Turndown

Definition: In a recruitment and hiring context, “turndown” refers to the rejection of a job offer by a candidate.

Common examples:

“We received a turndown from the candidate we offered the project manager position to last week.”

“Our turndown rate for this quarter has increased compared to the last.”

After going through the interview and selection process, when a candidate decides not to accept the job offer made by an employer, it is known as a turndown. This can happen for various reasons, such as the candidate receiving a more attractive offer from another company, dissatisfaction with the salary or benefits offered, concerns about the company culture or job fit, or personal reasons like relocation issues.

Turndowns are significant for employers as they can impact the hiring timeline and the cost of recruitment. It also necessitates re-evaluating the remaining candidate pool or restarting the recruitment process to fill the position, which can be time-consuming and resource-intensive. Therefore, understanding and managing the turndown rate is important for effective talent acquisition strategies.

What is an acceptable turndown rate?

Determining an “acceptable” turndown rate can be subjective and varies depending on the industry, the role, and the labor market conditions.

However, in general, a lower turndown rate is usually preferable, as it indicates that more candidates are accepting job offers.

In many industries, a turndown rate of 10% to 15% is considered acceptable. This means that out of every 10 job offers made, 1 to 1.5 are declined by candidates.

It’s essential for organizations to benchmark their turndown rates against industry standards and continually strive to improve their recruitment and offer processes to maintain a healthy rate. Regularly soliciting feedback from candidates who decline offers can also provide valuable insights for reducing future turndowns.

Reasons for turndowns

1. Compensation and Benefits: One of the most common reasons for a turndown is when the offered salary and benefits package does not meet the candidate’s expectations or is not competitive with what other employers in the market offer.
2. Better Offer Elsewhere: Candidates may decline an offer if they have multiple offers on the table and choose to accept one that they perceive as more favorable, whether in terms of compensation, job role, company reputation, or growth opportunities.
3. Job Misalignment: Sometimes, candidates realize that the job role and responsibilities do not align with their career aspirations, skills, or interests. This misalignment can become apparent late in the recruitment process as more details about the position are revealed.
4. Work-Life Balance Concerns: If candidates feel that the job might not offer a desirable balance between work and personal life, they may turn down the offer. This includes concerns about work hours, flexibility, remote work opportunities, and leave policies.
5. Company Culture: A candidate might decline an offer if they perceive that the company’s culture, values, or work environment do not align with their personal values or expectations.
6. Location and Relocation Issues: The geographical location of the job can be a significant factor, especially if it requires relocation. Candidates may decline offers due to the undesirability of the location, high cost of living, or personal and family reasons.
7. Career Advancement Opportunities: Lack of clear career progression or development opportunities within the company can lead candidates to reject an offer, especially if they prioritize long-term career growth.
8. Negative Reviews or Company Reputation: In the age of social media and employer review sites, candidates can access a wealth of company information. Negative reviews or poor company reputation can be a deterrent.
9. Organizational Instability: Perceptions of financial instability, frequent leadership changes, or high employee turnover within the company can also lead to turndowns.
10. Personal Reasons: These can range from health issues to family commitments or any other personal circumstances that might affect a candidate’s ability to accept a job offer.
11. Counteroffer from Current Employer: Sometimes, upon resigning, candidates receive a counteroffer from their current employer with better terms, which can lead them to retract their acceptance of a new job.

Impact on recruitment

1. Cost Implications: Each turndown can potentially extend the recruitment cycle and increase hiring costs.
2. Reassessment of Candidates: Turndowns often lead to revisiting the pool of interviewed candidates or sourcing new candidates altogether.
3. Analysis for Improvement: A high rate of turndowns may prompt a company to review and improve their offer strategies, benefits package, or recruitment process.

Strategies to minimize turndowns

1. Competitive Offers: Ensuring the compensation package is competitive and aligns with industry standards.
2. Clear Communication: Articulating role expectations and company culture clearly during the interview process.
3. Candidate Engagement: Maintaining consistent communication and engagement with candidates throughout the recruitment process.
4. Feedback Loop: Gathering feedback from declined candidates to identify patterns or areas for improvement.

FAQ

Should employers ask for feedback after a turndown?

Yes, asking for feedback after a turndown is beneficial. It can provide insights into why the offer was declined and help identify areas for improvement in the recruitment process or offer package.

What impact do turndowns have on a company’s recruitment strategy?

Frequent turndowns can lengthen the time to fill a position and increase recruitment costs. They may also indicate issues in the employer’s value proposition or recruitment process that need to be addressed.

Can improving the candidate experience reduce turndowns?

Yes, improving the candidate experience can reduce turndowns. A positive recruitment experience can influence a candidate’s perception of the company and make an offer more appealing.

How important is the role of employer branding in preventing turndowns?

Employer branding plays a significant role in preventing turndowns. A strong employer brand can attract candidates who are a better cultural and motivational fit, thereby reducing the likelihood of offer rejections.

Should a company revisit previous candidates after a turndown?

Revisiting previous candidates can be a practical strategy, especially if they were strong contenders. However, it’s important to approach them thoughtfully and ensure the role aligns with their career goals and expectations.

How do turndowns affect an organization’s talent pool?

Frequent turndowns might suggest to potential candidates in the talent pool that there may be underlying issues with the organization, possibly affecting its attractiveness as an employer.

Are there any specific industries or roles with higher turndown rates?

Turndown rates can vary by industry and role, often higher in competitive markets or for positions requiring highly specialized skills where candidates may have multiple offers.