8 Things To Know About Your Recruiting, Search and Placement Warranty

The basics of warranties are simple. If a product or service is unsatisfactory, through a warranty, the vendor agrees to replace it for a stated period of time. This applies to a search and placement warranty, too.

Here are 8 things you should know about your recruiter’s search and placement warranty.

Your current hiring agreement should cover these, but most of all you should know how these effect the terms, conditions, fees and other details about search and placement warranties.

1. Get it in writing. If it’s not in writing, you do not have a warranty. The contingent or retained search agreement you have with your recruiter or search firm will have a section called “Warranty.” It will state clear terms for when a recruited employee will be replaced. It will state clearly under what circumstances and how long the term is.
2. Time bound. Warranties are time-bound. In organizations, things change dynamically. stated period of time based on the fee paid.
3. Valid reason. Warranty terms state the valid reason(s) for it to come into effect. Valid reasons would be the employee is terminated for cause, or quits, during the warranty period. Reasons that are less valid include any reason that should have been discovered during the interview process and evaluation of candidates.
4. Follow the law. Employers should follow all applicable federal, state and local labor laws for hiring. Your recruiter is following the law too. Failing to do so is not a valid reason to invoke the warranty you have with your recruiter.
5. Warranties vary. Warranty terms vary based on several factors, including: the type of job, the pay rate, and level in the organization for the position. The variations might include, refund vs. replacement, and if refund, prorated vs. full.
6. Fees vary. The longer the warranty duration and higher the position in the organization, the higher the recruiting fee is likely to be and as well, the greater the work to find the right candidate. It stands to reason, that the fee also pays for the warranty risk that your recruiter is taking on.
7. Set expectations. Be sensitive to the variations that determine the scope of the warranty you can expect from your recruiter. The warranty for an exclusive retained search for a vice president level position might have a warranty 6 months to a year while a non-exclusive contingent search for a maintenance technician at an hourly rate is likely to have only a 30 day warranty.
8. Be introspective. If you are triggering a warranty, and especially if it is for the second time, ask if there is an internal reason at all responsible. Post mortem analysis of the employee’s exit interview sometimes reveals other issues that need addressed. Your recruiter partner can help – just ask.

Win – Lose Negotiation, Don’t Do This

It may seem logical to drive your recruiter to provide hyper-extended warranties, for little or no fee increases. That is a win-lose negotiation strategy, that will ultimately erode trust and result in lose-lose situations with any business partner.

However, building trust through a fair exchange of exceptional services for matching and appropriate fees is a much better way to create a partnership culture. Building trust this way ultimately will accelerate organizational development goals that will best meet your corporate objectives for business, profit, and success.

Share Responsibility, Do This

It’s critical to share responsibility to hire the best candidates. Exceptionally long warranty periods can indicate problems. Your recruiter may undervalue the warranty on their work which requires examination as to why.

Or, outsized warranties for the position may mean your hiring team is not effectively participating in the process. Relying on 120 or 150 days of warranty to decide if a hire is a good one indicates a problem in the interview and selection process. This case also has an effect on achieving business objectives.

Barton Professional Placement has a well defined rate table for service levels and appropriate warranty periods and terms. Each match up well with basic, full contingent, and retained search approaches that are available to clients. Individual contributors often have 30, 60 or 90 day replacement warranties, depending on the position.

Call us to learn more about our hiring options and warranty replacement terms. But mostly call us to engage us to help you realize your organizational development and business goals through effective hiring.