Marketing, technology and creative recruitment firm Luminoso is disrupting the recruitment industry with the launch of a new business model that puts its customers’ interests above short-term revenue.
Under the new business model, Luminoso will no longer bill its clients on the first day a successful candidate starts work.
Instead, it will share the risk by invoicing the recruitment fee at key milestones throughout the candidate’s first year with their new employer.
Think of it as Afterpay for recruitment plus an extended warranty, all rolled into one.
This is a stark departure from the standard recruitment agency model of charging employers upfront – on or before the candidate starts work – anywhere from 15 per cent to 30 per cent of a candidate’s annual salary.
Luminoso director Craig Letham said: “Almost every industry has been disrupted in the past 50 years, as technology and customer-centricity become integral to how we work, and we think our new model offers significant benefits around cash flow and risk.
“We also support each candidate we place by offering complimentary performance coaching, provided by a panel of external, trained coaches.
“This is entirely independent to Luminoso and the client organisation, with the coaches’ entire remit to support the candidate settle in and make it their best move ever.
“We want to transform the recruitment experience from a risky, costly exercise to a partnership where we can support our clients and candidates to succeed over the longer term.
“A short-term hire is a bad hire. At Luminoso, we work had to ensure we match the right talent to the right employer to last the test of time, and we’re happy to prove it by the way we charge for our services.
“If a candidate doesn’t stay, our clients don’t pay.”
Luminoso’s new business model comes into effect this week, offering agencies and corporate clients the benefit of their new employee as a member of the team for a full year before they pay the full cost of recruitment.