India sees 20% rise in CXO candidate dropouts

Headhunters in India are facing a growing challenge with CXO candidates backing out after accepting job offers. This issue, previously common among lower-level positions, is now affecting top corporate roles. Recruiters say this is happening more frequently because companies are looking for talent across various sectors, leading to several job offers for the same candidates. Experts from recruitment firms are noting that “one out of four” candidates now drop out before starting a new job. Headhunters like Suresh Raina from Heidrick & Struggles say they have to check with candidates about other job offers during the interview process to avoid last-minute withdrawals. The lengthy recruitment process can be frustrating for companies. When a candidate drops out, the entire search must restart, delaying business plans. Additionally, headhunters only get paid when a candidate successfully joins and stays for a minimum time. Kraswin Saboo from Korn Ferry points out that CXOs in India have more job options compared to those in the US and Europe, leading to many candidates weighing multiple offers. Headhunters are adapting by staying in close contact with candidates. Instances have occurred where candidates backed out due to family emergencies, only for recruiters to discover their current employers matched the job offer. Jyoti Bowen Nath from Claricent Partners reports a 20% increase in dropouts this fiscal year, often due to relocation issues or health concerns. Since the COVID-19 pandemic, the competition for talent has intensified. Many companies began offering significantly higher salaries to attract the right candidates. However, when CXO candidates withdraw after accepting offers, it complicates recruitment even more. Sudarshan from EMA Partners highlights that the process is lengthy, with many interviews and negotiations taking months. To combat these dropouts, headhunters recommend firms speed up their hiring processes. Raina emphasizes that companies cannot take weeks to make an offer, as swift decision-making is crucial in retaining top talent.