. So, it’s a big deal!  As a result, it’s common for candidates to play it safe, choosing to stay in their current job if they’re unsure. A Gartner survey released late last year found that while only 27 % of Australian job seekers had received multiple offers in their last search, 41 % still declined offers that didn’t meet expectations. The hiring manager, therefore, plays a role in making the job and organisation more appealing. 

We asked our consultants why candidates decline offers, and they gave us three key reasons. Please note that salary can be an underlying factor for all of them. 

1. Your value proposition doesn’t stack up 

An employee value proposition (EVP) is the unique set of offerings your business provides employees, with key components including employee compensation, benefits, professional development opportunities, work environment, company purpose, culture and values. 

So what happens if your value proposition doesn’t meet expectations? According to the Gartner survey, 67 % of Australian candidates exited the hiring process due to at least one mismatch in EVP preferences. Your value proposition may not stack up for many reasons, whether it's growth opportunities, flexible work arrangements, a broader lifestyle, salary, or values. It is often obvious when a company doesn’t reflect its values, or when it doesn’t value its employees. 

In some instances, it isn’t a bad thing if your value proposition is a mismatch during the recruitment process. Many organisations oversell their company, then invest in training only to lose employees within the first 12 months. However, if your value proposition doesn’t appeal to any candidates, you have a problem. 

It's important to understand what top candidates are looking for and collect constructive feedback on why they rejected an offer. If there are commonalities that can be improved, use this as an opportunity for change within the organisation. Honest feedback is more likely when using a recruitment agency, as the candidate will feel more comfortable providing direct feedback to a consultant with whom they have a relationship. 



Key action points: 

• Define your EVP so you can clearly articulate it.   
• Be clear about the intangibles you might offer that other companies don’t. 
• Paint a realistic picture of how the organisation functions to avoid turnover. 
• Gain feedback on how your value proposition can improve. 

2. The candidate experience wasn’t great 

A common reason a candidate rejects an offer, according to our recruitment team, is because of their experiences during the recruitment process. We’ve previously discussed how critical this is when looking at considerations to attract and engage top talent. 

Interestingly, over 60 percent of Australian employers are using artificial intelligence hiring systems to screen and shortlist job candidates, some extensively. Yet this may negatively impact the candidate experience and expose organisations to discrimination claims.  New research about Algorithm-facilitated discrimination from Dr Natalie Sheard has found AI hiring systems may in fact "enable, reinforce and amplify discrimination against historically marginalised groups".  Furthermore, a recent survey found that 44% of Australians would reject an offer if a recruitment process relied too heavily on AI.  This means organisations need to be careful to find the right balance. 

Personalising communication at key points helps. This includes communicating timeframes and meeting them, as well as explaining why elements of the process that require more effort from applicants are necessary, such as verifications of licences/qualifications, work rights, health assessments (for roles requiring physicality). Streamlining these processes facilitates confidence in your organisation. 

The candidate’s experience with company representatives, and specifically their potential manager, is most crucial. Our Employer Interview Guide helps hiring managers make a good impression. Furthermore, our consultants have highlighted the following hiring manager behaviours that candidates say make them second-guess working for a company: 

• Lack of enthusiasm (often interpreted as for the company). 
• Lack of focus or planning (either through poor interview techniques or not having prepared for the interview). 
• Lack of respect (an interview style that is too interrogative or where inappropriate questions are asked). 
• Lack of connection or attempt to connect (many candidates understand the impact of a manager on their ability to like and succeed in their job and are looking for rapport in an interview). 

Often the candidate hasn’t ruled out the company after the interview, but feelings of concern can increase as they reflect on it, particularly if they’re interviewing for other roles, or they are comfortable in their current job. 

In Australia, employers who fill vacancies within a month find it easier. According to the Department of Employment and Workplace Relations, 33 % of employers who filled a job within a month found it easier, while 30 % of those taking longer than a month reported increased difficulty. In fact, a prolonged recruitment process is a common reason candidates reject the offer. A delayed offer means the candidate could still be interviewing elsewhere or simply lose interest. 

3. Misalignment of expectations and role 

The third reason an offer may be rejected is a disconnect between expectations and reality. There are many ways this can occur from the job advertisement alone, including pitching the salary too high or too low, misrepresenting the role's core tasks or the company’s success, or expecting a range of skills that few people possess.   

Underselling or overselling a role can be off-putting, as can a poorly designed job description. Job descriptions often evolve over time and may end up being a wish list, rather than a realistic task list for one person to manage. Candidates are usually keen to understand what is involved day to day in their role, how varied it is, and where the opportunities for growth are. More importantly, they’re quick to pick up misalignments. 

Despite talk of a candidate market easing, many regions, industries, and occupations remain tight. Prior to advertising, it is worth reviewing the Australian Government’s Jobs and Skills Atlas to understand where your occupation and region may fit. For example, right now there is a ‘suitability gap’ in Civil Engineering, which means that while there may be enough professionals in the market, there aren’t enough with the experience and/skills employers are looking for. 

According to our recruitment team, it is very common for a hiring manager to have a skills list that doesn’t reflect the market rate for those skills. This extends recruitment timeframes and usually results in a compromise anyway. 

Key action points: 

• Check the Jobs and Skills Atlas before finalising the job description. 
• Differentiate between skills that are non-negotiable (and realistic), and skills that can be acquired through training. 
• Ask other staff members to review the job description to determine whether it is realistic. 
• Ensure hiring managers can answer what a day in the life of the job involves. 
• Consider a salary range so your offer reflects the skills and experience of the chosen candidate. 

For talent mapping or recruitment support, let us help you find talent or contact Bayside Group today. 

Recruitment takes time, so declined offers can be frustrating. Common reasons include a weak value proposition, issues during the process, and mismatched role expectations.