What is a recruitment guarantee, and why should you have one?

If you’ve ever thought about partnering with a recruiter, chances are you’ve considered the potential gains and potential pitfalls. 

What if they don’t understand your organisation or can’t find great people? Even worse: what if the person you hire through a recruitment agency doesn’t work out?

Recruitment is a professional service. There is no product, per se. But there kind of is! The product is people. And people can be unpredictable.

Every time you hire a new employee, you have an opportunity to transform, improve and grow your team and organisation. Hiring decisions are critical decisions, and when things don’t go to plan, you need some protection.

Enter the recruitment guarantee

A recruitment guarantee is your warranty. It is essentially an assurance that you are hiring an employee who fits the brief and who is engaged with your organisation and the role. It’s a guarantee that you’re getting someone who will stay.

This guarantee states that if your new employee leaves your organisation under stated conditions and within a predefined time frame, your recruitment partner will find a suitable replacement for you, possibly without additional cost.

Of course, the ideal scenario is a superstar new employee who stays with your organisation long-term, but on some rare occasions, despite the best efforts of everyone involved, things don’t work out that way.

Every recruiter will have their own approach

A trusted recruitment partner will not only work with you to support the best hiring decisions. They’ll prove the quality of their service and give you peace of mind with a recruitment guarantee.

It’s important to note that every recruitment business has their own guarantee offering, so it’s essential that you know what your recruitment partner offers, including conditions and exclusions.

Heart Talent’s guarantee is listed in our terms and conditions. If you have any questions about our approach, just ask!

Where can I find the details of my replacement guarantee?

You’ll find the details of your recruitment guarantee in one or more of the following places:

• in your recruitment partner’s terms of business (which are usually signed at the beginning of the recruitment project)

• in the panel agreement or service level agreement (SLA) your organisation has in place with a recruitment agency

• as a clause in any other agreement or contract you have in place.

While it’s not a legal requirement for recruitment partnership agreements to include a recruitment guarantee, it is best practice. In other words, if your agreement or the terms of business don’t include a guarantee, it's important to ask why.

What to look for in a recruitment guarantee

A recruitment guarantee can also be referred to as a replacement guarantee or placement guarantee and will likely include some or all of the following key terms:

• guarantee period, or the time frame during which the guarantee is valid (usually 3 to 6 months)

• exclusions or special circumstances that may limit the guarantee (such as if you don’t pay your invoice on time or the role specification changes)

• options for activating your guarantee, like a refund, rebate, replacement or other services

• the process for enacting your guarantee (the process to follow).

What are some exclusions to be aware of?

It’s important to be aware that your recruitment guarantee will likely not apply if your new employee leaves their role due to redundancy, restructure or any change in the original job specification.

Most recruitment guarantees are activated when the placement invoice is paid on time, according to the payment terms agreed with your recruitment partner.

If you think you might need to use your guarantee, follow these steps

1. Ensure the placement fee invoice is paid on time. Late payment may void the conditions of the guarantee.

2. 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.

3. 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.

4. 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.

5. Make any necessary changes to the job description and recruitment marketing content.

6. Agree on a recruitment time frame for the new search.

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 that your new team member leaves in the early stages of their employment, your replacement guarantee exists to protect you.

What next?

Learn more about what happens if you need to use your recruitment guarantee on the Heart Talent blog.