Insurance on Candidates

I noticed this company ExecuSure today, which acts as sort of insurance policy for recruiting. As I understand it, if a recruiter places a candidate and that candidate quits after 2-3 months, ExecuSure refunds the employer the recruiting fee. The company says that this is “the first 12-month, money-back guarantee ever offered on recruitment fees paid by employers to recruiters.”

Your thoughts?

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5 Comments on “Insurance on Candidates

  1. My thoughts are all questions. If Harry tastes it and it doesn’t make him sick , I’d check it out. Though I’ll say that this is such a low grade concern for us that if the price is more than something like $20 on a 25k deal we’d probably pass. Idea sounds great….but lots of questions the answers to which I’d rather let someone else post.

  2. And, of course, THE most frequently asked question is not in their FAQ. Someone please post the price formula… 🙂

  3. Hi, I just want to chime in here in an effort to clarify things and to hopefully answer some questions for all recruiters out there. I am the creator and founder of ExecuSure, and President of The Prosppector Group. Prior to inventing ExecuSure, I was with Management Recruiters Of Park City and worked as a recruiter specializing in consumer packaged goods. And I created ExecuSure in an attempt to help me differentiate myself from my fellow competitive recruiters. Now, after seven years in the development stage, to the best of our knwoledge, when a candidate flames out, most recruiters are very reluctant to provide a full refund or their fees to clients. And we understand why as we were one of those recruiters. From the recruiters viewpoint, they did their job in finding the candidate; and besides, the employer is the ultimatle hiring decision authority and thus selects the actual candidate from all of those presented to them. But when the candidate quits, unfortuantely, the employer feels often turns to the recruiter and says the recruiter msut work on replacing the failed candidate. Thus,recruiters find themselves often conducting a second search for no fee paid. This makes the second search very unpleasant and unprofitable. ExecuSure was created to take out any fault finding between employers and recruiters, and to provide a full, 100% refund to clients without recruiters having to fund any of the remibursement. ExecuSure simply views the hiring process as an insurable event wherein there can be a real loss involved. This loss is also quantified just as with any other insurable property or event. The premium for policy is set by ExecuSure underwriters and is based upon three key variables:

    1) Years of experience on the part of the specific recruiter involved. Three brackets of underwriting are 1) Less than one year in industry of recruiting; 1-3 years; and 4+ years of recruiting experience.
    2) Dollar amount of fee involved. First tier is minimum fee of $10,000 up to a placement fee paid t the recruiter of $22,999. Second tier is $23,000 placement fee to $35,000.
    3) Whether the recruiter and employer want a 60 day or 90 day deductible period.
    As a general guideline, the premium cost is 10-15% of the actual recruitment fee. So a $15,000USD placement fee could be covered by ExecuSure for about a $1500 premium cost.

    Obviously that will not work for you Dave, but thus far, hiring authorities ahve quickly grasped the value and have been more than willing to pay the premium. As a recruiter, you have absolutely nothong to lose as the premium is built directly into your fees, and then fully paid by the employer. As an example, here is how ExecuSure was recently presented by one recruiter to their client: they simply ask their client whether they would prefer to pay them a 20% recruiting fee and receive a 60-90 day candidate replacement warranty with no promise of an actual candidate being found, and certainly no refund of the fee. OR alternatively, they could elect to pay 23% for the fee versus 20% and receive ExecuSure protection in the form of a full, 12-month, money-back refund if the candidate flames out, dies, or even becomes physicallly or mentally disabled? They let their clients decide what to pay and in turn what to receive as a warranty on servioces. So you all may wish to try it out and let your clients decide. For more information, please feel free to email us at information@prospectorgroup.com. Hope this helps.

  4. Sorry about all the typos in my prior posting (hard on a Blackberry in the car). But I also want to provide you the link to our website where you can apply on-line and you’ll receive your actual cost quote from our underwriters. Please simply click on the ExecuSure tab section of our web link. Our web link is http://www.prospectorgroup.com. The Apply Now button appears throughout the ExecuSure section of our site. Thanks!

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