Businesses of all types have delved into staff augmentation to keep up with production gain. This type of outsourcing strategy is becoming one of the hottest business trends this 2022.
By definition, staff augmentation is having an agreement wherein an employer collaborates with an intermediary organization to hire its employees. Between 1992 and 2017, the number of people working for employee leasing firms soared up to 682% from 341,884 to 2.7 million. Both parties have concluded that this would be applicable for temporary or long-term projects. In other words, the employer contacts a third-party group that can support projects and manages needs on a seasonal basis. The leasing company and the business owner share employment responsibilities for the resources.
“Staff augmentation” is often used interchangeably with “outsourcing”; however, the two differ from each other. Staff augmentation and outsourcing are both business delivery models between a client and a provider. Both of these providers take care of the clients’ needs and wants. However, as a leasing company, they help clients look for potential employers to work for them, meanwhile, as an outsourcing company, they help clients handle direct services.
There are vital preparations needed to arrange when it comes to staff augmentation. Some of the processes involve a series of consultations, looking for a company that offers the services needed, and giving support to the resources.
To guide you further into staff augmentation, here are some of its advantages:
1. Introduction to industry experts
Staffing leasing companies can help you look for workers that have highly specialized skills in the needed field. Through staff augmentation, you can quickly fill existing skill gaps with outside talents. Furthermore, the company is exposed to more skillful resources thus improving quality work.
2. Low-cost
Instead of hiring and training your own employees, you can lease staff from an outsourcing company with lower costs. Moreover, administrative costs are cut, as their work duties will come from the employer. This allows you to hire nonpermanent workers, cutting the cost when compared to employing full-time employees, which can be high-priced. In summation, you only pay for what you need for as long as you need it.
3. Fast employment
When looking for staff to work on project-based or long-term outputs, providers can start recruiting once clients take note of their needs. Due to their large network of available workers, staffing agencies can sometimes supply you with a qualified candidate within a few days or less.
4. Work efficiency
Another advantage of staff augmentation is that work can be done remotely from any place around the world. To add, 40% of staffing employees work in higher-skilled occupations. Percentages are as follows: thirty-six percent (36%) Industrial; twenty-four percent (24%) Office–Clerical and Administrative; twenty-one percent (21%) Professional–Managerial; eleven percent (11%) Engineering, Information Technology, and Scientific; and eight percent (8%) Health Care.
5. Ease administrative burdens
Leasing employees alleviate many aspects of recruitment, such as the need to advertise job openings, review resumes, interview candidates, or run background checks. The third-party company handles a wide range of business functions, such as administrative and human resources tasks. In addition, the third party will take care of the other processes like hiring resources depending on the agreement, as requested by the employer.
Staff augmentation is beneficial to a business depending on the needs and wants of the client. When taking the approach to leasing, there are certain processes that would be followed. Once an agreement has been reached, then the third-party group could start on the tasks to meet project objectives on a contractual basis.
For the best quality offshore employee leasing services, contact us through connect@ripeconcepts.com. 🍊
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