Earlier this year, Alex Ugarte, operations manager at workspace brokerage London Office Space, was preparing a contract for the company’s latest new recruit.
After reviewing multiple applicants and doing several rounds of interviews, a signature was all that was needed to confirm the employment of their preferred candidate. But days passed and, despite calling and sending emails, voicemail messages and texts, there was no response from the candidate and the contract was left unsigned.
Although there were some “warning signs”, such as delayed responses between interview rounds and hesitancy about the start date, Ugarte did not expect the candidate to ghost him. “It was frustrating because we were left scrambling to cover the workload we’d allocated to them,” he says.
What is ghosting?
Many hiring managers will be familiar with Ugarte’s plight as the number of employers being ghosted by candidates is on the rise. More than a quarter (27%) of businesses have had new hires fail to turn up on the first day of work, according to the Chartered Institute of Personnel and Development’s (CIPD) Resourcing and talent planning report 2024.
Ugarte notes how the experience of being ghosted impacted team morale and productivity. “The onboarding team had put a lot of effort into preparing for their arrival,” he says. “It set us back a few weeks and made the next onboarding process feel more guarded.”
Candidate ghosting can also have significant financial consequences for businesses. Tina Rahman, founder of HR consultancy HR Habitat, estimates that applicant no-shows can cost her clients an average of £10,000 in recruiter costs and management time.
Why is ghosting on the rise?
Rahman believes that this issue is becoming more prevalent due to poor employer branding, unattractive benefits and a growing disconnect between recruitment firms and their clients. “Recruiters need to be getting as much information as they can from the hiring company about what’s required,” she says.
When candidates have interviews booked in with multiple organisations, they will only attend the ones they think are most attractive – “not just in terms of pay but the entire package”, Rahman warns.
Candidates are applying widely and hedging their bets in terms of which offer they take up
Claire McCartney, policy and practice manager at the CIPD, adds that a poor candidate experience during the selection process and a lack of connection to the hiring company’s purpose may also be to blame. Meanwhile, the shift to remote working and the use of video interviews has put more distance between candidates and employers.
“Even though the labour market has loosened, it’s still competitive,” she says. “Organisations are grappling with skills shortages, so candidates are applying widely and hedging their bets in terms of which offer they take up.”
How can employers improve the candidate experience?
Employers need to review their recruitment processes in order to avoid becoming a victim of employee ghosting. McCartney advises that companies make the organisation’s values and the requirements of the role clear when advertising open positions.
“Purpose is often a key driver for people wanting to work for an organisation,” McCartney explains. “People want to do work that’s meaningful, so it’s helpful to put this in your job adverts.”
People expect a lot more from their employer nowadays
Communication is important to keep candidates engaged, while lengthy recruitment processes risk putting candidates off. “If you can reach out to people before they start and keep them warm, that can help prevent any no-shows on day one,” McCartney adds.
Employer branding is also key to making a good first impression. “Businesses need to share stories about what they do to position them as an attractive employer,” says Emma Cromarty, director of HR consultancy EC Human Resources.
Offering a competitive pay and benefits package and providing flexible working opportunities were the two most common methods used to improve employer brand, according to the CIPD. “People expect a lot more from their employer nowadays,” Cromarty adds. “If your business has not done an employee benefits review in the past five years, you seriously need to think about it as the landscape has changed since Covid.”
Retention problems
Even when employers are successful in getting candidates to attend their first day of work, new starters can remain a flight risk. Four in 10 (41%) employers surveyed by the CIPD have had new recruits resign within their first 12 weeks of employment.
While the recruitment process is less likely to be the cause of this issue, it may indicate that new hires feel unsupported or that the role was mis-sold. Offering structured support throughout the induction process and providing recruits with sufficient information to navigate the new organisation and their role is key, McCartney says.
“Organisations need to train their managers in people skills, so they know how to get the best out of new starters and can support them and their wellbeing,” she says. “Offering opportunities for development and progression is also important, so people see a long-term future with the organisation and understand how it can help them fulfil their career aspirations.”
For Ugarte, frequent communication with candidates and offering flexibility around start dates has helped reduce no-shows. London Office Space also sends new starters welcome packs, which include introductions to the team, the office culture and recommendations for local lunch spots.
“Being accommodating can prevent drop-offs,” he says. “The aim is to make candidates feel valued and invested in before they even step foot in the office.”
The growing number of people leaving roles in these early stages of employment – and in some cases before employment has even begun – highlights the importance of creating a good first impression. By improving engagement and reviewing the recruitment process, businesses can exorcise their employee ghosts.
