Despite moving away from the candidate-driven market we experienced in 2021 and early 2022, candidates today are unwavering in their liberal attitude toward reneges. In fact, some may be even more likely to rescind their offers this year.
In a recent report on Diversity in the Workplace, we surveyed more than 2,600 juniors and seniors ahead of the fall 2022-23 recruiting season to determine how today’s talent is approaching the new recruitment landscape. That includes how candidates’ attitudes have changed as the labor market has shifted, and the reasons they would rescind an offer this year.
Read on for some of the highlights on this topic, and download the full report to delve into other aspects of the job search and hiring process, such as candidates experience, preferences for where candidates work, and company D&I policies here.
Candidates’ willingness to back out of their offers is not impacted by the economic climate
When we surveyed candidates in March 2022 about whether they have or would renege, we found that while just 20% had rescinded an offer for a more attractive opportunity, a strong majority said they would renege in theory. Specifically, we found that 62% of internship candidates and 73% of full-time job seekers would back out of an offer if a superior one came along before their start date.
The data from our August 2022 survey shows that despite differences in the economic climate, that liberal attitude has either remained the same, or grown. Specifically, we found that the same percentage of full-time job seekers from March and August would renege, while the percentage of internship candidates that would renege grew to 75%.
Compensation and career fit remain the top reasons for reneges across all candidates
Acknowledging that candidates today remain unafraid to back out of their offers is critical for talent teams drafting or reevaluating their nurture strategies to keep accepted candidates warm. But what are the top reasons that your candidate may abandon their role?
We found that the top reason that candidates today would renege is a higher salary (and tied with a career fit for internship seekers). This a break from our March 2022 survey, in which around 80% of all candidates said that their top reason for rescinding an offer would be for career fit. Similar to our March survey, we found that female candidates are more likely to renege over flexibility (60% of women compared to 49% of men), and company culture matters much more to full-time candidates when considering reneging. To prevent reneges, talent teams should be sure to discuss salary expectations and long-term career goals with candidates during the hiring process.
Note: This graph has been cropped. You can find the full list of reasons for reneges here.
Women of color are the most likely to renege over salary
We also found that Black and Hispanic female candidates are much more likely than White and Asian women to admit that they would rescind an offer if another role came with a higher salary — with Black women being especially concerned over compensation. Specifically, while 74% of Black women and 68% of Hispanic women would rescind an offer if another position had a higher pay, only 65% of Asian women and 64% of White women agreed. To retain diverse hires in today’s market, it’s especially important to ensure that your offers are competitive.
Note: This graph has been cropped. You can find the full list of reasons for reneges here.
Despite a shifting and murky economic climate keeping talent teams on their toes, candidates are steadfast in their approach to the job search process. With that in mind, it’s important that you leverage the data behind the top reasons talent might break their contract with you to strengthen your strategies for attracting and retaining top talent — and that you are prepared to offer competitive salaries and demonstrate a clear path for growth within your organization.
Want to learn more about the talent entering the workforce today — including traditionally underrepresented candidates? Download our full report here.
