What happens if I need to use my Recruitment Guarantee?

Hiring the best talent can transform your organisation.

The best recruitment outcomes are based on a well-planned hiring strategy and a robust, merit-based process.

There’s no doubt that hiring decisions are critical decisions.

The good news is that when you work with a recruitment agency on a permanent hire, you get an assurance that you’re hiring someone who fits the brief, is engaged with your organisation and the role - and will stay. This assurance is called a recruitment guarantee.

As your recruitment partner, we find, attract and engage top talent to join your organisation - and support you to make the best hiring decisions.

Because we’re passionate about this, we’ve written others posts for employers about the recruitment process but on very rare occasions, despite a robust process, due diligence and everyone’s best efforts, things don’t go to plan.

When this happens, a recruitment guarantee is your warranty.

The guarantee provides that if your new employee leaves the organisation under stated conditions and within a predefined time frame, your recruitment partner will find a suitable replacement, without additional cost.

Taking into account the impact on productivity and performance as well as the real costs of recruiting and onboarding a new team member, the cost of hiring the wrong person can be up to 150% of their salary.

While some of these costs can’t be reversed, if you’ve hired someone through a recruitment agency and they leave within the guarantee period, you might be protected against the recruitment cost of finding a replacement.

A typical guarantee clause will state that the replacement guarantee only applies if your new employee leaves inside the guarantee period (usually 3 months) for a reason other than redundancy, restructure or any change in the original job specification.

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What to do if you need to activate your replacement guarantee?

If you need to use your guarantee, you should need to follow these steps:

Ensure the placement fee invoice is paid on time. Late payment may void the conditions of the guarantee.
If you have concerns about your new employee’s performance, speak with your recruiter as early as possible. A good recruiter works with you in partnership and is invested in getting it right. Explore options to support both employee and hiring manager to remedy the situation.
If the situation can’t be resolved and your new employee decides to leave, ensure an effective and transparent exit process, including an exit interview. Your recruiter can support you through this process, including conducting the exit interview if required.
Meet with your recruitment partner to discuss the recruitment strategy to find a replacement. It’s important to have an honest conversation about why the previous employee didn't work out. Be sure to discuss the key skills, experience and approach your ideal employee will bring.
Make any necessary changes to the job description and recruitment marketing content.
Agree a recruitment timeframe for the new search.

5 Considerations For Choosing a Recruitment Agency

Discover how we’re different and give you a competitive advantage.

Hiring decisions are critical decisions. Recruitment is a highly strategic, time-intensive process.

Working with a recruitment partner gives you an assurance that the money you invest in the recruitment process will not be wasted.

In the event your new team member leaves in the early stages of their employment, the replacement guarantee is there to protect you.

Read more about the benefits of building a long-term partnership with a recruitment business.

Learn how to design a robust recruitment process and avoid hiring the wrong person with our other hiring resources.

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