Guarantee Period

How the guarantee works

The clock starts on the hire's first day. If employment ends inside the window, the client notifies the agency in writing, usually within a few business days, and the agency either searches again at no fee or refunds part of the placement fee. Replacement is the more common default; refunds are often available only if the agency cannot find a replacement within a set time, such as 60 days.

Guarantee terms apply to permanent direct hire placements. Temporary staffing does not normally carry one, because the client can end the assignment and request another worker at any time.

Typical guarantee lengths

• Contingency placements for professional and mid-level roles: 60 to 90 days is common.
• Hard-to-fill or high-fee roles: 90 days to six months.
• Retained executive search: often six months to a year, almost always as a replacement search rather than a refund.
• High-volume or hourly direct hire at low flat fees: 30 days, sometimes none.

Longer guarantees usually come with higher fees or replacement-only terms. A refund guarantee of six months on a 15% fee is rare, and an agency offering it may be pricing in a lot of risk.

Replacement vs refund

A free replacement keeps the agency's revenue and gives the client another search. That suits clients who trust the agency and still need the role filled. A refund suits clients who may not refill the role or who doubt the agency's ability to find a better fit. Prorated refunds reduce in line with days worked; stepped refunds drop at the end of each month. Some contracts offer a credit against future fees instead of cash, which is worth less to the client than it sounds unless it hires through that agency regularly.

Common exclusions

Most guarantees do not apply when:

• The role is eliminated, the hire is laid off or the position changes materially.
• The client fails to pay the fee on time. Late payment often voids the guarantee entirely.
• The hire leaves because the employer changed pay, hours or location, or because of documented mistreatment.
• The hire is terminated for reasons the employer knew about before the offer.
• The client does not notify the agency within the required time.

Read the exclusions as closely as the guarantee itself. In practice, the late payment exclusion catches more clients than any other.

Making guarantees work for both sides

For clients, the guarantee is not a substitute for a good onboarding plan. Most early departures happen because the job did not match what was sold in the interview, or because the first weeks were chaotic. Share a realistic job preview with the agency and agree what the first 30 days will look like.

For agencies, early fall-offs hurt margin and reputation. Track them by recruiter and by client. If one client produces three times your normal fall-off rate, the problem may be the client's onboarding or management, and a contingency search on poor terms may not be worth taking.