What happens if a placed candidate quits early?

It’s every hiring manager's worst nightmare: you’ve successfully placed a candidate, invested time and resources in onboarding, and just when things are starting to click, the candidate quits.

While early turnover can be frustrating, it’s not an uncommon issue that businesses face. So, what should you do when a placed candidate decides to leave before their role has fully developed?

In this blog, we’ll explore why candidates quit early, its impact on your business, and the recruitment agency's role in managing the situation. We’ll also discuss the steps you can take to minimise the risk of early turnover and keep your hiring process on track.

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Why do candidates quit early?

Aligning with the candidate on the importance of starting and completing a project is crucial. Emphasising this commitment not only ensures the candidate stays engaged from start to finish but also enhances their reputation in the market, increasing their chances for future opportunities.

Juliana Mader - Recruitment Coordinator at Airswift

Understanding the common causes can help employers address underlying issues. Here are some of the primary reasons why candidates may quit before reaching the end of their probation or initial contract:

1. Lack of cultural fit: Sometimes, even if a candidate has the right skills, they may find it difficult to adapt to the company culture. A mismatch in values or working style can lead to dissatisfaction, pushing the candidate to leave early.
   
   
2. Better opportunities: In highly competitive industries, candidates may receive a more attractive offer elsewhere after accepting a position. A higher salary, better benefits, or more exciting prospects can entice them to quit prematurely.
   
   
3. Unclear expectations: If a candidate’s role or responsibilities weren’t clearly communicated during the hiring process, they may feel unprepared or frustrated. Unmet expectations on either side can result in a quick exit.
   
   
4. Personal reasons: Life changes, health concerns, or family commitments such as caregiving responsibilities can lead to an unexpected departure. 
   
   
5. Poor onboarding experience: An inadequate onboarding process can make a new hire feel unsupported or disengaged. If the candidate doesn’t feel equipped to succeed in their new role, they may decide to leave early.

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How does that impact your business?

One of the first consequences is the disruption to your workflow and productivity. Losing a team member, especially early on, can create a significant gap that affects ongoing projects. If the role was integral to the team, other employees may have to take on additional tasks, leading to delays and strain on resources, ultimately reducing overall productivity.

The financial implications are another important consideration. Recruiting, onboarding, and training a new hire require time and money. When a candidate leaves prematurely, those investments are essentially wasted. 

Additionally, businesses may face administrative costs if they terminate a contract early due to early turnover.

In some cases, early turnover can damage client relationships and affect the quality of service provided. If the departing employee had client-facing responsibilities or was involved in key projects, their exit could result in delays or decreased service quality. Clients might perceive the business as unstable, which can undermine trust and damage long-term relationships.

What happens to the recruitment fee?

One of the most frequently asked questions when a placed candidate quits early is: What happens to the recruitment fee?

The non-refundable nature of recruitment fees is a common practice, but this doesn’t mean businesses are left without options. Here's how recruitment agencies generally handle the situation:

Non-refundable fee: Recruitment agencies typically charge non-refundable fees, which cover the time, effort, and resources invested in sourcing and vetting candidates. Once the process begins, these costs are incurred, and so the fee remains due, even if the candidate leaves early.

Replacement guarantee: While the recruitment fee is non-refundable, many agencies offer a replacement guarantee. This allows businesses to request a replacement candidate if the hired individual leaves within a specific time frame (usually 30 to 90 days). The agency typically searches for a new candidate without charging an additional placement fee, though this replacement process may take time.

Contract terms and conditions: What happens when a candidate quits early should be outlined in the contract between the agency and the client. It’s important to review the terms carefully before engaging with an agency to understand the conditions for any guarantees or replacement offers. Some agencies may provide more comprehensive support, such as a longer replacement window, while others may have stricter terms.

While the non-refundable nature of recruitment fees might seem like a loss, the option to receive a replacement candidate and the agency's expertise in finding the right fit can help mitigate the impact of early turnover.

How can recruitment agencies help in this situation?

When a placed candidate quits early, recruitment agencies can offer significant support in managing the situation. While the non-refundable fee might seem like a disadvantage, the real value comes from the services and expertise agencies bring to the table, especially in navigating early turnover.

Firstly, recruitment agencies provide replacement services. Many agencies offer a replacement guarantee within a set period, which typically ranges from 30 to 90 days, depending on the agreement's terms and the position's urgency.

Secondly, recruitment agencies bring expertise in candidate re-engagement. If a candidate quits early due to an issue that could have been addressed, such as misalignment of expectations or a lack of role clarity, agencies can assist in understanding what went wrong. This feedback can help refine the recruitment process, ensuring future placements are more successful. 

Moreover, recruitment agencies have extensive candidate networks, particularly valuable in times of high turnover. Their established networks allow them to quickly identify and reach out to suitable candidates, including passive candidates who may not be actively looking but are open to new opportunities. This enables agencies to move quickly and efficiently to fill the vacancy and avoid prolonged disruption to your business operations.

What can I do to minimise early turnover?

While some turnover is inevitable, there are four steps you can take to reduce the likelihood of a candidate quitting early. By implementing clear strategies from the start, you can create a more stable and productive environment for both the employee and the business.

Ensure clear communication of role expectations: Often, early turnover occurs because candidates feel that their responsibilities or goals weren’t communicated during the hiring process. Ensuring that the role’s expectations, goals, and requirements are thoroughly discussed with the candidate will help avoid misunderstandings and ensure the candidate knows what is expected of them from day one.

Thorough interviews and assessments: Employers can better understand whether a candidate is truly suited for the role and company culture by using detailed interview questions, skills assessments, and personality tests.

Effective onboarding: This is another critical area that can significantly impact early turnover. Investing in a strong onboarding programme ensures that new employees feel supported and integrated into the team from the start. That includes training, introducing them to team members and providing regular feedback.

Regular check-ins: During the early months of employment, this can help identify any concerns before they lead to resignation. Check-ins would allow managers to address issues early on and make necessary adjustments to ensure the employee’s satisfaction.

Facing early turnover? We can help you find the right fit

With our expertise in recruitment and access to a wide talent pool, we can quickly provide replacements or assist in finding the right fit for your business.

Don't let early turnover impact your operations, contact us today, and we’ll work with you to ensure you get the right talent, fast.