Why the Job Offer Stage Matters More Than You Think
Constructing an effective job offer is an often overlooked piece of the hiring process. As a recruiter in most organizations, there is only so much leeway you have to tweak the offer. Issues of fairness and equity are often involved and when it comes to compensation, there are typically a lot of stakeholders in that conversation.
Despite this lack of full control, like all things related to candidate experience, data can be your friend when you want to improve this step of the hiring process.
Wouldn’t it be helpful to know why every job offer is accepted or rejected and be able to use that data to adjust future offers? If you know why candidates accept and why they decline, you have the ingredients to improve your offer acceptance rate, reduce your cost per hire, and increase your quality of hire.
Real-Time Feedback Helps Improve Offer Strategy
At Survale, our clients typically monitor feedback on all accepted and rejected offers. And they do it in real time so they can track these key hiring signals and check the results of their strategy.
So we know a thing or two about why candidates accept or reject offers, and it’s very consistent from client to client, industry to industry. But before we talk about the key factors for an effective job offer, let’s explore why job offer feedback is so important.
Why Job Offer Feedback Matters
At the offer stage, you’ve taken candidates through a thorough and often time-consuming hiring process. That’s an expensive step. But you wouldn’t invest all that time unless you had candidates that you believe can make an impact. At the same time, finding those candidates is a long process with real costs tied to it. There are job ad fees, tools, recruiter time, and more.
SHRM’s average cost per hire of about $4,425 is a starting point, but that doesn’t include lost time or hidden costs. If you don’t already track your cost per hire, expect it to be much higher, depending on the role.
The bottom line is that a rejected offer is costly. At this point, you’ve spent most of your hiring budget, and starting over again will be even more expensive. Rejected offers delay hiring. The time it takes to reach out again, re-engage past candidates, or reopen a search takes a toll. Hiring a second or third choice candidate could also mean lower performance. And the longer a position remains open, the team loses productivity.
In short, a declined offer can undo a lot of good work.
Knowing why candidates accept or reject offers can help improve cost per hire, time to hire, quality of hire, and more.
Key Reasons Why Candidates Accept or Decline Offers
What Makes Candidates Say Yes
So what is the consistent factor we see affecting offer acceptance rates? It’s opportunity for advancement. This is the most common reason candidates accept jobs. And this trend shows up across all industries and roles.
What Makes Candidates Say No
Actually, there are two common reasons that shape the offer decision. Candidates accept because they see room to grow, and they decline mostly due to compensation.
The fact is that pay is always there in offer decisions. It’s more likely to show up when things go wrong. But that doesn’t mean you need to offer higher pay just to win more acceptances.
The two charts shared below show one company’s reasons for acceptance and rejection. Candidates accepted offers because they saw a future with the employer. And those who rejected offers mostly pointed to compensation.
But here’s the key point. This company made 665 hires and only 69 offers were declined. And only 30 of those said it was because of pay.
Compare that to the 665 who accepted. Of those, 540 cited growth as a reason.
This shows that the company already has a working system for high acceptance rates.
A small raise may have helped 5 percent of the candidates. But for 95 percent, the offer worked well because of growth.
How to Strengthen Offers Before You Extend Them
Position Advancement as a Core Message Early On
This company does well because they focus on growth from the start. They sell candidates on the role, the team, and the chance to move forward. And they do this through every step, from job post to final offer.
That’s why job offers don’t just begin at the end of hiring. If you don’t highlight your company’s strengths throughout the process, you’ll need to offer more money to convince top candidates at the last moment.
Use Feedback to Shape Future Offers
Start by learning what your candidates care about most. Then make sure those things show up in every job post, email, recruiter call, and career page.
We’ve shared a simple truth. Candidates accept for growth. They decline for pay. That message needs to show up from start to finish.
If growth only shows up in the offer letter, it’s too late. By that point, your costs are already high, and your best candidates may be looking elsewhere.
Make sure your offer process highlights opportunity for advancement. Use real-time feedback tools to track how well your process supports what candidates value. This will help you write better offer letters and reduce future hiring costs.
Final Thought: Align Hiring Strategy with Candidate Priorities
At Survale, we see what works for our clients and what doesn’t. We also know that each company is different. What works for one team might not work for another. That’s why feedback matters.
Track what candidates say. Use that data. Improve your offers. And bring in the right people faster.
FAQs
What should job offers include?
Key elements include job title, duties, salary, benefits, and reporting structure.
What are three things to consider when you are offered a job?
Think about job responsibilities, opportunity for growth, and total compensation.
What should be included in an offer?
Include clear job details, benefits, start date, and who the role reports to.
What not to include in a job offer letter?
Avoid vague terms, unclear timelines, or promises you can’t keep.
