If a candidate you hire through a recruitment agency doesn't work out, the specific course of action and results can vary. These outcomes depend on what terms were agreed on with the recruitment agency, local labour laws, and your company's policies. Here are some common scenarios that might occur.
Many great recruitment agencies offer a replacement guarantee period, during which they agree to find a replacement candidate for the position if the first hired candidate doesn't work out. The replacement guarantee period usually ranges from 30 to 90 days after the candidate's start date. In such cases, the agency will work to find a suitable replacement at no extra cost to you.
At 11 Recruitment, we offer an unmatched 18-month performance-based guarantee which means if the candidate is terminated for performance-based reasons within an 18-month period after being hired, we will find the right replacement for you free of charge.
Refund or credit
Some agencies might provide a refund or credit for the fee paid if the candidate leaves the role within a certain time, usually during the replacement guarantee period. The refund or credit policy should be explained in the recruitment agreement.
Investigation & feedback
If the candidate's performance is poor, the recruitment agency may conduct an investigation to understand the reasons behind the candidate's poor performance. Feedback from both the candidate and the employer can help the agency improve their matching process in the future.
Re-evaluation of the hiring process
If there are issues that continue to recur with candidates not working out, it may be necessary to re-assess the hiring process, including the job description, candidate screening methods, and interview process. The recruitment agency might may with you to find areas to improve.
Termination & severance
Depending on the labour laws in your country and the terms of the candidate's employment contract, you may need to end their employment. In such cases, you might need to provide enough notice or severance pay as per local rules and regulations.
In some cases, if the candidate's lack of suitability is related to discriminatory hiring practices or other legal issues, there could be legal consequences for both your company and the recruitment agency. It is important to ensure that the hiring process is fair, compliant with laws, and does not discriminate against protected groups.
To reduce the risk of hiring the wrong candidate, it is important to communicate clearly with the recruitment agency about your specific needs and actively work with the agency during the selection process. Regular communication and feedback will help them understand your company culture and needs better, leading to more successful hires in the future.
For more information regarding this topic, check out SEEK's article on six things you need to know when working with a recruiter.
Additionally, if you're interested in using a recruitment agency to hire a new employee, click the button below for why you should choose 11 Recruitment.
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Now that you better understand what happens if a candidate you hire doesn’t work out, you may be interested in learning more about 11 Recruitment's permanent recruitment services.
11 Recruitment is the leading perm and temp recruitment agency for white-collar staff. We source high achievers for jobs in Perth and throughout Australia.
At 11, we typically get involved in the recruitment process when a client is either seeking a high achiever to elevate their business, recruiting for a role that is hard to fill, or having difficulty sourcing or attracting suitable candidates.
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