Withdrawing Candidates: Reasons Why & How to Mitigate Risk

A recent Gartner HR survey has highlighted substantial challenges in talent retention, revealing that within a 12-month period, 50% of candidates accepting job offers withdrew before their scheduled start dates. As we step into 2024, despite a slight easing in the scarcity of candidates, the competition for top talent remains intense, particularly within the accounting sector as seen at Lawson Delaney.

Motivations behind candidates’ decisions

The survey, conducted in May 2023 with nearly 3,500 participants, sheds light on key factors influencing candidates’ decisions. The top drivers for accepting a new job offer included:

• Greater flexibility (59%)
• Improved work-life balance (45%)
• Higher compensation (40%)

Notably, more than one-third of candidates received four or more job offers during their last job search.

Uncommitted candidates

Of the nearly 2,000 candidates who recently accepted offers, 47% admitted to remaining open to other job offers, while 42% believed they could find better opportunities by continuing their job search. This reveals a significant portion of candidates remaining uncommitted to their new employers, essentially engaging in “quiet quitting” shortly after starting a new job, which we also see reflected in the accounting market. 

Misalignment in Employee Value Proposition (EVP) preferences

The survey found that almost 90% of candidates exited a hiring process due to at least one mismatch in EVP preferences. Beyond compensation and benefits, factors such as flexibility in working hours, career pathing, skills development, team diversity, and management style played crucial roles in accounting candidates’ decision-making.

Salary transparency and remote work preferences

A noteworthy 68% of candidates expect to see salary information in job postings, and 64% are more likely to apply to jobs that include compensation details. The lack of salary information led 44% of candidates to decide against applying for a job within the surveyed 12-month period.

Regarding the ongoing trend of remote work, 75% of candidates with remote work capabilities prefer working remotely more than 50% of the time. This aligns with the broader trend, as the Gartner survey revealed that 47% of employees actively seeking new jobs were doing so to attain greater flexibility.

Conclusion

The Gartner survey underscores the complexities in talent acquisition and retention, emphasising the importance of understanding accounting candidates’ evolving preferences and priorities. To navigate this competitive landscape successfully, Lawson Delaney encourages accounting firms to prioritise factors like flexibility, work-life balance, and pay transparency, recognising that accounting candidates are increasingly discerning and may remain open to alternative opportunities even after accepting a job offer. Creating welcoming onboarding experiences and offering clear progression pathways are additional strategies to mitigate these challenges.

If your accounting practice is grappling with talent attraction or retention challenges, our team at Lawson Delaney is here to assist across hiring, employee coaching, and other people strategies. Please contact us on 03 9946 7300 or support@lawsondelaney.com.au

Lawson Delaney is a leading executive search and professional recruitment firm based in Melbourne. We specialise in recruiting CEOs and leadership teams, and accountants of all seniorities for Accounting firms.