The Definition of a Replacement Guarantee

A replacement guarantee is a written commitment from an executive search firm to conduct a replacement search at no additional fee if the placed candidate leaves or is terminated within a defined period from their start date. At Majhi Group, the standard guarantee period is 90 days. The guarantee applies to involuntary departures and most voluntary ones, with specific exclusions that are defined in the engagement agreement.

The replacement guarantee is not an insurance policy — it is a confidence signal. A firm that offers a 90-day guarantee is committing to the quality of its assessment, the accuracy of its fit evaluation, and the depth of its onboarding involvement. A firm that does not offer a guarantee is signalling something different.

What the Guarantee Covers

01

Involuntary departure within 90 days

If the placed candidate is let go within the guarantee period — for performance, fit, or any other reason — the firm conducts a full replacement search at no additional fee beyond expenses.

02

Voluntary departure from fit failure

If the candidate resigns within the guarantee period due to a mismatch that the search process should have surfaced — role misrepresentation, cultural mismatch, operating-style conflict — the guarantee typically applies.

What the Guarantee Typically Does Not Cover

01

Role or company change

If the client materially changes the role's scope, reporting structure, or compensation after the candidate joins — and the candidate leaves as a result — the guarantee typically does not apply.

02

Force majeure events

Company closure, acquisition, or workforce reduction that results in elimination of the role typically falls outside the guarantee period.

Replacement Guarantee: Majhi Group Standard

Guarantee period90 days from candidate start date
Additional fee for replacementNone — expenses only
Guarantee invoked rate (Majhi Group)Rare — quality of assessment prevents most failures
FormatWritten, in engagement agreement

"The guarantee exists not because we expect to use it — but because it structures our incentives correctly. A firm that offers a 90-day replacement guarantee has a reason to assess candidates rigorously, manage onboarding carefully, and remain engaged post-placement. A firm with no guarantee has no such reason."

The Guarantee as a Quality Signal

Before engaging any executive search firm, ask directly: do you offer a written replacement guarantee, and what are the terms? A firm that hedges, qualifies extensively, or declines is telling you something about how confident they are in their process. A firm that offers it clearly, in writing, with defined terms, is demonstrating that their incentives are aligned with yours.