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NewslettersFortune CHRO

Only about half of job candidates say they trust the organizations they apply to

By
Amber Burton
Amber Burton
and
Joey Abrams
Joey Abrams
Down Arrow Button Icon
By
Amber Burton
Amber Burton
and
Joey Abrams
Joey Abrams
Down Arrow Button Icon
July 26, 2023, 7:49 AM ET
Smiling businesswoman shaking hands with client before meeting
A significant porting of job applicants lack trust in the organizations at which they apply, according to management consulting firm Gartner. Getty Images

Good morning!

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There’s been much chatter this year about the merits of garnering employee trust. But what about building trust among potential new hires before entering the door? 

Prospective employees could easily be written off as unworthy of further investment as leaders tighten budgets and try to increase efficiency. But research finds that failing to build trust among job candidates could result in fewer accepted job offers and shorter retention among new hires. 

A recent survey from management consulting firm Gartner finds that slightly over half (54%) of job candidates say they trust the organizations to which they’re applying to be honest during the hiring process. Even more concerning, 44% of survey respondents say they’ve accepted a job offer only to change their minds later. 

Faith in employers is already low among workers who have gone through layoffs and feel they lack job security. “Some research has found that employees who have gone through a layoff are 65% more likely than those who have not been laid off to quit their next job,” according to Gartner. Its data portend these new employees will be an immediate flight risk and look for better or more secure job opportunities after acquiring their new positions.

Carmen von Rohr, a senior principal in Gartner’s HR practice and the report’s author, advises HR leaders to rethink the candidate experience entirely. That starts with reconsidering who makes first contact with potential job candidates. Gartner finds that potential hires trust hiring managers more than recruiters, primarily when relaying critical information like possible career paths and company culture details. 

It also finds that early-career employees are more likely to trust an organization when current employees are involved in hiring. “Entry-level candidates are much more likely than their mid or senior-level counterparts to trust other employees most with cultural and diversity information. They are also more likely than other candidates to trust current employees’ answers to questions about work-life balance and the management style of their prospective manager,” von Rohr writes, adding that HR leaders should equip recruiters with the right tools or training to exemplify why top applicants should accept a job offer.

Otherwise, recruiters can become a “point of risk,” writes von Rohr. “Sixteen percent of candidates who withdrew from a position after accepting an offer say they did so because of a negative interaction with a recruiter.”

Amber Burton
amber.burton@fortune.com
@amberbburton

Reporter's Notebook

The most compelling data, quotes, and insights from the field.

The chip industry anticipates a talent strain due to a dip in U.S. graduation rates. 

“Chipmakers are on course to add about 115,000 jobs by 2030, the Semiconductor Industry Association said, citing a survey it commissioned. Based on a study of current degree completion rates, though, about 58% of those projected positions could remain unfilled.” Bloomberg

Around the Table

A round-up of the most important HR headlines, studies, podcasts, and long-reads.

- CIOs are worried that the Supreme Court ruling on affirmative action could present obstacles to retaining tech talent. Wall Street Journal

- The Education Department opened a federal civil rights investigation examining Harvard University’s legacy admissions practice. The investigation follows a formal complaint that the university unfairly rejected minority applicants in favor of those with legacy status. New York Times

- More Americans are turning to gig work to soften the blow of unemployment and rising personal debt. CNN

- Tech employers are pulling back on the amount of office space they occupy in major cities like New York. Their absence is now clouding the economic outlook for major metro areas. New York Times

Watercooler

Everything you need to know from Fortune.

Clocking out. More employers are observing a “dead zone” in the office after 4 p.m. The extra afternoon hour offers employees a chance to take care of household responsibilities or engage in leisurely fun before their daily batteries run out. —Orianna Rosa Royle

Vacant no more. San Francisco offices are showing signs of rebounding after record vacancies. Demand for office space grew about 10% last quarter, according to commercial real estate technology firm VTS. The growth has been largely attributed to an increase in demand among A.I. companies. —Natalie Wong, Eliyahu Kamisher

Gaming, automated. Video game studios are offering department heads $7,000 for novel A.I. ideas. "The impact of A.I. on the game industry in the past three to four months may be as dramatic as the changes in the past thirty or forty years," says one CEO. —Takashi Mochizuki, Jane Zhang

This is the web version of CHRO Daily, a newsletter focusing on helping HR executives navigate the needs of the workplace. Sign up to get it delivered free to your inbox.

About the Authors
By Amber Burton
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By Joey AbramsAssociate Production Editor

Joey Abrams is the associate production editor at Fortune.

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