Q: What Guarantees Do You Give?

A: “It Is Inherent and Built into the Model”

“Existing in something as a permanent, essential, or characteristic attribute.”

Definition of “inherent’

A recent question during a networking call triggered this article, especially since I had been asked this question before: what guarantee do you give on your placements?

The reason for this question is obvious. Most executive search or recruiting companies do offer some type of replacement guarantee. It is an insurance policy for the client. Executive recruiting is a critical process for businesses as they strive to fill key leadership positions with the most suitable candidates. The task of identifying and attracting the right talent can be time-consuming, expensive, and fraught with risks. One way executive recruiters mitigate these risks is by offering their clients a guarantee, e.g., that if the executive leaves within a certain period of time, they will recruit a replacement free of charge.

Guarantees like that generally have four different elements:

Time Period: It ranges anywhere from just 30 days to a one-year replacement guarantee. It is obviously important that the period of time relates to the position. Relative to their importance, as well as the investment they require, senior executives typically come with a six-month or one-year guarantee.

Type of Guarantee: There are all sorts of guarantees in recruiting: (1) replacement of the position at no cost, (2) full refunds, (3) a prorated refund, or (4) a prorated replacement guarantee.

Exclusions or Conditions: Most recruitment agencies won't do a replacement if it's a restructuring and not the same position. And they also exclude conditions like sexual harassment, discrimination, or a hostile work environment from the guarantee.

Number of replacements: The key here is to understand motivations on both sides, the recruiting firm and the client, for either restricting the number or keeping it unlimited. At the end of the day, and most importantly, the firm’s reputation is on the line.

The guarantee on executive recruitment provides many benefits to both the executive recruiter and the client. It provides peace of mind to the client, protects the investment, aligns the interests of both parties, helps to reduce turnover, and can be a useful negotiating tool. Furthermore, the guarantee can help to build the reputation and brand of the executive recruiter, leading to more business in the future. Overall, the guarantee is a win-win for everyone involved.

So, what guarantee do we offer on a fractional or interim executive placement?

The simple answer is that the guarantee is inherent and built into our model. Our placements are neither retained nor made on a contingency basis. There is no upfront investment of up to $70k into recruiting before the executive even has their first day. We simply take a cut of the fees as they are being paid, typically monthly, while our executive works on behalf of the client. With that, we share a very vested interest with our client in the long duration of the assignment, leading us to identify the PerfectMatch™ among our pre-vetted roster.

Frankly, after just a couple of months, we have not yet recovered our investment in developing and refining a proprietary process and building a stellar roster of executives. In that, we align with our clients as they like to work with one executive throughout the entire project.

Contact us to discuss how our model is protecting your investment into your sales leadership capital.