Organizations Must Understand Candidates’ Priorities to Attract and Retain Talent in Today’s Uncertain Labor Market
The 1Q25 Gartner survey of nearly 3,000 candidates conducted from January through March 2025 revealed that 35% of candidates backed out after accepting a job offer in 1Q25, compared to 48% of candidates who reneged after accepting a job offer in 1Q24.
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“We are seeing signs of a softening labor market, with fewer candidates getting multiple offers or backing out after accepting a job,” said Caroline Ogawa, Director, Research in the Gartner HR practice. “Even with candidates seeing less opportunity in the market, organizations are still struggling to attract talent, as candidates get more selective about the jobs they pursue.”
Competition in the Labor Market Likely to Increase
“As organizations continue to navigate through the unpredictable business environment, HR leaders must challenge assumptions about how labor market competitiveness tracks with economic cycles and pay close attention to actual candidate behavior,” said Dion Love, Vice President, Advisory in the Gartner HR Practice.
Candidates are Prioritizing Compensation and Career Growth
“When candidates do accept a new offer, they are prioritizing compensation and career growth. Organizations need to show they can help candidates get ahead, with either an impressive salary increase or career opportunities,” said Ogawa.
When evaluating employment offers, candidates are also considering work-life balance (45%), better working conditions (39%), and opportunities to learn new skills (39%).
These factors are more commonly prioritized over total rewards offerings, including better healthcare (22%), PTO (10%), and parental leave (6%).
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