What is Staff Augmentation? A New Trend in Tech Recruitment

Oct 11, 2016

Staff augmentation is quickly becoming a buzzword in the IT job market characterized by raging competition for highly skilled engineers.

What Is Staff Augmentation?

Staff augmentation is defined as a strategy for filling the so-called ‘skills gap’ that allows companies to engage top-level professionals for individual projects without having to incur the same costs of hiring new full-time employees.

IT staff augmentation vendors help you add skilled technical resources to your in-house development team on a short- or long-term basis. These resources are employed directly by the vendor, thus eliminating the cost and liability of making new full-time hires. That being said, remote developers hired through a staff augmentation firm are managed by the client they work with, and are typically dedicated to one project at a time.

Staff augmentation benefits, hiring remotely, offshore teams.

What Problems Can Staff Augmentation Solve?

1. Geographical Limitations

In a survey of nearly 800 employers across 29 US states and three Canadian provinces, 83 percent of respondents reported a shortage of highly-skilled technical employees in their local labor pool.

The demand for developers and other tech specialists is growing faster than the supply, and many companies are having a hard time attracting the right talent locally.

Staff augmentation presents a very effective solution for this problem, as it allows you to connect with developers located in other countries without actually having to look for them yourself. You’ll just need to give your detailed requirements to the vendor providing staff augmentation services, and then choose the best candidates out of those the vendor pre-selects.

2. Too Much Time Spent on Recruitment

Recruitment is a very time-consuming process that can take months, especially if you’re looking for rare skills or you don’t have a whole team of people dedicated to filling your vacancies. Things get even more complicated if you decide to venture out and look for candidates who live in a different part of the world.

Staff augmentation companies can help you reduce your time-to-hire from months to weeks, or even days. Such companies normally keep extensive and regularly-updated databases of tech workers, so it’s likely that they’ll be able to match you with the right candidate a lot faster than if you were conducting the search yourself. You’ll be able to save plenty of time and jump straight to interviewing the most promising candidates.

One more important point when considering the merits of staff augmentation firms that provide recruitment services is that they have access to passive candidates. This type of candidate may be employed or uninterested in pursuing a new job at the moment, but might reconsider once they hear about what you have to offer. This means your chances to hire a great developer are even higher.

3. Infrastructure Investment

The high demand for tech talent means that businesses will go a long way to get the best ones. While that’s great for software engineers, the downside is that tech companies often have unusually high employee turnover rates.

When you hire a software developer, you almost always need to invest in new equipment, software, subscriptions, licenses, rent, furniture, office supplies, and a ton of other things that cost money. Over time, these costs add up to a pretty substantial figure. In an environment where developers are free to change jobs as often as they please, these investments can get too expensive to handle.

Staff augmentation helps you avoid all of these investments, since office facilities, work stations, and support staff are all provided by the staff augmentation vendor. Even if the developer you hire through the staff augmentation model decides to leave shortly after they joined your company, you don’t end up with stagnant infrastructure investments.

4. Employment Benefits

Infrastructure is just one in a long list of expenses that come from adding new full-time employees to your team. Another big one is employment benefits. Bonuses, insurance, and social contributions significantly increase the real cost of hiring new people.

With staff augmentation, you no longer have to pay for employee benefits, since technically your developers are employees of the staffing provider. Of course, the provider will charge a fee for their services, but it will almost certainly be a lot lower than what you’d have to pay if the developers were on your payroll.

About Daxx

Daxx helps you hire web developers in Ukraine, and provides all of the infrastructure and administrative support you need to run a team smoothly. Give us your requirements, and our recruiters will get back to you with candidates that fit your needs.

You interview, approve, and manage your developers, while we:

  • Take care of office space, workstations, and all the necessary hardware and software
  • Help you build productive work relationships with your developers from day one
  • Make sure your developers stay happy inside your team
  • Handle payroll and taxes

Find out why our model works better than outsourcing, or learn more about services we offer.

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