Recruiting Firm Guarantees Compared: Replacement Terms Founders Should Ask For (October 2026)

A recruiting firm guarantee is only as good as its conditions. The two common types are a replacement guarantee, where the firm finds a new candidate at no extra fee if a hire leaves, and a refund guarantee, where the fee is returned. Recruiting from Scratch includes a replacement guarantee as standard on contingency searches. Read the conditions, the clock and the exclusions before you sign any firm's terms.

Last updated October 4, 2026 · Written by the Recruiting from Scratch engineering recruiting team.

Want a replacement guarantee on your next engineering hire? Recruiting from Scratch sends 3–5 qualified engineers, on contingency. Book a 15-minute call → or Get a shortlist of 3–5 engineers →

How we compared

Because every firm words its terms differently, we do not compare named firms here. We judge any guarantee on five criteria:

Remedy: replacement search, refund, or a partial credit.
Clock: when the guarantee starts and how long it runs.
Triggers and exclusions: which departures count.
Your obligations: what you must do to keep the guarantee valid.
Mechanics: how fast the replacement starts and who pays for what.

Recruiting from Scratch publishes this guide and offers a replacement guarantee, so we favor that remedy for engineering hires and explain why. We make no claims about other firms' terms; ask each for theirs in writing.

The guarantee types at a glance

Type	What the firm does	Your cost if a hire leaves	Typical conditions	Best when	Watch out for
Replacement guarantee	Runs a new search for the same role	No second fee	You pay on time; role unchanged	You still need the seat filled	Narrow exclusions
Refund guarantee	Returns the fee, in full or part	Fee back, no new candidate	Often shorter, tied to a payment schedule	You may not rehire the role	Slow refunds, partial amounts
Credit guarantee	Gives a credit toward a future search	Credit, not cash	Credit may expire	You will use the firm again	Expiry and scope limits
No guarantee	Nothing	Full cost	None	Almost never	Ask why

Replacement vs refund: which fits an engineering hire

For engineering, a replacement guarantee usually serves you better. If a senior engineer leaves in the first months, you do not want money; you want the seat filled before your roadmap slips. A refund returns cash but leaves you restarting a search alone, while a replacement keeps a recruiter working. A refund suits a role you may not backfill, such as a one-off project hire.

Be precise about what counts as a departure. Resignation and termination for performance are the usual covered cases, while a layoff, a role you eliminate or a hire you move to a different job normally is not. These distinctions are fair; they are only a problem when they are hidden.

Conditions that quietly void a guarantee

Late payment: many contracts void the guarantee if the fee is not paid on time.
Changing the role: a hire who is moved to a different level or team may fall outside the terms.
Relationship breakdown: guarantees often exclude departures caused by a change in compensation, location or duties you imposed.
Rehiring a candidate: some contracts have rules about candidates you already knew.
Notice: you may have to tell the firm promptly when a hire leaves.

What to put in the contract

The clock: state the start date (first day of work, not offer acceptance) and the length in days.
The remedy: name replacement or refund, and what happens if no suitable replacement is found.
Replacement mechanics: how quickly the new search starts and who owns the candidate pipeline.
Exclusions: list them, and make sure a layoff or restructure is the only major one.
Fee protection: confirm there is no second fee for the replacement.
Ownership: define how long a submitted candidate is tied to the firm, which matters when you use more than one firm. Our contingency vs retained guide covers how fee structures interact with these terms.

Choosing between recruiting agencies on guarantee terms

When you compare recruiting agencies, put their guarantees side by side in one table before the intro calls end. Ask each firm four questions: What is the remedy? When does the clock start? What is excluded? Can I see the clause? A confident firm answers in writing within a day.

Weigh the guarantee against what comes before it. A guarantee protects against a hire that fails; it does not make up for a weak shortlist. Quality at the front, meaning a shortlist of qualified candidates rather than a stack of resumes, avoids most early departures. Our Series A recruiter guide shows what to look for in the process, and the Series C and D guide covers larger contracts.

How a replacement guarantee works in practice

Recruiting from Scratch works on contingency with no retainer or upfront cost, and a replacement guarantee. If a placed engineer leaves within the guarantee period set in your contract, we find you a new candidate at no additional cost. We've placed forward-deployed engineers at Cinder, backend and machine-learning engineers at Mercor, and an agent software engineer in New York at Decagon. The guarantee is a backstop; the shortlist, with 3–5 candidates who fit your stack, stage and budget, is how we try not to use it.

When not to rely on a guarantee alone

The firm has no engineering depth: a generous guarantee on a poor match still costs you months.
The terms are vague: if the clock, remedy or exclusions are not in writing, treat the guarantee as absent.
You will not hire again: a credit is worth little, so prefer a replacement or refund.
The role is a C-suite hire: retained search has different terms, so evaluate it separately.

Frequently Asked Questions

What is a recruiting firm replacement guarantee?

A promise to run a new search at no extra fee if a placed hire leaves within a stated period for a covered reason, such as resignation or termination.

Is a replacement guarantee better than a refund?

For most engineering hires, yes, because you still need the seat filled. A refund fits roles you may not backfill.

How long should a guarantee last?

There is no universal length; periods are set in each contract. Compare any firm's period alongside its conditions and exclusions.

What voids a recruiting firm guarantee?

Common causes are late payment, changing the role, layoffs and restructures, and failing to notify the firm promptly. Ask for all exclusions in writing.

Does Recruiting from Scratch charge a second fee for a replacement?

No. Replacements under the guarantee carry no additional fee, and searches are contingency-only with no retainer or upfront cost.

Hiring engineers?

Recruiting from Scratch sends a shortlist of 3–5 engineers who fit your stage, stack and budget, on contingency with a replacement guarantee.

Get a shortlist of 3–5 engineers → or Book a 15-minute call →

Looking for a role at a venture-backed startup instead? See the engineering roles we're hiring for now →

Sources

U.S. Bureau of Labor Statistics, Occupational Outlook Handbook: Software Developers
Carta: startup hiring and compensation data
Contract guidance: general industry practice; always have counsel review your own agreement.