Why Do Recruitment Firms Offer a 3-Month Candidate Stability Warranty? Seeking Insights

Hello all,

I recently started a recruitment firm. I searched in the search box and in different discussion categories, but could not find it.

1. I want to know why candidate stability warranty (candidate replacement guarantee) is given?
2. Why is the stability warranty a standard 3 months?

Hi,

Generally, a 3-month warranty is provided to ensure that the candidate will work for the company on our behalf. What if the candidate leaves after 1 month when you have already paid the recruiting charges? Also, 3 months is standard because usually in IT companies, the notice period is 3 months. In case the candidate leaves without serving the notice period, placement consultants are responsible for the replacement. In non-IT firms, the guarantee (not warranty) is for 1 month.

3 months' notice means the firm believes that within 3 months, they will be able to find a replacement so that their work will not be affected. Therefore, if a candidate leaves without notice, we must provide an immediate replacement to ensure that their work does not suffer.

In the case where the company has a 1-month notice provision, we should offer a 1-month stability guarantee.

How do guarantee and warranty differ in this case?