Something’s going on in the world of recruiting. Thanks to the ever-increasing pressure recruiters are feeling to hire top talent in an ultra-competitive marketplace, HR departments and employers are starting to use a sneaky tactic to get people to come work for them. This tactic, “The Exploding Offer”, is amazingly high-pressure, somewhat volatile, and primed to change the face of recruiting forever. Here’s what you need to know:
What is the Exploding Offer?
An exploding offer is when a HR department or manager offers a would-be employee a job, but gives them an incredibly short period of time (24 or 48 hours, usually) to accept it. The exploding offer serves two purposes. First of all, it makes the job feel scarce (the employee thinks, “If I don’t take this right now, someone else will!”), which drives employees to leap when they might otherwise take some time to think about it. Secondly, it pushes disinterested employees through more rapidly, which helps the employer save time and money.
The Cons of the Exploding Offer
While the exploding offer may seem like a good idea for employers, it’s highly likely to backfire. Here’s why:
- Employee/manager relationships begin on a bad foot. Studies have shown that, when a manager begins a working relationship with an employee who is already under duress, higher turnover rates
- Employees begin to distrust the company. Companies that are high-pressure from the get-go don’t send a good message to would-be employees. In addition to the fact that this approach feels rushed and doesn’t allow the employee the time he or she may need to think the offer over and negotiate the terms, exploding offers also send the message to employees that they are highly disposable. I.e. “If you don’t take this job, we’ve got five people lined up who will.” This can contribute to feelings of resentment and bitterness in employees, which leads to poor work performance and satisfaction down the road.
- Exploding offers damage a brand. Exploding offers are really one thing – desperate. Today’s candidates are willing to openly shame companies that don’t employ good hiring or employment practices and companies that use the exploding offer are especially prone. In addition to coming off as desperate, exploding offers also lead employees to regard a company as pushy, which isn’t good for brand identity.
The Future of Recruiting: Exploding Offers Should be on the Way Out
While the exploding offer has been around for quite some time, there’s no doubt about the fact that it doesn’t work in today’s hiring environment. While companies who use the exploding offer are simply trying to trap great talent, hiring in today’s market is all about great offers, low-pressure environments, and building good relationships with genuinely good employees.
To learn more about recruiting or for details on how you or your company can improve your recruiting strategy, contact Crawford Thomas today!