Candidates receive fewer job offers in cooling market

A recent study by Gartner shows a significant decline in the number of job offers received by candidates in the third quarter of 2024.

According to the survey, which covered nearly 3,500 candidates from July through September 2024, 63% of respondents reported receiving a job offer during their most recent hiring process. This figure is down from 73% in October 2023.

The findings also indicated a decrease in the number of job offers candidates receive. The median number of offers received in 3Q24 was one, compared to three in the first quarter of 2023. Additionally, there was a decrease in the number of candidates backing out after accepting an offer. The percentage dropped to 33% in 3Q24, down from 49% in October 2023.

Fewer candidates believe they can find a better job after accepting a new position, with only 29% confident in this possibility, a decrease from 43% last year. Moreover, the percentage of candidates who find it easy to secure a job with their desired employee experience fell from 48% in July 2023 to 29% in September 2024.

Jamie Kohn, Senior Director in the Gartner HR practice, noted the shift in candidates' approach amidst a cooling job market. "Fewer candidates backing out after accepting a job means candidates are losing faith in the job market and can't be as selective as they were previously," Kohn said. "The job market is cooling, and as the market shifts, so do candidates' decision drivers. We're seeing candidates shift from prioritizing flexibility to prioritizing compensation and career prospects to better position themselves in an uncertain labor market."

When deciding to accept a job offer, candidates most often cited higher pay (52%) and more opportunities for career growth (49%) as primary reasons, followed by a better work-life balance (48%). Total rewards such as PTO/sick leave, health benefits, and parental leave were less often deciding factors.

Despite a focus on compensation, the overall pay increases for new employees plateaued in the second and third quarters of 2024 after a year of steady increases. Additionally, the percentage of candidates receiving a signing bonus decreased from 37% in 3Q23 to 23% this year.

Candidates making lateral moves experienced a 15% pay increase, a reduction from the 21% increase at the beginning of 2024, whereas those taking higher-level positions received a 29% pay increase.

Pay transparency has become a crucial factor, with 72% of candidates indicating they are more likely to apply for a job if the salary is mentioned in the job description. This trend marks an increase from 64% in the first quarter of 2023.

"Pay transparency legislation has greatly expanded candidates' access to pay information," Kohn said. "With compensation as a top decision driver, organizations should be clear about what they are willing to offer new hires and how offers are determined."