What is staff augmentation? Why it’s essential for your company?
You can get the required professionals for your company without exceeding your budget. Sounds interesting, doesn’t it? Staff augmentation is an outsourcing model that helps increase the staff for a specific client or project. It is not the traditional long-term hiring and instead depends on the duration of the project or the hiring company’s needs. Mostly, professionals working remotely are hired during staff augmentation for their expertise. They are responsible for a specific project or client only. Other specifications also vary according to the situation at hand. There are three types of staff augmentation models:
- Core augmenatation (long-term contract)
- Functional augmentation (temporary assistance)
- Temporary staff augmentation (short-term contract)
Staff augmentation services are becoming quite common now as companies move towards remote jobs. Additionally, many startups are now considering the digital services required in every field. Therefore, remote jobs with polished skills help companies hire staff at a lower cost.
Benefits of staff augmentation for your company
Following are some of the known benefits of staff augmentation.
In times of lower workload, you can easily decrease the staff as well. When you get more projects, the staff can be increased as per the needs. It helps in maintaining the budget without having a high per head cost. Similarly, you can also take on more projects due to staff augmentation as the staff will be available anytime your workload increases. Most companies have to let go of a few projects due to the shortage of staff and insufficient funds to bear the cost.
Lower overhead cost
Since augmented staff isn’t included in the full-time workforce, their overhead cost is relatively lower. More so if they are working remotely. Their seating, laptop, transportation, etc costs are not present. Therefore, they are not heavy on the company budget. Since augmented staff work on a project or contract basis, the company can analyze their needs and end the contract when they don’t need them or can’t afford them.
Easy to manage
Staff augmentation is entirely different from outsourcing. You are not giving away a project to get it done, rather you are sort of renting professionals to cater to your projects/clients. Therefore, you still have full control over the project and the way you want it to be completed. It is easier to manage and maintain quality. When you outsource a project, you cannot ask them to do it a certain way. As everyone has their own way of doing a job and you cannot dictate to anyone. As compared to when you have control over it, you will get to decide the whole process.
Better employee retention
The most important and unique benefit of staff augmentation services is the employee retention rate. Companies who regularly augment staff, have higher employee retention and their employees have high morale and work motivation. It is because the core team is not overworked. They do their job in peace in a set period of time with a relaxed mind. There is not a ton of pending work constantly making them anxious and draining their mental energy. Happy employees make a company successful with their focus and quality of work.
Difference between staff augmentation and hiring a freelancer
Technically, both sound similar. However, both are different with separate aims and processes.
- In staff augmentation, you deal with a company and they assign you a team. Whereas when working with a freelancer you are dealing with an individual directly. Most companies go for staff augmentation instead of freelancers because of the perception of better accountability. Even though times have changed and some extremely dedicated and motivated individuals are also working as freelancers.
- Most of the staff augmentation providers offer insurance services against fraud, cybersecurity risks, general liabilities, errors, etc. Whereas freelancers don’t offer proper insurance.
Staff augmentation is an excellent way to increase the productivity of your company overall. You can not only take on more projects but also help your employees less burdened and more relaxed. In staff augmentation, the company is not responsible for training the professionals as it is done by the providers. You can focus on generating more revenue by increasing sales. As for the staff is concerned, they can focus on specific projects and give their 100%. While the augmented staff can handle other projects.