There’s no denying that the recruitment landscape has been challenging to navigate in recent years and we continue to see it evolve as we begin 2024. A big shift in the norm that the team here at PPR Ltd has seen over the last 12 months is an increase in job offers being declined – in fact, 40% of job offers during 2023 were rejected. And when firms are competing for talent during the ongoing skills shortage, this is an important trend to keep an eye on.
Candidates could decline a job offer for a wide range of reasons and this is a normal challenge faced during any firm’s recruitment drive, however we’re seeing this happening more and more. So, what is causing candidates to reject job offers? Why are firms missing the mark with their offers? And what can your firm do to ensure you’re not letting talent slip through your fingers?
Remuneration expectations
When embarking on a job search journey, we encourage all candidates to research where their current position in the market is. This includes considering if their current salary is on par with the market standard. By doing this, candidates will be looking for a role that meets these research-led expectations and will likely have an idea of what pay and perks package they would like to secure. The case we’ve seen time and time again over the last year is firms offering just shy of the candidate’s expectations and having zero wiggle room. They’re missing out on truly impressive talent because they’re coming up ever so slightly short.
We’ve previously talked about the impact of offering too low and here are a few things to consider that could make a candidate reject your job offer:
- Understand their value – Presenting a candidate with a job offer where the salary falls short of expectations or the market standard can leave a bad taste. Whilst it shouldn’t be taken personally, the salary ultimately reflects the person’s worth to the company and going low could suggest their skillset isn’t worth as much to your firm.
- Play the long game – Say you offer a candidate a lower salary than they expected but they accept it because they see it as a good opportunity for experience and development. This might seem like a win at the time, as your firm has secured talent at a lower rate. But, what happens in the months to come if the candidate is excelling in the role and starts to feel undervalued? Paying your staff below market rate often leads to a high turnover rate which, during a period where talent retention is critical, could have a big impact across the board.
- You’ve got to be in it to win it – Public practice accounting is a competitive recruitment landscape where there’s limited candidates on the market and firms are competing with one another to secure the best talent. The saying ‘you get what you pay for’ rings true in these circumstances, as offering a low salary will attract less qualified candidates. Highly skilled and experienced candidates will be seeking a salary that reflects and respects the work they’ve put in to building a progressive career in practice.
- Avoid the chaos of counteroffers – When offering too low, you’re opening up a window of opportunity for the candidate’s current firm to tempt them to stay. If the offer isn’t strong enough to make the career move worth the upheaval, candidates might settle for the ‘easy’ option of staying where they are. We urge firms not to make counteroffers and candidates not to accept them, due to the long-term impact it has for both sides, but some firms will try to hold onto the talent within their team and a candidate might be dazzled by the counteroffer. Don’t give them the opportunity to hold on to that top talent.
A negative interview experience
This is perhaps a less common possibility for why a candidate would turn down a job offer as we work closely with both the candidate and the firm to prepare both sides ahead of the interview. However, sometimes things just don’t go smoothly on the day and this can leave a lasting impression on the candidate. Sometimes people just don’t click or perhaps values don’t align. A job offer might be made because of a need for the skills the candidate offers, but ultimately it needs to be an all-round fit for both sides.
A lack of intent
When we take a step back from the actualities of the interview process and deciding whether to make a job offer or not, we can consider the bigger picture. Ultimately, the problem that is causing more and more candidates to reject offers is down to firms not truly showing their intent. Public practice accounting is currently still a candidate-driven market, and whilst this may shift as we progress through 2024, firms still need to fight for the best talent. Now is the time to show all of your cards to secure a candidate who can add real value to your team. From pay and perks to professional development and progression, career-driven candidates are looking for the full package. Firms that can deliver are coming out on top, but those not quite reaching the finish line need to step up their intent in 2024.
‘When trying to secure top talent, who dares wins. Firms that are truly showing their intent are snapping up talent and strengthening their teams in preparation for the 2024 silly season. Career-driven candidates aren’t settling for the first job offer that comes their way and are in a position where they can weigh up their options. Ensuring your firm looks attractive to potential talent is crucial and this includes the entire recruitment process.’ Garry Howling, Managing Director.
If you’re a forward-thinking firm that is keen to show your intent and secure candidates who can make a real difference to your team, we’re here to help. Whilst others might be wrapping things up ahead of Christmas, the team here at Public Practice Recruitment Ltd is still working full steam ahead. We’re representing some truly exceptional accountants, tax specialists, and seasoned auditors. Contact the team today.
