Is the Stay Economy Hindering Your Ability to Sign Top Talent?

By Lyn Currie, Managing Director, Executive Search

It wasn’t all that long ago that recruiters, including the executive search experts at Waterstone, were helping clients manage their recruitment strategy through the Great Resignation – trying to mitigate the loss of top talent while competing for high-performance leaders in a climate of increasing salaries, maximum flexibility, and dynamic employee benefits.

But times have changed. An uncertain economy, high inflation, and fewer open roles, means that many candidates are choosing to stay with the job they know over the risk of moving to a new company and a new opportunity. In fact, 82% of hiring managers say they noticed an increase in candidates turning down job offers in 2024 – a frustrating outcome for organizations that have invested time and resources into talent acquisition, especially for senior level roles.

So, what can you do to stay ahead of the stay economy?

1. Lean on your purpose and value proposition.

A 2020 survey by McKinsey & Company found that a clear purpose is important to employees (82%) and that people want their employer to provide more opportunities for purpose in their day-to-day work (63%). Putting your purpose front and center in your recruitment efforts, and having a clear and compelling EVP can help your team sell the organization to potential candidates – especially if you’re able to make connections between your organization’s purpose and the purpose or values of your top candidate(s).

2. Understand the candidate’s pain points

If the candidate is focused on the risk of changing jobs, they may not be fully considering all the short and long-term opportunities that come with a new role. Whether it’s a salary bump or title bump, the chance to lead a new or larger team, the opportunity to build something new, or something else, understanding what the candidate’s concerns are will help you highlight the gains that are available to them.

3. Take an agile, personalized approach to the offer

Understanding what drives a candidate can help you personalize the offer and showcase your people-focused culture.  An offer that aligns with your company’s existing policies and strategies, but which also accommodates some of the candidate’s “must haves” (e.g., salary expectation, title, development opportunities) and “nice-to-haves” (e.g., extended benefits, flexible hours, unlimited vacation) can be a difference maker. Ensuring everyone on the team understands what elements of an offer are up for discussion and which aren’t can also help facilitate quick response times when it comes to negotiations.

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At Waterstone, we help organizations build better leaders, better cultures, and better results – in any type of economy. If you’re struggling to achieve your people and culture goals, or need help getting candidates over the finish line, schedule a call with our team today.