The real cost of candidate dropout
Early dropout of temp workers is one of the biggest cost items for staffing agencies. Not only the direct replacement costs (average €850 per candidate) but also the indirect costs: time lost for recruiters, reputational damage with the client and the risk of the client switching to a competitor.
On average 23% of placed candidates drop out within 3 months. For an agency with 100 active placements per month that means 23 replacements, a monthly cost of over €19,000.
The good news: most dropout is predictable and preventable. Candidates who are going to drop out almost always give signals, but those signals are rarely picked up in time. Feedback is your earliest warning system.
Why candidates drop out early
Before you can prevent dropout you need to understand why it happens. The most common causes:
- Mismatch between job description and reality (most cited cause: 34%)
- Poor reception by the team at the client
- Unclear expectations about working hours, tasks or terms of employment
- Lack of support in the first weeks
- Personal circumstances (illness, relocation, better offer elsewhere)
- Conflict with manager or colleagues at the client
34% of dropout is due to a mismatch between job description and reality, a problem you can prevent with better communication and timely feedback measurement.
Of these causes the first four are directly influenced by your agency, if you spot them in time. And that is exactly where feedback comes in.
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The 3 critical feedback moments to prevent dropout
Moment 1: Right after intake
Send a short questionnaire within 24 hours of the intake meeting. Ask whether the candidate feels well informed about the role, terms of employment and next steps. A low score here is an early sign that expectations have not been set correctly.
Action at low score: the recruiter makes contact to clarify misunderstandings before the candidate starts.
Moment 2: Day 3-4 of the first week
The first week is the most critical period. Send a check-in questionnaire on day 3 or 4 with a maximum of 3 questions. Ask how the first days are going, whether the job description matches reality and whether the candidate needs extra support.
Action at low score: the recruiter calls the same day. Problems solved in the first week rarely lead to dropout. Problems that are ignored almost always lead to dropout.
Moment 3: End of the first month
After a month the candidate is onboarded. Send a slightly longer questionnaire (5-7 questions) about the work atmosphere, support, fit with the team and satisfaction with the role. Also ask whether the candidate is interested in contract extension.
Action at low score: schedule a three-way meeting between recruiter, candidate and client to discuss and resolve problems.
How do you set up an automatic dropout-prevention flow?
Manual follow-up does not scale. The solution is an automated feedback flow that sends the right questionnaire at the right time and automatically sends an alert at a low score.
- 1Connect Feedback Analytics to your ATS and import candidate data with start date and responsible recruiter
- 2Create three questionnaires: intake feedback (3 questions), week-1 check-in (3 questions), month-1 evaluation (5-7 questions)
- 3Set triggers: 24h after intake, day 3 after start date, day 28 after start date
- 4Configure an alert for NPS ≤ 6: send a notification straight to the recruiter with the candidate's name and score
- 5Set an SLA: recruiter makes contact within 24 hours on an alert
- 6Analyse monthly which questions are the best predictors of dropout
Results in practice: what does it deliver?
Agencies that implement this approach see on average the following results:
- Dropout rate drops from 23% to 12-15% within 3 months
- Replacement costs fall by 40-50%
- Client NPS rises by an average of 12 points
- Recruiters save an average of 3-4 hours per week on manual follow-up
- Extension rate rises by an average of 18%
Conclusion: feedback as a dropout-prevention tool
Candidate dropout is largely preventable if you pick up the right signals early enough. Automated feedback flows give you that insight without extra work for your recruiters.
Start with one check-in questionnaire after the first week. Analyse the results after 4 weeks and then expand. The ROI is visible straight away: less dropout, lower replacement costs, satisfied clients.