What is your placement fee guarantee?

[UMS Healthcare]

This is a hot topic. Do you offer a replacement or money back? Is your guarantee prorated or depend on clients meeting stated payment terms? How long do you cover a placement under your guarantee? There is no right or wrong on this topic since so many recruiters have different beliefs and styles of doing business.

Chime in and let us know what you think.

[Allen Gladstone]

I offer replacement only, I will not sign an agreement with a moneyback guarantee. I typically offer a 90 day replacement guarantee, but I have signed a 6 month before due to a very big/important client requiring it and it was worth the risk based on the amount of business I do with them annually.
Also, when I do retained searches at the C level with very large fees (150K to 500K per search fee), I offer a 12 month replacement guarantee.

Best,
Allen gladstone
Stonepath Partners
[e-mail]
www.stonepathpartners.com

[Bob Jeffers]

While our guarantee is always a replacement (we do not accept assignments requiring repayment), the period is based on the % or search agreement. Case in point would be a retingency agreement is an annual agreement typically. Thus we give a 12 month replacement. On a 30% we typically give a 6 month guarantee and for anything less, is is normally a 3 month.

[Joseph Lawrence]

I offer a 30-60-90 day gurantee. If the employee leaves within the first 30 days I credit the client's account with the full fee toward the next placement. 31-60 days the client received a 2/3 credit to their account. 61-90 days the client gets a 1/3 credit. I find this works very well for me since I get a lot of repeat business from my clients.

[Diane Skullr]

we offer a non-refundable full credit guarantee for 30 days. I have NO control over what happens after a candidate starts working and I should not be held responsible for anything that I have no control of.

[James Diaz]

We offer a 30 day full money back guarantee, however the client has to give us an additional 30 days to replace the person first. This is all providing the client pays in net 10. If the client does not pay net 10 all bets are off and the guarantee clause in null and void.

[Carol Marttini]

Currently, we offer a 100 day guarantee for a no charge replacement for the same position contingent upon the client paying within net 10 days . Like James Diaz - all bets are off if they pay after that. We never offer money back. However, my preference would be to not offer a guaranatee at all. We are not in the business of selling people - they are not our product. We offer a service and once a capable candidate has been sourced by us and secured by our client, with our assistance, technically we have fulfilled our side of the bargain. The problem in the territory I cover is that most of my competitors do offer a guarantee of some sort. I like Joseph Lawrence's 30-60-90 and may give that a try. Thanks for that Joseph.
Carol
Human Capital Solutions

[Sarah Morris Smith]

I offer a pro-rated refund or replacement not both - not my favorite but since most of the clients I work with require that I do it.
I am just very selective on who I present for a job.