Extending a job offer to a candidate only to have them decline at the last minute is frustrating.
But if job candidates are consistently declining your offers, you probably have more serious issues with your hiring procedure.
Considering that the average cost of a hire for recruiters is $4,129, the cost of getting all the way to the offer stage and then having to restart the hiring process can be significant.
Monitoring your offer acceptance rate is one way to determine where things may be going well or poorly.
This article will go over offer acceptance rates and how to calculate them, giving you the knowledge you need to hire more of your top candidates.
How to calculate your offer acceptance rate
Calculating your offer acceptance rate is fairly simple. Divide the number of offers your company made by the number of offers it received. Include only final offers made externally in the majority of cases, but the most crucial thing is to maintain consistency in what you are including to prevent your data from being skewed. Most businesses should calculate their offer acceptance rate annually, but if you work for a large company, you may find that performing the calculation quarterly or monthly is more efficient.
Of all your recruiting metrics, your offer acceptance rate should be one of the highest – over 90% in most industries. Benchmarking your offer acceptance rate is best done based on your own data. Offer acceptance rate varies based on industry as well as what you include in your calculation. As you audit your recruiting workflow, look for fluctuations in your calculation – if your offer acceptance rate does slip, there are several things you can do to increase it.
How to increase your offer acceptance rate
The first step in increasing your offer acceptance rate is to ensure that your offer is competitive with others in your industry. The competitive nature of the modern workforce means that employers now have access to a wider pool of potential hires because they are no longer restricted to those with the ability to relocate or commute within a reasonable distance.
Your offer goes beyond just salary, though that is undoubtedly significant. Along with factors like flexible scheduling and office culture, it also includes additional perks like health care and time off. An effective job offer is well-rounded.
Finding comparable job postings on job sites like Indeed and Monster is probably the simplest way to research job offer standards in your industry. Although many job postings will have the salary information because it is a good practice when writing a job description, some may not. Including your salary offer in your job description could increase the number of candidates who accept it because they won’t be surprised.
Pitch the job to the candidate
The majority of job applicants will have submitted more than one application, and just as you are evaluating a number of applicants for the position, they are also considering a number of positions. Sell a candidate on why your company is the best choice for them if you have a strong feeling about them.
Learn about your candidates during the interview process, including their interests, the qualities they are seeking in a job, and, most importantly, what drives them. Knowing this information about the candidate allows you to customize your offer to meet their needs, which will increase its appeal and increase the likelihood that they will accept it.
Conduct a survey
The most accurate information comes from firsthand sources, and surveys are a great way to take advantage of squandered opportunities if you have enough candidates for a sufficient sample size. Make a quick survey to send to applicants who decline your offer. The survey shouldn’t take too long; limit it to just asking that one question or ask a few additional questions about the overall candidate experience. Modifying your applicant exit survey is one quick way to make a survey. For the best response rate, send the survey out as soon as you hear about the job offer.
In this situation, you can be direct and inquire of candidates as to what caused them to reject the offer. The candidate has the freedom to be honest because they are no longer being considered by your company. The most crucial thing is to keep the survey straightforward however you decide to conduct it in order to get as many responses as possible.
Get creative with your job sourcing
Hiring managers frequently make the mistake of believing that a candidate must satisfy each requirement they have created. Due to their perceived lack of experience, non-traditional candidates end up being undervalued and overlooked. But the right job fit depends on much more than just experience and technical skills.
Fortunately, soft skills outperform hard skills as a predictor of success. You can find motivated candidates from all backgrounds by focusing on soft skills when hiring and using appropriate evaluation techniques, which will increase your talent pool. Pre-Hire Assessments, for example, can help you screen candidates for job fit at the beginning of the hiring process so you can be sure they will succeed in their position.
Have the manager reach out to the candidate personally
“The old adage – people don’t quit jobs, they quit managers could ring true in this case as well; people don’t accept jobs, they accept managers, and culture as well,” says Jen Rifkin, Director of Customer Success at Cangrade. “Having the manager make contact with the candidate lets them know they’re wanted on the team; the HR team isn’t just filling a position as part of their duties.” The manager can also discuss the corporate culture and that of their immediate team.
The level of talent in your organization and your overall talent brand can both benefit greatly from increasing your offer acceptance rate. You can focus on other aspects of the recruitment process to increase your talent as you start to increase your offer acceptance rate. Check out our advice on how to continuously assess and enhance your candidate experience.
How Recruiters Can Calculate Staffing Bill Rates
Why do we measure offer acceptance rate?
The offer acceptance rate (OAR) indicates the proportion of applicants who accepted your job offer. The attractiveness and competitiveness of your job offers are indicated by this metric. Your team won’t hire the candidates they want if your OAR starts to decline.
How does learning about the recruitment process benefit you?
Recruitment is an important part of a business’s HR activities. You can improve your recruiting abilities and make a decision about whether you want to pursue a career in recruitment by learning more about it.
What can you learn from being a recruiter?
- # 1 – You will never be able to satisfy everyone.
- # 2 – You need to be quick. …
- # 3 – Not everyone is reliable. …
- # 4 – Not just the first impression matters. …
- # 5 – It teaches you important things about life.
- # 6 – It’s a target driven environment.
What are the most important things that a US IT recruiter should know?
- 1) Ask for help. Yes, of course! …
- 2) Learn from your candidates. …
- 3) Join a social tech group. …
- 5) Broaden your horizon. …
- 6) Strong sales skills. …
- 7) Relationship building. …
- 8) Hunter’s mentality. …
- 9) Strong follow-up skills.