How Your Business Can Save On Costs Through Staff Augmentation Services
INTRODUCTION
In today’s fast-paced business landscape, companies are constantly looking for ways to improve their bottom line and stay ahead of the competition. One effective solution for achieving these goals is staff augmentation services, a flexible and cost-effective way to manage workforce needs.
Staff augmentation is an outsourcing strategy that is used to staff a project and respond to the business objectives. The technique consists of evaluating the existing staff and then determining which additional skills are required.
For growing businesses and startups, the shortage of great talent is one of the most common challenges. But is there any solution to skip the struggle of recruiting more workforce?
Enter Staff augmentation services.
THE RISING COST OF RECRUITMENT
There are plenty of costs involved in recruiting someone at each step of the hiring process. Starting from job posting, ad creation, and advertising, to publishing. Even listing particular resource requirements involves a substantial cost.
Since traditional hiring and recruiting practices can be quite a time and cost-consuming task, more and more businesses are starting to look for more efficient and flexible ways of recruiting.
In this article, we’ll explore the benefits and advantages of staff augmentation services and how it can help businesses save on costs, reduce risks, and improve their bottom line. So if you’re looking to improve your workforce strategy, read on to learn more about the power of staff augmentation.
No need for special training once hired
Normally companies have to spend time training candidates. But that’s not the case with staff augmentation. The augmented staff is already a highly skilled professional, providing a sort of ‘plug and play’ advantage. He or she can be tested on requisites and then quickly onboarded right on the project. There is a negligible cost of training.
Bringing in the right resource immediately
With Staff Augmentation, you always have a remote working strategy in place which can give you plentiful options to select the perfect candidate. You can expand your talent pool across the globe and distance here is not a problem anymore. With a bigger talent pool, there are more options at a fraction of the price. Hence, when hiring through a staff augmentation agency, the chances of getting the right team exponentially go up.
Less money spent on the continuity of operations
There can be various situations for which the company must be prepared. For instance, the Covid-19 pandemic situation affected multiple companies. Therefore, businesses must be prepared with a plan to operate without hindrance, even after the workflow breaks down.
With augmented staff, you don’t need to spend money on insurance, perks and other investments. In addition, as the augmented staff is working under a process, external hindrances may not affect them
Recruitment happens within a short time frame
Planning out hiring a single resource can be a time-consuming task. You have to chart down the employees’ job descriptions and expectations, run multiple rounds of interviews and coordinate with the team. Post-hiring, apart from salary, you have to consider other facilities and resources such as insurance, taxes, additional benefits, etc.
After recruiting the team member, you must look after the onboarding process. This adds up to investing a lot of time and money in a single employee to be hired.
Reduction of payroll costs according to location
Staff augmentation gives you the option of hiring globally thus reducing payroll costs according to location. There are several countries in Asia for example where you can avail of augmentation services and reduce payroll costs. The reason behind the scenario is that the cost of living is lesser than in European countries.
Tax burned can be eased
Based on the company’s location, it will have to incur specific taxes to maintain its company operations. Different factors affect the tax payments for businesses. This includes salaries, properties and sales.
Thus, staff augmentation can save a lot for the business. Usually, staff augmentation contracts have all fees bundled together, so there are no separate costs.
Save on office costs
Setting up a physical office is a difficult and expensive task. Most businesses mitigate these costs by enforcing strategies like BYOD (bring your device). However, there are still costs like reimbursement to settle the expenses for all parties involved.
Staff augmentation allows businesses to avoid technical costs and hefty internet charges and the cost of renting out office space and equipment.
Flexibility
Staff augmentation services provide the flexibility to adjust the size of the workforce as needed, so businesses only pay for the resources they require at any given time. If you are gearing up for a project launch, you can augment your in-house staff for the duration of that project and when it’s done, you don’t have to worry about stretching your resources.
Save on benefits costs
Another way staff augmentation helps your business save on costs is through benefits. Businesses are not responsible for providing benefits, such as health insurance and paid time off, to staff augmentation workers. He or she is in charge of covering those benefits on their own, you only pay for services rendered.
Improved productivity
When you decide to bring in skilled professionals through augmentation, he or she not only brings a new perspective to the new team but also higher productivity rates. Staff augmentation can provide businesses with highly skilled professionals who can complete projects more efficiently and effectively, improving overall productivity.
Lower turnover costs
Lowering turnover costs is becoming a very big expense for businesses today. The job market has seen a lot of changes over the last few years, and every change has a financial effect on businesses. Staff augmentation workers are typically not permanent employees, so businesses do not have to incur the costs associated with employee turnovers, such as recruiting, hiring, and training.
Scalability
Probably one of the biggest advantages of staff augmentation is scalability. Staff augmentation provides businesses with the ability to scale up or down their workforce as needed, which can save costs in the long run.
CONCLUSION
Staff augmentation is a flexible and cost-effective solution for businesses looking to manage their workforce needs without incurring the costs and risks of hiring full-time employees. By leveraging the expertise of external personnel, businesses can access specialized skills, improve productivity, and control labour costs. Additionally, staff augmentation provides businesses with the flexibility to adjust the size of their workforce as needed, reducing overhead costs and improving cost control.
Moreover, staff augmentation eliminates the need for businesses to invest in recruitment, benefits, and office space for additional employees, and reduces the risk of employee turnover. By working with a reputable staff augmentation provider, businesses can benefit from a wide range of cost-saving solutions and access to a pool of highly skilled professionals.
With global uncertainty today, augmentation is giving business owners a different option when it comes to keeping their operations going in a cost-effective way. The rise of remote employees has also been a big advantage. Business owners now know that they are not pegged to hiring in their area of operations only.
Are you thinking about bringing on board skilled professionals for a project? Contact us today and we’ll help you find the right person that matches your exact needs.
