Why do senior leaders turn down job offers?

Why do senior leaders turn down job offers?

Recruiting a top tier executive in the current market is often a case of trying to catch a big fish in a small pond. The most capable and sought-after individuals are presented with more opportunities than they can manage, leaving them with insufficient time to navigate grueling, in-depth interview processes.

At Page Executive, we work with our clients to ensure there are few “no's”. However, we do see some processes that fall at the final hurdle, and hear of many others outside of our own searches.

After weeks or months of meetings, significant expenditures of money and time spent drawing the offer and consulting with lawyers, a rejection by the chosen candidate can naturally be very frustrating. So why do candidates say no?

Here are some of the most common reasons that I see executives turn down a job offer at the final phase.

The top reasons candidates say ‘no’

Interview experience. There are many ways that an interview experience can put off a candidate. It could be too slow, too fast, disorganised, or fail to provide enough feedback. Every touchpoint that the candidate has with the company is a glimpse into its culture, people and ways of working. Even seemingly small issues can be decisive.

Timing. The longer an executive role remains vacant, the more urgent it becomes to fill it. However, it’s important to get the timing of the offer right. Executive pay packages often feature annual bonuses, share pay outs, or long-term incentive plan payments, and candidates may want to resign after such payments. Failure to consider this, as well as other factors like long notice periods, can result in misaligned timings between employer and candidate.

The role is too similar. While there needs to be overlap and relevance between the candidate’s current role and the new role, too much similarity can end up discouraging them. The candidate may ask themselves: “Why should I take a risk without the opportunity for growth, challenges, or change?”

Inconsistent commitment to flexible working. Our recent Talent Trends survey showed that Managing Directors and Chief Executives in the UK feel overwhelmingly positively about remote and hybrid working. If the company’s policies around hybrid working change throughout the process, with the number of required in-office days rising between the initial discussion and the final offer, candidates may lose interest accordingly.

A low offer. Salaries are on the rise in the current hiring market, and employers who make offers below the market rate are likely to miss out on the best candidates. At Page Executive, we are seeing candidates leave their roles for pay increases of 9% on average, and it is exceedingly rare for someone to move backwards in salary for a new role. Employers should be sure to factor this in when budgeting for a role and making an offer.

Lack of vision. Sometimes we will see companies explain to the candidate the sorts of challenges they are facing and where they require help, but not share their wider vision or their longer-term strategy. For in-demand executives trying to make the best decision for their career, this doesn’t tend to inspire confidence.

A lack of connection. Many candidates who turn down offers from prospective new employers do so because they didn’t truly get to know the company. A three-interview long process, meeting the same person in the same room, often won’t be enough for a candidate to make such a big decision. They may feel that they haven’t been able to truly understand the company culture.

This is especially the case in processes with too many video interviews and not enough in-person meetings. Virtual interviewing has been a welcome innovation in recent years, but a totally virtual interview process isn't necessary and rarely secures a top tier candidate.

A counteroffer or alternative role. We are in a very competitive recruitment market and companies are working hard to cling onto their best people. In our experience, after accepting an offer and signing the contract, most candidates receive counter offers of higher salaries from their soon-to-be former employers. Similarly, many will have multiple offers on the table at the same time, making them more likely to turn down even strong offers.

Concern about volatility. With so much talk about an economic slowdown, candidates at all levels of seniority are worried about taking new jobs and being ‘last in first out’. Executive candidates are no exception, and many of the professionals we talk with have significant reservations around starting a new job with a short notice period, particularly in sectors or companies that are volatile.

How to stand out as an employer of choice

At Page Executive, we help a variety of organisations to stand out in a crowded market and make their opportunities more appealing to executives who are in high demand. Here are a few key success factors:

Location

Location is not the prohibiting factor it once was. For example, Unilever have announced that their employees can live anywhere they choose, as long as they can visit the office in person given 24 hours' notice. Essentially, this means employees can live almost anywhere in the world with reliable air travel, and the allowance even supports individuals who want to live in semi-remote locations.

The adoption of hybrid and remote working has had transformative repercussions for hiring. Organisations that expect senior leaders to work in person from the office for more than fifty percent of the working week are now losing some of their executives to other, more flexible employers - and are often also struggling to replace those people.

Interviews

The hiring process itself can influence candidates' willingness to engage with an opportunity. Long, intensive interviews are problematic in a tight hiring market. ?That’s why, at Page Executive, we are advising clients to condense their interview stages by having candidates meet multiple decision makers at once, and to remove demands like labour-intensive presentations if they are not essential.

Video interviews are a flexible option, but some candidates still want to meet face-to-face and see the office environment before they decide whether they are interested in a role. Working with your executive search partner, you can check if this is a priority and schedule it early in the recruitment process if necessary.

It’s also important to have a well-thought-out interviewing timeline, with possible dates already scheduled in the diary for first, second, and final interviews. This will reduce the likelihood of delays and enable candidates to plan and schedule around their work and personal commitments.

How hiring processes need to change

In this fast-moving executive recruitment market, there are several things you should focus on to optimise your hiring process. Here are some highly effective ways to attract top talent quickly:

1.??????Work with an exclusive search partner

Choose one trusted executive search partner and work with them exclusively. This approach will ensure that your partner is clear on your company culture, the role, and the ideal candidate you are searching for. It will also reduce search times and enable your partner to present each opportunity in the best possible light.

2.??????Be transparent about your company

Expecting candidates to research your company is reasonable, but it’s also important to be honest and open when providing information that will attract them to the role. Provide financial details, corporate strategy, challenges, and opportunities up front so the candidate is able to make a fully informed choice.

3.??????Make decisions quickly

Talented candidates are seeing interest from all sides. So, if you meet a candidate you like, provide quick and clear feedback at every stage. This is not a time to be coy about whether they meet the requirements for a role. In the worst cases, a delayed decision can be a red flag to the candidate, who may perceive it as a lack of leadership and could turn down the opportunity as a result.

4.??????Sell the role first

The dynamic of the executive recruitment market has shifted from "why should we hire you?" to "here’s why you should choose us". First and foremost, sell the opportunity using compelling candidate information packs, multimedia, and digital technologies. Also, sell the story of the company and the opportunity. Persuading candidates that they want the opportunity is a crucial step toward hiring the right person. After this is done, work with your search partner to assess their experience and capability for the role.

5.??????Offer compelling opportunities

Recruit in good faith. We would strongly discourage companies from using tactics like offering a competitive salary upfront and then attempting to renegotiate rates in the final contract. If basic salary is restricted by budget concerns, try to improve the overall offer with a ‘golden hello’, increased holiday allowances, long-term incentives, pension benefits, and even with your policies on flexible working, wellbeing offerings, and on-site facilities.

Don't make the mistake of assuming talented candidates are motivated primarily by financial remuneration, however. In many cases, the non-financial elements of a contract prove most influential in leading the candidate to sign.

6.??????Keep your options open

Finally, remember that no matter what you do, you will not always land the candidate you want most. To prepare for this, try and find two suitable candidates at offer stage so that you can hedge your bets. Equally, if you meet an ideal candidate but don't currently have a vacancy to fill, try to keep in contact with them. Ongoing open communication will help if you later find you have the perfect opportunity to offer to them.

Looking for executive talent?

The executive recruitment landscape is challenging at present, but you do not have to navigate it alone. For a long-term relationship with an executive recruitment consultant you can trust, contact Page Executive today, or get in touch on the details below.

https://www.pageexecutive.com/contact

Nicola Wensley, Partner, Page Executive

E: [email protected]