Why do executives turn down job offers?

Making an executive hire is time consuming and challenging. It might require weeks or months of meetings, significant expenditures of money, and much time spent drawing up the offer and consulting with lawyers.

After all this, 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 executives turn down job offers 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 18% 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.

What this means for employers

If you want to give yourself the best possible chances of securing the candidate you want at the end of a recruitment process, there are several different areas to focus on.

Ensure that the interview process leaves a positive impression and begins at the right time for both parties, whilst highlighting the opportunities on offer at your company, and the quality of the package. At the same time, remember that in such a candidate-driven market, competitors and even the individual’s current company may attempt to lure them away with superior offers. This requires continuous communication and active efforts to ensure that they are still engaged with the offer.

Looking for executive talent?

The executive recruitment landscape is challenging at present, but you don’t have to navigate it alone. For a long-term relationship with an executive recruitment consultant you can trust, contact Page Executive today.