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Historically, Recruitment Agency Guarantee Periods were given to ease the concerns of cynical clients who thought recruiters would beat a square peg into a round hole to make a quick placement and collect a fee. A gesture on our part to convince a company that our main intention was to place a long-term contributor.
Part of the service we provide is to consult through the resignation process (decreasing the likelihood of a counter offer), to communicate through the notice period, and to follow-up during the first 30-60 days to ensure the fit is working. Therefore, on some level, we do have some degree of control for certain situations where the client company is exposed for loss.
However, doing our job thoroughly the exposure for a guarantee has most often to do with things outside of our control, such as downsizing, a poor hiring decision, or an unhealthy culture that produces turnover. In such cases, we are exposed to risk outside of our control. At ASIE Personnel, because we work hard to ensure long-term hires, our fallout rates are well below the national average.
We work in the murky waters of human behavior. We have the only product in the world that can say, “I don’t like the way the customer you sold me to is treating me”.
When you buy an HDTV, and they promised you it would be compatible with your cable and would have a clear resolution, and then it doesn’t, or it dies after 10 days of use, of course, you want your money back.
But in our business, our job stops the day the candidate starts.
Every day from then on, if the candidate leaves, research shows it is generally of their own volition because they believe the employer misrepresented the job or was a different person to work for than to interview with.
None of which we, the recruiter, has any control over.
Once our client interviews, reference checks and makes an offer, they take on a responsibility that grows every day, while our influence fades every day. We guarantee that our candidates are who they say they are and have done the things they claimed they did. We verify salary and degree.
A placement is not like a purchase of a product. It is more like the closing on a house. Could you close, and two weeks later find your fireplace doesn’t work and demand the bank give you the money back? No. There was an inspection, a title search, an appraisal. The bank did their job.
It is patently absurd for us to guarantee something we cannot control. Every day that a candidate is at a job we have less and less to do with them leaving or staying. After day 60, you can bet the candidate is leaving either because promises made are not being delivered, or the client realizes they were great at interviewing but not so great at performing, neither one of which is under our control. There have been references, multiple interviews, sometimes complex psychological or ability testing.
We work together with all our clients to improve the process and fine tune the qualifying. When all is said and done, it’s the client’s decision to hire. Once the candidate starts the ball is in the employer’s court; to ensure a proper induction and training process is followed, and that communication and expectations are clear between employee and employer.