Six Ways to Stop Your Runner-Up from Running Away

It’s a familiar consequence of filling a big role: the internal candidate who tossed in their hat emerges, months later, rejected and eyeing the exits. He might stick around for weeks or months, but he’s already circulating the resume he spiffed up during the internal hiring process. What’s a leader to do?  

Cry quietly, apparently. “I’ve had it happen to me,” says former hospital leader Jennifer Cano, director of the national healthcare practice at Korn Ferry. “I came in as a healthcare CEO, and the COO had interviewed for that same role. He was amazing—but he left within weeks. So now I needed a new COO. We were both new, and all the institutional knowledge and relationships were gone, and we were starting below zero.” It’s difficult to overstate how disruptive this is to the leader and organization alike.  

And yet it happens all the time. Rejected internal candidates are twice as likely to leave an organization as other employees. During the search, the candidate inevitably envisions himself in the new role, and learning that the job won’t be his lands hard. Often the loss is public, as no matter how confidential the search, internal candidates are usually widely known. For positions like Dean of Medicine, there might be three or four or five internal candidates, all of whom are disappointed. “Handling and communicating with internal candidates is so incredibly important,” says Charlie Falcone M.D., director of the Physician Leadership Institute at Korn Ferry. “They don’t always quit, but when they do, it’s usually about how the decision was handled.”  

There’s no doubt that retaining runner-ups is a business priority: healthcare CEO turnover alone, without others taking flight, correlates with temporary financial performance declines, according to a 2025 systematic review of hospital chief turnover in Health Care Management Review. Here’s how to keep internal candidates from leaving—a strategy that begins long before the search is formally announced. It’s all in the framing:  

1. Don’t promise jobs to internal employees. Sure, an employee may be groomed as part of a succession plan—but that is not synonymous with that employee being a shoo-in for one singular role. “Any time you do a search, anything can happen,” says Falcone. “I always encourage clients not to overpromise.” Instead, develop employees for their futures, not for a specific position.

2. Encourage big swings. Good managers want their employees to shoot for the moon, and a big job opportunity should be presented as akin to an audition: it’s a chance to put oneself out there, in a multi-factorial selection process that is beyond their control, says Maureen Sutton, a principal and executive coach at Korn Ferry. Managers can talk employees through whether the position is a stretch, and how to present themselves in the best light.  

3. Prepare, from the beginning, for failure. The search can be framed as: if you don’t get it, it’s a wonderful opportunity to learn where we need to fill in the gaps and keep growing. “All of this is positive,” says Sutton. “Not getting picked is not a negative judgment.”  

4. Share the news swiftly, with a full explanation. Once the decision is made, speed is important: it should be communicated immediately, directly and very respectfully, says Falcone. “A full explanation for the decision is imperative,” he says. Speak to the candidate’s strengths, including the specific skillset that the organization appreciates, and also give feedback. And recognize disappointment. “Don’t belittle it—acknowledge it,” he says.

5. Provide an exciting career path. “People quit when they feel that there’s nowhere to go,” says Falcone. Managers can do good work here, by discussing the employee’s path and other options within the organization, including expanded responsibilities and development opportunities.

6. Talk about leaving early and often. The elephant in the room should not be an elephant, says Sutton. “The concept shouldn’t be avoided,” she says. Try tossing it into casual conversation, years before departure is a consideration: How can I support you? And yes, if you exceed the opportunities here, we want you to be prepared for that—my job is to help you grow.

Handled well, an internal job rejection doesn’t have to trigger an exit. Instead, it can be the moment an employee decides their growth still lives within the organization.  

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