Free Replacement For The Second Time - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Tajsateesh
Recruitment/talent Acquisition, Career Counselling
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Samvedan
Consultancy_hr & Ir
Paladin
Hr Consultant
Milind.halbe
Manager Human Resource
+2 Others

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Hi Seniors,
We are in HR Staffing, we have a client in mumbai for whom we have given Free Replacement as the first candidate left in 35days.
The Second incumbent also left the company in 40days.
Now, they are asking for a replacement for him as well. Its a fix for us as we havent come across such a case.
The agreement we have says "We will provide free replacement in case the candidate leaves the company within 90days of his joining"
Candidates were freshers, they left , as training was inefficient.
Provide an answer whether we should or should not provide replacement again.
Regards,
Karan Dass

Hi Seniors,
We are in HR Staffing, we have a client in mumbai for whom we have given Free Replacement as the first candidate left in 35days.
The Second incumbent also left the company in 40days.
Now, they are asking for a replacement for him as well. Its a fix for us as we havent come across such a case.
The agreement we have says "We will provide free replacement in case the candidate leaves the company within 90days of his joining"
Candidates were freshers, they left , as training was inefficient.
Provide an answer whether we should or should not provide replacement again.
Regards,
Karan Dass

Dear Friend
As an HR it is my opinion that you should give a free replacement.
You are getting paid at least a month's CTC of the candidate; which is for filling up a particular position in the planned organization structure.
The operative word here is CANDIDATE; as in "... provide free replacement in case the candidate leaves the company within 90 days of his joining"; and not whether it is candidate A or B or C.
So whether it is the 1st candidate or n+1st candidate; if they are not staying even for 3 months then paying each time for a new candidate may mean that in a year at least 8 or 9 months salary has to be paid to the Recruitment Consultant alone !!!!
In fact if thee HR and the Consultant gang up; this might be a perfect set-up to milk the company. Can any management allow this ?
So, free replacement has to be considered as a Business Risk by you and accordingly built into your business plan and revenue-model.
Warm regards.

Hi Mr.Raj,
Thanks for the revert.
It gave me an view from the clients perspective.
I had conducted the Interviews with both the candidates who left the job, their reason was "Lack of Training & Knowledge Transfer".
We are here victimised because these organizations cannot control their attrition & rely on back-to-back replacements.
There is no hope on the next placement would survive this period as well.
One thing is for sure that they are gonna have to up the ante in the way to Manage People.
We look forward to resolve this with mutual benefit.
Cheers.
Regards,
Karan Dass

Thanks for your response. You are right; what i stated above is the Client Company's viewpoint.
I can understand that if candidates keep leaving the company within such a short period; the problem lies with the company.
I also understand that a Consultant can do virtually nothing to set things right here.
The only way out is to avoid such companies.
Warm regards.

Great!!! What irked me was the arrogance shown by the client in the demand.
They were just like a Bright Lamp, who were oblivious to the darkness beneath them.
Well thank you so much Mr.Raj. Point Taken. Cheers.

Hello,

So far so good!

We all learn lessons all the time.

In this situation, to add further, it appears to me that both of you are holding the reasons provided by the candidate as sacrosanct!

It is easy for the candidate to hide either own inadequacy in absorbing training inputs or possibly a better offer could have materialized where he was already being considered which none of us knew! He knows that within the "probation period if he leaves he has no consequences and he does not care if the Placement Agency is put in an awkward situation vis a vis the client. He also does not care one bit about the inconvenience the company may have to put up with in such a situation!

In short the possibilities that emerge are:

1) the candidate was a wrong selection-failure of the interviewers (not to apportion blame as this can happen not because of the process failure but due to candidate's peculiar personality!)

2) there is an unholy alliance between the Placement Agency and the company HR!

May be there are more possibilities but what bothers me is why such a conditionality (of free replacement) is accepted when the Agency has NO control over the employer-employer relationship once the candidate joins! It is (perhaps a theoretical) possibility that for the candidate leaving the employer alone is responsible-neither the candidate nor the Placement Agency!

What is the defense/justification for accepting such a conditionality needs explanation. Even if it is just the "competition" element in the trade, what are the Agency's safeguards? In any case if the "competition" forces the Agency to accept such irrational conditionality then such cases are to be treated as business risks as has been rightly pointed out! Or the Agency could have perhaps negotiated the deal in such a mannes that this kind of irrational conditionalities are not allowed in the contract!

I assure that what has been stated here is borne out by hard experience over the years!

Regards

samvedan

January 18, 2013

---------------------------

Hello Karan Dass,
This only reflects on the environment in the company.
The solution depends a LOT on--IF you value this company for a long-term relationship/association. If Yes, suggest go ahead & replace the II candidate too WITH A RIDER. Let them know that it's in THEIR interest to figure-out & analyze why 2 guys left @ such short durations. Also, make it clear that IF the III guy too leaves, you WON'T give another replacement.
Also, pl note that you are able to give 2 replacements ONLY because the guys were Freshers--what IF they were experienced or tough-to-get skilled guys? So pl make it clear that this WILL be a one-off response from your end & CAN'T be generalized for any later similar situation IF & WHEN it occurs [we have had such a case earlier with a long-standing client].
All the Best.
Rgds,
TS

Hi,
You've already got lot of response on this posting.
https://www.citehr.com/447400-free-r...cond-time.html
Avoid posting similar threads in different forum.

Dear Karan,
Satish has given suggestion to provide replacement for 2nd candidate as well. I have same opinion however, with some rider.
Before you provide 2nd replacement, I request you to talk to previous two candidates and ask why they left. If you find their exit was due to company's culture then better you do not provide replacement for 2nd candidate as well. Just tell the company that you are looking for the right replacement and you are not looking suitable person.
Tell them that since two candidates have left already, you wanted to be little more cautious this time. However, practically do not do anything. Let them hang on for few months.
Not providing replacement would mean forgoing the bill amount as well. But then no business can be run without some losses. Take the incident in your stride and move on.
Ok...
DVD


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