The talent shortage situation in Singapore is putting employers at greater risk of candidates dropping out during the recruitment process, says a study.
Almost one in four candidates (23.2%) have withdrawn from the hiring process, while more than a quarter of employees (25.2%) are willing to reject signed offers, according to Hudson’s Salary & Employment Insights 2013.
Employers described candidate withdrawal as costly and frustrating. They also expressed concern about the extended vacancy adversely affecting the productivity and morale of the existing team.
More than one-quarter (26.8%) of employers reported that these withdrawals are occurring between the application and first interview.
On a more worrying note, almost half of respondents (42.9%) have experienced candidates withdrawing after an offer has been made. The top reason for this is due to salary not meeting expectations, followed by better offers made by other companies, and the belief that the employer had misrepresented the role.
“Having a conversation up front around salaries and the ability for negotiation (or lack thereof) can reduce the time and effort invested by both parties if a positive outcome is unlikely. If candidates are aware of the salary range throughout the process they are less likely to become disappointed and withdraw their application,” said Andrew Tomich, Executive General Manager, Hudson Singapore.
He added that in a talent-short market, companies need to ensure that the compensation they offer is consistent with market rates and that the remuneration reflects the importance of the role to the organisation.
In the report, Hudson highlighted three key areas where employers need to focus to address candidate withdrawal: reducing and tightening the hiring process, committing to two-way communication with candidates and being honest with potential employees about salary, benefits and other advantages of working with the company.
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