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SpinDistribute.com Article Directory

The following article was published in our article directory on February 25, 2015.
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"Loss Aversion-- how to reframe it and get Job Offers accepted!".

Article Category: Advice

Author Name: Tyron Giuliani

As a recruiter, despite our best efforts, we face the very real chance of our client's offers being rejected by our candidates. We can employ "tactics" to ensure we have covered all the Principles of Influence in our build up to the Offer. As a quick reminder, the 6 Principles center around the following factors that shape our decision/influence on others: reciprocity, commitment/consistency, social proof, liking, authority and scarcity.

Yesterday, I was reminded by a friend of one other factor (and there are surely many more) that can de-rail an Offer-- Loss Aversion. In Philip Carrigan's article, "Loss Aversion: Why Candidates Reject Offers." Carrigan wrote, "... losing something is twice as strong psychologically as the thought of gaining something. The phenomenon of risk aversion leads candidates to evaluate outcomes comprising similar gains and losses since people prefer avoiding losses to making gains. The pain of loss is so great that it can outweigh the gains." As recruiters, we are asking someone to make a huge life change. Moving jobs is one of the hardest and largest decisions a professional makes in their life. Next to buying a house, getting married; job change is right up there as a huge decision!

Loss aversion with regards to job change, is something we as recruiters observe, but maybe we haven't really dissected it enough. Certainly I haven't given it enough attention even with hundreds of placements under my belt and over 12 years of recruiting experience. The way someone perceives loss is unique and is more than likely different to the way you perceive the same loss. Carrigan reminds us, "... that the offer we present can easily be seen differently from another person's point of view. What a candidate is losing is often at the top of their mind. They may view their own position as more attractive than how others may see it.".

This is great advice. One really needs to empathize and try your hardest to see it through the candidate's eyes. But what can we say as a recruiter to try to take the emotion, and fear of the loss out of the equation; or at least have the candidate consider the offer from a different frame of mind. I propose we start asking this hypothetical to our candidates. It may help re-set a decision. I suggest something like this:.

"Mrs. Candidate, I know moving jobs is a huge decisions. It's one that I've helped hundreds do, and I know how you are feeling, it's the same I've seen everyone have before the move. But I want you to imagine this. Let's say, somehow tonight, while you've been sleeping, an email was sent to your boss telling them you quit your job. Tomorrow morning, you wake up, and find yourself at the new company. Your sitting at your new desk, new people around you and have that great new title and challenge ahead. You feel ready for this new job! Now, you have a choice. Your old job is actually still open for you. You can quit right now and go back to it and have no consequences. Or you can choose to stay at your new office and start day one. What would you do?".

I'm pretty sure most people would select to stay on. This question might just change their perspective. It could give them a little more clarity and the much needed emotional space to make a decision that is no based on aversion but one of opportunity.

Keywords: recruiting, headhunter, executive search, advertising recruiter

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