A lot of business owners experience unnecessary levels of stress when hiring employees. Tasks such as posting job openings, screening applicants, going through each candidate, individual interviews, and salary negotiations are simply things you never thought youll have to handle when running your own business. For most start-up and small businesses that donât have their own human resources, this can be quite a pickle.
Thankfully, there are many options available today that aim to assist business owners and company administrators with these needs. Staff augmentation is on top of this list. This model of work delivery is beneficial for those who need the manpower but do not have the time, funds, or energy to do the hiring themselves. Read on to learn more about why this outsourcing strategy can immensely help you and your budding business.
Human Resources Might Not Speak the Language
If you Do have an HR department, good for you. However, if you are in an industry that requires certain skill sets that need professional understanding, this might be a problem. For example, if you are running an IT company, a medical or a diagnostic clinic, or an accounting firm you are in need of skilled persons who have been educated and trained to accomplish specific jobs. If your HR department is not well-versed with the context of your industry, it is possible that they commit hiring errors.
This can be avoided by going through staff augmentation instead. This way, you are sure that you get professionals that are best-suited for your workforce. You wonât have to worry about credentials and staffing requirements anymore. All you need to do is watch them work and see the job done in the time period you specified.
Be Prepared for Cost-Effective Solutions
One of the biggest reasons why companies prefer this method of hiring contract workers is the magnitude of savings, both in money and time. Not only do you eliminate the long and tiring process of hiring yourself, you also get rid of expendable costs. Such costs include on-boarding expenses such as job advertising and administrative costs to give you an idea, the average cost of hiring a new employee rests at $18,000 to $19,000 per person.
You can offset these expenditures with staff augmentation. Instead of making them initial costs, you factor them in into the overall costs. There will be no need for recruitment, job advertising, going through applications, and negotiating when you finally land that one right person. Staff augmentation services include background checks, skills tests, and even drug screening â which means you need not bother yourself with these issues anymore. You immediately enjoy their services while resting assured of their competence level and qualification for the job.
Another benefit is saving money by not having to give out regular pay checks. Salary is just one of the many costs associated with hiring a new employee. When a worker joins your team, you also are expected to pay for other costs: benefits (which go up as high as 25% of payroll costs), taxes, and social security. In the event that you no longer need the services of that person, you end up investing more money compared to the services that he or she has rendered.
Staff augmentation lets you budget your funds more efficiently. Even though the rates are initially higher than hourly wages, think of your savings in the big picture: the overhead costs are already rolled into their rates.
Reduce Your Risk
With staff augmentation, you lower your risk and instead increase your flexibility. During peak seasons, you can limit overtime costs (at the same time, ensuring that none of the employees are burned out). When the work load slows down, you can end the contract whenever you want and go back to normal production.
Similarly, if you find that an outsourced employee simply is not the right fit for your company, you wouldnt have to go through tons of HR meetings or arduous disciplinary actions. Instead, you can promptly ask for a replacement. There is no need for a severance cheque. Your production or operations will not be disrupted.