Zero-Risk Hiring: The Pay-On-Placement Model Explained

Last Updated: 2025

Introduction

Hiring top talent in today’s competitive market is challenging, especially for entry-level and mid-management positions in industries like healthcare, logistics, retail, and call centers. Businesses often face high costs, lengthy processes, and financial risks when using traditional recruitment agencies. Lumen Recruiting Group’s Pay-On-Placement (POP) model offers a transformative solution: no upfront costs, payment only after a hire stays for their gurentee period, and fees as low as 5-9%. This guide explores how our POP model can streamline your hiring process for roles such as Certified Nursing Assistants, truck drivers, retail managers, and customer service representatives, reducing both time and costs.

What is Pay-On-Placement?

POP is a contingency-based recruitment model where clients pay only after a candidate is hired and remains employed for a specified period, typically 30 days. Unlike traditional agencies charging 15-30% upfront, Lumen’s model aligns incentives with client success, ensuring quality hires without financial risk.

Benefits of POP

  • Cost Savings: Fees of 5-9% could save 55-75% compared to traditional 15-30% fees. For a $40,000 entry-level position, Lumen’s fee at 7% is $2,800, versus $8,000 at 20%, saving $5,200 per hire.
  • Risk Reduction: Payment is only due after the hire stays for 30 days, ensuring you only pay for successful placements, reducing the financial risk of bad hires.
  • Speed: Our advanced technology and expert recruiters aim to have offers extended to candidates as fast as 7 days, compared to industry averages of 30-49 days, critical for maintaining operations in high-turnover roles.
  • Time Savings for High-Volume Entry-Level Hiring: Even for entry-level roles considered easy to fill, high-volume hiring can consume significant TA team resources. Lumen handles sourcing and initial screening, potentially saving hours per hire. For example, recruiting 50 cashiers could take 250-500 hours internally, costing $6,250-$12,500 in TA time at $25/hour. With Lumen, your team can focus on strategic tasks like workforce planning, employee retention, or senior-level hiring, enhancing overall efficiency.
  • Flexibility: No long-term contracts allow you to scale hiring as needed, whether for a single role or multiple hires.
  • Quality: Rigorous screening ensures candidates meet your needs, reducing turnover and improving hire quality.

Roles We Specialize In

At Lumen Recruiting Group, we focus on recruiting for entry-level and mid-management positions across key industries. Our expertise allows us to source and place candidates efficiently, meeting the unique demands of each role. Examples include:

  • Healthcare: Entry-level roles like Certified Nursing Assistants (CNAs) and Licensed Practical Nurses (LPNs); mid-management roles like Nursing Supervisors.
  • Transportation and Logistics: Entry-level roles like Truck Drivers and Warehouse Associates; mid-management roles like Logistics Managers.
  • Retail, Food Service, and Hospitality: Entry-level roles like Cashiers and Servers; mid-management roles like Store Managers and Restaurant Managers.
  • Call Centers: Entry-level roles like Customer Service Representatives; mid-management roles like Call Center Supervisors.
  • Trades, Maintenance, and Repair: Entry-level roles like Electricians and Plumbers; mid-management roles like Maintenance Supervisors.

We specialize in these roles because they are critical to the daily operations and long-term success of businesses. Our Pay-On-Placement model is designed to meet the high-volume hiring needs of entry-level positions and the strategic demands of mid-management roles efficiently and cost-effectively, ensuring companies maintain operational continuity without the financial risks associated with traditional recruiting methods.

How It Works

  • Consultation: We discuss your hiring needs, whether for front-line staff like CNAs or mid-management roles like store managers.
  • Sourcing: Using a platform with over a billion resumes, we identify top candidates for your specific roles.
  • Screening: Candidates undergo thorough vetting. 
  • Hiring: You select candidates, and payment is due only after they stay through the guarantee period making it risk-free.

Lumen offers flexibility:

  • Full Recruitment: This service provides comprehensive support from sourcing candidates to placement and onboarding, ensuring a seamless hiring process. However, please note that background checks are not included and must be managed by the client.
  • Sourcing Support: Offers pre-screened candidates to talent acquisition teams, enhancing internal hiring processes.

Realistic Expectations

Lumen aims to be able to facilitate offers being extended within 7 - 14 days, significantly faster than industry averages (e.g., 49 days in healthcare, 30 days in retail). For example, in healthcare, where filling a CNA position typically takes 30-49 days, our rapid process could ensure staffing continuity. In retail, where entry-level roles take 20-30 days, Lumen’s speed could support peak seasons. Complex roles may take slightly longer, but our technology ensures efficiency. Fees are tiered (9% for 1-4 hires, 7% for 5-9, 5% for 10+), offering substantial savings.

Cost and Time Comparison

Metric

Traditional Agency

Lumen POP

Fee for $40,000 Hire

$8,000 (20%)

$2,800 (7%)

Payment Timing

Upfront or on hire

After 30 days

Time to Hire (Healthcare)

30-49 days

7-14 days

Time to Hire (Retail)

20-30 days

7-14 days

Conclusion

Lumen’s POP model offers a cost-effective, low-risk way to hire entry-level and mid-management talent, saving time and resources for your TA team. Contact us to explore our no-risk pilot program and see how we can transform your hiring process.

Call to Action: Schedule a consultation at [Lumen Consultation]([invalid url, do not cite]) to discuss your hiring needs.

Hypothetical Case Studies

The following case studies are hypothetical scenarios illustrating the potential benefits of Lumen’s POP model, based on industry data and our capabilities. They are not actual client results but reflect realistic outcomes achievable with our services.

Healthcare: Rapid Hiring of CNAs

Scenario: For example, a mid-sized hospital in Denver might need 10 Certified Nursing Assistants (CNAs) to address staffing shortages affecting patient care. Traditional agencies could quote 20% fees and estimate 30 days per hire, costing $80,000 for 10 CNAs at $40,000 salaries each.

Lumen’s Approach: By partnering with Lumen, the hospital could benefit from our POP model, paying a 7% fee only after a 30-day guarantee, with a target of offer within 7 days using advanced sourcing technology.

Potential Outcome: This could result in offering 10 CNAs in as little as 7-14 days, paying $28,000 ($2,800 per hire), saving $52,000 (65%) compared to traditional agencies, and ensuring uninterrupted patient care.

Transportation and Logistics: Swift Hiring of Truck Drivers

Scenario: Imagine a logistics firm needing 10 truck drivers to meet seasonal shipping demands. Traditional agencies might charge 20% fees and take 30 days per hire, costing $110,000 for 10 drivers at $55,000 salaries.

Lumen’s Approach: Lumen’s POP model could offer a 7% fee and aim to hire within 7 days, leveraging a vast resume database for quick sourcing.

Potential Outcome: The firm might offer 10 drivers in 7-14 days for $38,500 ($3,850 per hire), saving $71,500 (65%) and meeting shipping deadlines efficiently.

Retail, Food Service, and Hospitality: Efficient Hiring of Cashiers

Scenario: Consider a retail chain needing 15 cashiers for a new store opening. Traditional agencies could quote 20% fees and 30 days per hire, costing $90,000 for 15 cashiers at $30,000 salaries.

Lumen’s Approach: Lumen’s POP model might provide a 7% fee and 7-day hiring, ensuring rapid staffing.

Potential Outcome: The chain could hire 15 cashiers in 7 days for $31,500 ($2,100 per hire), saving $58,500 (65%), enabling the store to open on schedule.

Trades, Maintenance, and Repair: Quick Placement of Electricians

Scenario: For instance, a construction firm might require 5 electricians for a time-sensitive project. Traditional agencies could charge 20% fees and estimate 30 days, costing $60,000 for 5 electricians at $60,000 salaries.

Lumen’s Approach: Lumen’s POP model could offer a 7% fee and target 7-day hiring, sourcing skilled candidates efficiently.

Potential Outcome: The firm might hire 5 electricians in 7 days for $21,000 ($4,200 per hire), saving $39,000 (65%), keeping the project on track.

Call Centers: Rapid Hiring of Customer Service Representatives

Scenario: Picture a call center needing 20 customer service representatives to handle increased call volumes. Traditional agencies might quote 20% fees and 30 days, costing $160,000 for 20 reps at $40,000 salaries.

Lumen’s Approach: Lumen’s POP model could provide a 7% fee and 7-day hiring to maintain service levels.

Potential Outcome: The call center could hire 20 reps in 7 days for $56,000 ($2,800 per hire), saving $104,000 (65%), sustaining high service quality.

Ready to Transform Your Hiring?

Schedule a call to explore Lumen’s no-risk pilot program.