November 8, 2023
The recruitment process has taken a new form with online applications becoming the norm in today’s digital age. While this method offers convenience and accessibility, there's a critical challenge that employers face – high candidate drop-off rates. These rates refer to the discouraging number of potential applicants who abandon the application process before completion.
According to recent recruitment data, almost 96% of people who applied to jobs online didn’t finish their online application. This trend persists across industries, leaving many employers with reduced candidate pools and missed opportunities to secure top talents.
But what if there’s a solution that could not only address this issue but also make workplaces more appealing over time? Enter Clair, a digital banking app that helps you understand the importance of financial wellness. By partnering with Clair, employers can offer unique financial wellness benefits such as on-demand pay that could help transform their workplace into an irresistible destination for top talent.
Why is Candidate Drop Off Rate Important?
For hiring managers, it's crucial to understand the impact of candidate drop off rates on the overall success of your recruiting efforts. A high candidate drop off rate that goes unmonitored could lead to significant costs in terms of time, money, and effort and hinder success in attracting top talent
When candidates drop out of the hiring process, you’ll need to spend extra time and resources filtering through new applications, interviewing new candidates, and potentially extending the timeline for filling the role. Additionally, if high drop off rates become a trend, your brand may suffer, as candidates begin to perceive your company as a disorganized or unprofessional employer. This could lead to candidates taking less interest in your organization, a smaller pool of candidates, and may ultimately reduce your chances of attracting top-quality talent.
Ultimately, the candidate drop off rate can impact not only your immediate hiring needs but also your long-term success in attracting top talent to your organization. That's why it's essential to monitor this important metric closely and invest in solutions that drive engagement and interest in your company.
Causes of Candidate Drop Off Rate
Let’s take a look at the potential causes of high candidate drop off rates and see what you can do to reduce the risk of candidates dropping out of the recruiting process.
1. Sub-Par Job Descriptions
Job descriptions serve as a powerful tool in the recruiting process, playing a vital role in attracting top talent and inspiring candidates to follow through with an interview. A well-written job description can paint a compelling picture of the role and the opportunities it offers, capturing the attention and interest of potential candidates. It provides clear and accurate information about the position, outlining the responsibilities, qualifications, and expectations.
2. Poor or Complicated Interview Process
Keeping candidates engaged and motivated throughout the hiring process is key when it comes to recruiting top talent. It’s best practice to lay out exactly what the interview process looks like, giving prospective hires a clear understanding of what is expected of them and what they can expect in return.
3. Benefits Don't Align With Needs
Offering small benefits may help make a significant difference in employee satisfaction and engagement. While high-value employee benefits such as health insurance and retirement plans are highly valued, smaller benefits like financial wellness tools and resources can raise the bar even higher.
By partnering with Clair, employers now have creative ways to attract candidates by offering free on-demand pay, a financial wellness benefit that gives employees instant access to a portion of their earned wages before payday. Clair's on-demand pay is a great example of a perk that offers a small but impactful benefit to employees that could help them take control of their finances.
4. Delayed Responses
Prompt communication with applicants demonstrates your respect for the candidates' time and effort. Job seekers invest significant energy and resources into applying for positions, and a delay in communication could leave them feeling frustrated and undervalued.
5. Disconnect Between Hiring Manager & Applicant
Now that candidates have more choices than ever before, candidates are keen on how you connect with them. Disappointing interactions could impact a candidate's willingness to pursue your job posting, whether it's a lack of responsiveness or a disorganized and confusing hiring process, a negative experience could leave a lasting impression on a candidate.
6. Low Employer Brand Reputation
Your brand reputation is essentially your employer's image through the eyes of job seekers, employees, and the general public. It reflects how you treat your employees, how you communicate, and how fulfilling it is to work for your organization. As an employer, having a low employer brand reputation could significantly impact candidate drop-off rates, which could make it challenging to attract and retain top talent.
How to Improve Your Candidate Drop Off Rate
Now that we have a good understanding of the causes of candidate drop offs, we’ll walk you through several strategies you can implement to help improve your candidate drop off rate and keep candidates engaged throughout the hiring process.
Offer Financial Wellness Benefits
Offering financial wellness benefits could be an effective way to help improve the candidate drop off rate. By partnering with Clair, employers can offer their candidates and employees access to on-demand pay, and other financial education tools. This not only demonstrates your commitment to their financial well-being but also helps create a positive and engaging candidate experience.
Learn more about Clair's suite of financial wellness benefits that you can offer to entice candidates here.
Create Clear Next Steps
Clear communication and instructions are key to ensuring candidates know what steps to take in the application process. Employers should make it crystal clear how applicants should apply, whether it's through an online portal, email, or any other method. For example, you can provide clear directions like "click here to upload your resume" or "fill out the online application form linked below." Providing easy-to-follow instructions helps candidates understand how to proceed and reduces any confusion that may cause them to drop off.
Automate Communication As Much As Possible
The use of automation tools could help improve communication and transparency between hiring managers and applicants. Implementing a system that tracks the applicants' progress allows for automated email updates at each stage of the hiring process. Candidates could receive timely notifications about their application status, interview invitations, and other relevant information. Automation not only saves time and effort but could also help foster consistent and prompt communication, keeping candidates engaged and informed.
Write a Clear Job Description
Writing a clear and compelling job description is essential for attracting applicants. Here are a few pointers to keep in mind:
- Use a clear and concise title that accurately reflects the position.
- Provide an overview of the company, its mission, and culture to give candidates a sense of what it's like to work there.
- Clearly outline the responsibilities and requirements of the role, focusing on specific skills and qualifications.
- Highlight any unique benefits or opportunities associated with the position.
- Include specific instructions on how to apply, whether it's through an online application form or by emailing a resume and cover letter.
By following these pointers, you could create a job description that effectively communicates the role and attracts qualified candidates.
Implementing these strategies, such as offering financial wellness benefits, providing clear instructions, automating communication, and writing a clear job description, could significantly improve your candidate drop off rate and enhance the overall candidate experience. By prioritizing these areas, you could attract and retain top talent and build a positive employer brand.
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