Why do Companies Prefer Passive Candidates?

I spent most of my career in the hiring sector, and while most candidates I speak to are somewhat surprised that many hirers want to know how long they’ve been on the job market, it certainly doesn’t surprise me! This is a common line of questioning for recruiters, and that’s because some hirers place major stock in whether a given candidate is actively job searching or whether they’re a so-called “passive candidate,” one currently content where they are. 

I understand why this may seem superfluous. What does it matter how long someone has been seeking a new position? It doesn’t change their qualifications, or their fit, or their aptitude. And why wouldn’t companies want to hire employees who have been on the market? Such applicants would be eager, immediately available, and able to fill urgent needs!

Alas, there is a bias in hiring that favors passive candidates, despite those individuals often requiring a significant increase in compensation, career advancement, or benefits in order to consider changing companies. It seems almost counterintuitive, I know. And it forces us to wonder, well, why? If an active job searcher would be able to start quicker and require less financial incentive to sign on, then why would companies opt instead for the expensive and time-consuming challenge of poaching a passive employee?

The answer is largely a matter of psychology. We all want what we can’t have. That’s the first thing. Frustratingly simple, but real. Second is that passive candidates are often seen as safer bets for hirers because there’s little risk of them accepting another offer elsewhere, only the possibility of an internal counter-offer. And finally, if a company has the significant resources needed to seek an established, passive candidate —and not all of them do— they might believe that the fruits of passive poaching are simply sweeter. 

One can see how they might come to that assertion. Because passive candidates are usually well-compensated enough that they are currently content, employers view them as having been already vetted, in a sense. Someone has decided that these individuals are sufficiently valuable to command a significant salary, good benefits, and a pleasurable work environment, so prospective employers may feel there are less questions with these applicants than others who are not happily attached to an employer.

Such assumptive communication is an unfortunate but unavoidable part of the application process, and simply because we’re actively searching for a new job, employers may make assumptions about our character or work ethic. We clearly weren’t satisfied in our last role, but our last employer also didn’t move mountains to keep us either. And the longer we’ve been on the job market, the more hiring managers might feel that there’s something wrong with us, even if they can’t see it themselves.  

I understand being upset by this. And I agree! It’s upsetting. But I think it’s important that we see hiring managers as people, and hiring departments as made of individual people too. This is what humans do: We make assumptions and snap judgments. We use context clues to fill in murky parts of a picture. Hiring managers will impart their own fears and reservations onto candidates whenever they find gaps or uncertainties in employment histories. It’s not necessarily fair. It’s not necessarily correct. But it’s the reality of the market. 

So let’s say we have been on the job market for a while, and we don’t have the luxury of being content at our current positions (and it certainly is a luxury). How do we approach a job market that may well be primed against us.

First thing: Take heart. Not all employers can afford the drain on resources it takes to poach a contented candidate, for this approach essentially means absorbing a financial hit up-front, in the form of high starting salary and benefits, in exchange for avoiding the possibility of a lengthy hiring process or subsequent training period. 

All we can do is be well-researched, thorough in our applications, and honest. Plenty of candidates remain on the market for longer than expected and for a variety of reasons: hiring is put on hold, companies change their requirements mid-interview-process, and personal situations arise. There’s no way of knowing if an employer is prioritizing passive candidates, and we must approach each application as our application is as good as anyone’s.

While this blog may not necessarily help you get that new position, I hope it can help demystify a job market which isn’t always kind and isn’t always thoughtful and isn’t always understanding. But it’s all we’ve got.

Regardless, you’re a good judge of your own abilities, and if you’re not having the success in the job market you deserve, it may be wise to seek some assistance. Reach out to me, Nancy, on LinkedIn or at www.idealinterviewco.com/contact if you’d like a professional to help you level-up your profession.