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A rebate is a scale, not a refund.

It decides what a clawback actually owes.

Before any money moves, the rebate scale already exists: the sliding percentage, agreed in the terms of business, that decides how much of a placement fee is repayable and when.

recruiter-lexikon / rebate
R
Rebate
Rebate
Defined
Definition

The sliding scale in the terms of business that fixes what percentage of a placement fee is repayable if a candidate leaves within the guarantee period. It is the schedule, not the repayment itself.

At a glance
Term Rebate
Used for Setting the repayable percentage of a fee
In boilr Stored with every account's commercial terms
b
boilr turns this term into a task
Defined here · operationalised by your AI employee

Rebate, explained for the desk.

What it is, why it matters, and how your AI employee runs it.

What it is

A rebate is the sliding scale in a recruitment agency's terms of business that fixes what percentage of an already-paid placement fee is repayable if the candidate leaves within the guarantee period. It is a schedule, not a transaction: a table or formula that reads something like 100% in the first couple of weeks, stepping down in stages until it reaches zero by the end of the guarantee window. The scale is what gets negotiated line by line before a contract is signed. The actual repayment, if one is ever triggered, is a separate event called a clawback.

Most rebate scales step down in tiers rather than dropping off a cliff. A candidate who leaves in week one exposes the agency to close to the full fee; one who leaves in week ten of a twelve-week guarantee exposes it to a small fraction or nothing at all. Some agencies run a flat rebate instead, the same percentage for the whole guarantee period, but a taper is the more common shape because it treats a placement that nearly worked more gently than one that failed on day two.

A rebate is the scale a client agrees to. A clawback is what happens when it gets used.

Why it matters

The rebate scale is one of the first things a prospective client's finance or procurement team reads in a set of terms of business, and it gets negotiated almost as hard as the headline fee percentage. A shallow scale that drops to zero after two weeks protects the agency's cash but can put clients off; a generous scale that stays high for eight or ten weeks wins business but raises the agency's real exposure on every placement it makes. Getting the scale wrong in either direction shows up months later, either in lost pitches or in fee repayments nobody budgeted for.

Because the rebate scale differs by client, and sometimes by role type within the same client, it needs to be tracked precisely, not remembered approximately. An agency that cannot say exactly what percentage applies to a placement made six weeks ago is negotiating its next set of terms blind, and cannot tell a consultant with confidence what a given departure will actually cost.

How boilr handles it

boilr does not set your rebate scale, that stays a commercial conversation between consultant and client, but the moment terms are agreed, the scale and the guarantee period it runs against are recorded in the Company Brain alongside the rest of that account's commercial terms, so it is never left sitting in a signed PDF nobody reopens.

Because the scale is stored precisely, boilr can tell you exactly what a placement is still exposed to at any point in its guarantee period. If a departure or job-change signal fires on a candidate the scale still applies to, your AI sales employee surfaces the exposure the same day, rather than after the client's finance team has already worked it out.

Questions, answered.

Everything a working consultant asks about rebate, and how boilr puts it to work.

What is the difference between a rebate and a clawback?

They sit in the same clause and get used almost interchangeably, but they answer different questions. A rebate is the scale itself: the percentage of the fee that's repayable, set out against how much of the guarantee period has run. A clawback is the event that scale produces, the agency actually handing money back once a candidate leaves and the rebate says a percentage is owed. There is no clawback without a rebate scale to calculate it against.

How does a rebate scale typically taper over a guarantee period?

Most rebate scales are front-loaded: close to full repayment in the first couple of weeks, stepping down every few weeks until they reach zero by the end of the guarantee period, commonly somewhere between eight and twelve weeks. Reed's published terms, for example, rebate 100% within the first two weeks and 50% between weeks two and eight. The exact steps vary by agency and client, there is no single industry-wide formula, but the front-loaded shape is close to universal.

Does the rebate scale stay the same across every client?

No, and it usually should not. Enterprise clients with procurement teams often negotiate longer, more generous scales as a condition of doing business, while smaller or faster-moving clients may accept a shorter one. A desk running several accounts can easily be carrying half a dozen different scales at once, which is exactly why a spreadsheet or an inbox is the wrong place to keep track of them.

Can an agency refuse to offer a rebate at all?

In principle yes, terms of business are negotiable, but in practice almost every client expects some form of rebate or a free-replacement alternative before they will sign. An agency that offers neither is asking a client to accept all the risk of a bad hire alone, which is a hard sell outside a genuinely candidate-short market.

How does boilr use rebate in practice?

boilr records the rebate scale and guarantee period together in the Company Brain the moment terms are agreed, so the exact percentage attached to any placement is always a lookup, not a guess. If a departure or job-change signal fires while that scale still applies, your AI sales employee flags the exposure the same day, before it becomes a clawback conversation with the client.

Helen Wright
Boilr gave us the BD structure and follow-up support to sign our first client and secure a job brief in under a month.
Helen Wright
Managing Director, 923 Jobs

Know exactly what every rebate scale is still worth.

boilr keeps every rebate scale and guarantee period in the Company Brain, so exposure is a fact, not a guess. One AI sales employee per consultant, watching every placement until the scale runs out.