Hiring is a time-consuming process that impacts productivity and revenue. This is especially true for executive hiring. The cost of getting an executive hire wrong can reach seven or even eight figures at large organizations. Hiring decisions are not taken lightly. Finding the right culture fit is difficult enough, so when HR teams start to see good candidates dropping out of the hiring process, that is an immediate red flag.
A recent article from Dr. John Sullivan caught our attention. He has researched and written on the topic previously, and his new article notes that the highest dropout rate for candidates in the hiring process is at the interview stage. With a 25% dropout rate, the percentage is higher because fewer people reach that stage. On the other hand, those are the most qualified candidates, so each dropout carries more significance.
Half of the companies from the research also stated that their hiring process is the reason a quality candidate dropped out. As he notes, this is preventable by addressing the process, and he offers several suggestions to improve candidate retention.
Automate Reminder Notifications
This is a best practice that can be adopted from the healthcare field. When you have a doctor’s appointment, you will likely get a call, text, or email to remind you. Set up the same process for your search process.
Offer Online Interview Options
People are busy, and this is especially true when hiring for senior-level roles, which are often attractive to passive candidates who may find it difficult to get away for an in-person interview. Video tools like Zoom can facilitate the process.
Use Technology to Personalize the Experience
Job seekers have become accustomed to standardized responses from companies. New technologies have made it simple and easy to provide personalized communications. This level of attention can make the difference in a candidate feeling valued and important.
Schedule Interviews on the Same Day
When the candidate is speaking to multiple people, do your best to keep the schedule as tight as possible and avoid spreading out interviews over multiple days. You’ll need to accommodate their schedule, but the longer the process, the more likely they are to drop out.
Be Open on Salary
The perception that the salary will be below their expectation is the number one negative survey response at nearly 30%. Be considerate and honest about the salary range, and if there are options for other forms of compensation, such as bonuses, commissions, equity, and stock options.
Consider Automated Interview Scheduling
As most candidates are employed, it can be complex and time-consuming to figure out a time that works for both parties. Online self-scheduling options can eliminate candidate frustration by finding times that work with their schedule.
Don’t Wait to Make an Offer
Slow hiring processes can indicate to candidates that the company is inefficient in its decision-making or that they are waiting to see if another candidate is better. In either case, a strong candidate will likely drop out. Make sure everyone is aware of the hiring timeline and don’t allow gaps with candidates. At a minimum, stay in contact and provide regular updates.
For additional suggestions from Dr. Sullivan, we highly recommend reading the full article.
It’s important to remember that the interview process is often a person’s first impression of the organization. By putting your best foot forward and treating each candidate with respect, you can reduce the number of dropouts in your process and maintain a positive relationship that may serve you well in the future.
For help creating a strong candidate-focused hiring process, send us a note, and one of our executive search consultants will follow up with you.