5 Reasons Companies are Reluctant To Use Staff Augmentation
Finding the right IT talent is critical to the success of your project. But, in many cases, organizations struggle to hire the right candidate with the perfect technological and cultural fit for a project. You cannot compromise on expert qualified seasoned veterans who bring lots of knowledge and expertise if you want to meet your deadlines and achieve a quality result.
Why are companies reluctant to use IT staff augmentation resources?
- Cost - augmenting staff with external contractors or consultants can be more expensive in the short-term than hiring full-time employees. However, this may be offset by the long-term cost savings of avoiding additional benefits and overhead costs associated with full-time employees.
- Quality of work - some companies may be concerned about the quality of work produced by external contractors or consultants, particularly if they are not familiar with the company's business processes or culture.
- Integration challenges - integrating augmented staff with existing teams and processes can be challenging, particularly if there are cultural or language barriers to overcome.
- Security concerns - augmenting staff with external contractors or consultants may raise security concerns, particularly if they are given access to sensitive company data or systems.
- Compliance issues - some companies may be concerned about potential compliance issues related to the use of external contractors or consultants, particularly if they are working on regulated projects or in regulated industries.
While there may be some reluctance among companies to use IT staff augmentation, it can be an effective way to supplement existing teams and resources, particularly for short-term or specialized projects.
Staff augmentation allows companies to access a broader pool of talent, regardless of location or availability. This can help companies bring products to market faster and more efficiently by leveraging the expertise of external specialists, without the need to hire additional permanent employees.
The COVID-19 pandemic demonstrated that the physical location of a workforce isn’t as important as once thought. With companies now effectively managing remote teams - staff augmentation is more accepted as not everyone on a project needs to be under one roof.
According to a recent PwC survey - 83% of all employers indicated that the shift to remote work had been successful. This success has been attributed to several factors, including the availability of digital collaboration tools, improved communication & trust between managers & employees, increased flexibility & work-life balance offered by remote work arrangements.
How to address key concerns companies have with hiring resources under a staff augmentation model
Addressing key concerns that companies may have with hiring resources under a staff augmentation model can help increase their confidence in the effectiveness of this approach. Here are some strategies to address common concerns:
- Cost - get a transparent cost breakdown and compare staff augmentation vs. other hiring models can help companies make informed decisions. It also allows flexibility to scale up or down resources as needed and avoid the costs of hiring and training full-time employees
- Quality of work - thoroughly vet and screen external staff before hiring, ensure they have the necessary skills and experience to meet project requirements. Provide clear project guidelines, expectations, and feedback to ensure that all staff are aligned and working effectively towards project goals
- Integration challenges - provide clear communication of project goals and expectations and invite the staff augmentation resources to regular team-building activities to build collaboration and knowledge-sharing. Use collaboration tools and platforms to help streamline communication and facilitate effective teamwork.
- Security concerns - implement security protocols and access controls to protect sensitive company data and systems. Provide security training and monitor to ensure that all staff understand and adhere to security best practices.
- Compliance issues - ensure that external staff are properly vetted and trained on compliance requirements, and that appropriate compliance controls and reporting mechanisms are in place.
Recent staff augmentation trends:
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Most popular industries - staff augmentation is widely used across a variety of industries, with the most popular being IT, healthcare, financial services, and manufacturing.
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Preferred hiring method - according to a survey by Upwork, 57% of companies prefer to use staff augmentation as a hiring method, compared to other methods such as full-time hiring or outsourcing.
Not sure where to start - no problem we have provided specialized IT staff augmentation resources to numerous clients. Give us a shout at Poeta Digital - it will be the best thing you have done today.