Losing candidates through the hiring process? Here’s what to do
There’s nothing quite as exciting as seeing your job ad go live and hoping enquiries and applications flow in.
That’s why it can feel disheartening if a candidate withdraws their applications or drops out between the initial interview and the final offer.
Anica Weereratne, a senior consultant with specialist HR recruitment firm The Next Step she’s seeing firsthand that while the job market is tighter at the moment, some candidates are still dropping out from the hiring.
“Although job opportunities are more competitive, most candidates we meet are actively interviewing for several roles at the same time,” she says. “This means they can still be selective about which opportunities they pursue and which they decide to opt out of.”
“Because the pendulum has started to swing back in favour of hirers and recruiters, some would assume you would see less candidates dropping out as the job market becomes more competitive,” says Shay Peters, the CEO Australia & New Zealand of Robert Walters NZ. “However, there are a number of reasons a candidate might decide to terminate their application. It’s important for an organisation to address this, as businesses simply can’t afford to lose great candidates during the hiring process.”
One of the impacts of candidates pulling out during the recruitment process is that the time needed to fill the role is drawn out, which can put pressure on the team and ultimately result in increased organisational costs.
Why candidates drop out of the hiring process (and what you can do about it)
Weereratne and Peters say there are five main reasons why people may pull out of the process of competing for a role.
The process is too long If other businesses turn around their hiring process quickly, a longer hiring process can make it harder for you to hold onto candidates throughout. Setting clear expectations can help. “Have a clear interview process set out prior to engaging candidates and set these expectations with candidates so they have a good understanding of the timeline,” Weereratne says. “Ensure there is flexibility to progress to second interviews quickly and avoid adding extra steps in at the last minute.”
The salary for other opportunities is more competitive According to SEEK research, 37% of people planning to change jobs in the next six months say it’s because they’re not being paid enough, proving how important salary is in attracting and retaining top talent. “Do research to ascertain if your role is being pitched at the right level in the current market,” Weereratne advises. “Be transparent with candidates about what the role is paying and have salary conversations up front.” But remember, money isn’t everything. Even if you don’t have much room to move on salary, you may be able to offer other enticing work perks or benefits.
The organisation doesn’t offer additional benefits More and more candidates are interested in knowing about the broader benefits an organisation can offer. Flexibility around work hours and location are two highly valued perks. Supplementary compensation may also include gym memberships or health insurance, while initiatives such as parental leave and volunteer days can also help to attract and retain candidates. SEEK’s Money Matters report shows that Kiwi workers value time-based benefits highly such as increased annual leave (43%), reduced working hours (29%) and more flexible working arrangements (29%). Offering a mix of benefits can make a role more appealing and help organisations stand out to top talent.
Lack of clarity around the role or opportunities for progression If candidates aren’t clear about the opportunity for development or progression, or if there’s a lack of clarity about what the role is designed to achieve, you risk losing them. “Keep your messaging consistent with your vision and what you want from the role,” Peters says. “Ensure this is in your job description and ad.” Weereratne notes organisations that can demonstrate clear, structured development pathways and training opportunities will attract high potential talent. “I have spoken to many standout candidates who are willing to take a sideways step if an organisation will empower them to learn, provide them with opportunities and nurture their careers,” she says.
A lack of contact or communication throughout the process “My biggest piece of advice is to keep the communication up,” Peters says. “Don’t be afraid to give the candidate a call and understand how they’re feeling about the role. The single biggest reason why candidates drop out is silence.” And don’t forget that letting candidates know they have been unsuccessful is crucial. Doing so means your process is transparent and candidates are more likely to positively regard your business and your brand.
Never underestimate how important it is to know why candidates drop out of the recruitment process. Understanding the importance of clear communication, efficient processes and competitive offerings means you can respond to this proactively and reduce the chances of it happening to your business.
Source: Independent research conducted by Nature on behalf of SEEK, interviewing 6,000 workers. Published December 2025.
Research conducted by market research agency Nature on behalf of SEEK, between February and April 2025 via an online survey. Responses were gathered from more than 1,500 individuals currently in the workforce (either employed or looking for work), aged 18 to 64, and living in New Zealand.