How to Save Money with Staff Augmentation
In previous blogs, we’ve looked into what team augmentation is and explored how utilising a staff augmentation model can help you solve tech hiring challenges. To recap, an augmented team refers to an in-house team that’s been enhanced by adding specialist members from outside the organisation, thus allowing businesses to retain control and visibility while benefiting from key skills and knowledge to progress rapidly.
While the blogs we mentioned above focused on covering the basics and, latterly, on combatting the ongoing recruitment crisis that hit the U.K. last year, we thought it would be a good idea to look at some ways your business can save money through staff augmentation.
Labour costs are, on average, the most significant single cost to any business, averaging around 70% of all expenses across many companies. So naturally, then, maintaining a low payroll expenditure while retaining high productivity, competition, and staff happiness is a goal that any business should strive towards.
The Benefits of Staff Augmentation
From expediting the recruitment process, to saving expenditure on recruitment and training, to building a happier and more productive workforce, there are numerous benefits of staff augmentation.
When looking to recruit a staff member to fulfil a single resource demand, business leaders can often find themselves investing a considerable amount of time, energy and funds. In addition, steps such as market research and advertising, exploring and negotiating candidate expectations and running multiple rounds of interviews require complex cooperation between various departments putting an extra strain on schedules and budgets.
Businesses can, therefore, save money through staff augmentation thanks to the speed and ease of the process. In addition, it streamlines the recruitment procedure to ensure that companies have rapid access to skilled staff to fill the gaps in their workforce.
Save on facilities
While a larger business might not encounter difficulties maintaining the necessary facilities for its staff, this can be a considerable cost for smaller companies. With small businesses making up 99.2% of the UK’s total business population, millions of enterprises could benefit hugely from reducing the cost of their premises.
Rent can vary according to location, of course. For example, in Birmingham, office space can incur a monthly cost of up to £464 per person, while central London can see almost triple that price with an eye-watering £1,200 monthly charge per staff member. So, any way businesses can reduce the amount they spend on leasing facilities is a bonus.
One of the benefits of staff augmentation is that it brings this cost down significantly. By using an augmentation model, temporary, contract-based staff can work remotely from their homes or independent offices without exerting extra expenses on the company.
Reduced training expenditure
Hiring new staff often results in significant expenditures of both time and resources to ensure that the candidate has the necessary skills and knowledge to perform their role. Traditional recruitment also runs a greater risk of hiring an underqualified person for the role, which can result in reputational damage and a loss of efficiency, both of which can carry substantial costs.
This cost can be drastically reduced for proactive businesses thanks to the unexpected benefits of staff augmentation. Usually, augmented team members are sourced by third-party service providers and are hired by companies for their skills and expertise. This means remote employees can leapfrog training programs and be brought into a dedicated team using virtual onboarding.
Lower continuity costs
Unforeseen circumstances can have a significant impact on any business, sometimes positively but, more commonly, to their detriment. However, companies willing to adapt can find benefits in the adversity brought about by sudden changes. For example, the COVID-19 pandemic pushed millions into remote work, which, in the long term, resulted in numerous benefits.
One of the ways that staff augmentation can benefit your business is by adding another level of flexibility. Augmented workforces mean companies can reduce dependence on the rigid frameworks that might apply to the traditional employer bases, better allowing them to respond to unforeseen circumstances.
Tap into a well of experience
If you’re considering staff augmentation, chances are that your internal team either doesn’t have the capacity or the skillset to deliver the digital project you need. If limited in-house knowledge is the issue your business is facing, staff augmentation can help by giving you indirect access to an entire company’s-worth of digital expertise.
Broaden your recruitment pool
Historically, companies have been limited to hiring candidates who live in their commutable vicinity or are willing to relocate. However, staff augmentation has changed the game in this respect, as businesses can now access a global staff market with comparable ease. The primary advantage here is that it allows employers to engage the skills and services they need when they need them, further reinforcing the adaptability and flexibility offered by augmenting their workforce.
Another benefit of this aspect of staff augmentation is that it allows businesses to ensure their salaries remain competitive without struggling to accommodate for urban salary inflation.
Build a happier and more productive team
Since the boom in the popularity of remote working, companies are seeing upshots in productivity and satisfaction among their staff. So naturally this translates into hard financial benefits for the business as staff are more likely to go that extra mile when they feel comfortable, supported and happy at work.
This positivity is also often quantified, at least partially, by low turnover rates. By retaining solid relationships with existing augmented staff, businesses can reduce the likelihood of re-hiring for vacancies caused by staff leaving due to dissatisfaction, resulting in notable savings.
Augment your team with One Beyond
If you’re interested in moving towards an augmented staff model, we offer our own team augmentation service, which has been applied successfully with various clients, including Haymarket Media, Fine+Rare and Costa Express.
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