Most startups’ budgets for recruiting and maintaining full-time talent are often prohibitive. The looming recession will further strain the company’s hiring budget, affecting your growth plans. So, you must take temporary relief strategies during such economic times to ensure that you survive and thrive while keeping an eye on the overall business goals.
In the current economic climate, tech companies are turning to offshore hiring solutions such as staff augmentation and temp hiring. Both strategies let you hire new staff on a temporary basis while lowering overhead costs and achieving better results than traditional recruitment methods. However, staff augmentation offers your startup more benefits compared to temp hiring. Read on to learn how a nearshore staff augmentation solution like TECLA can help with your short- and long-term hiring needs.
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A Brief Overview of Temp Hiring
Temp hiring or temporary staffing is a tactical answer when the market needs to grow exponentially, and the in-house resource is overflowed. The temp worker fulfills all the responsibilities of regular employees. During 2020-2021 there was a considerable increase in temp hiring because of the explosive demand for tech services during global lockdowns. Temp hiring also:
- Gives your startup the flexibility to scale your team on demand.
- Provides you with expertise for scenarios outside your business’s normal work range.
- It is a cost-effective way to replace employees on leave and sabbaticals.
- More importantly, you won’t have to be an employer responsible for payroll and taxes, worrying about benefits, especially during an economic downturn.
But hiring temps isn’t a cure-all. It’s only a short-term fix for resolving staffing deficiencies and could negatively affect your overall business.
A Brief Overview of Staff Augmentation
This outsourcing model uses temporary external tech talent to grow a department’s or startup’s capacity. So, basically, you may bring in software developers as an on-demand service, and they will fill tech stack gaps or expertise holes to build or support continuing projects. Hiring staff augmentation firms like TECLA means you have access to top nearshore talent that you can hire and onboard fast without the hassle of worrying about legal, HR, payroll and taxes.
A SaaS startup may need to hire a team of software engineers for a critical upgrade to augment its internal developer team. But, this may be hard because the company lacks the resources necessary to recruit, vet and hire talent. Also, with the current developer shortage, internal HR may find it hard to secure the best talent within a short period. So, the company can work with an offshore staff augmentation company. They can hire Y developers and buy X hours of their time monthly. If the upgrade needs more talent or time, the startup can quickly request more developers or buy more hours, providing the resources necessary to finish the upgrade successfully.
Staff Augmentation vs. Temp Hiring: How they are Different
Here are the differences between staff augmentation and temp hiring:
- Temporary staffing is a band-aid solution to resource deficits. In contrast, staff augmentation is a strategic approach that resolves resource gaps within an existing workforce.
- Temp hiring is resource and investment extensive. It burdens your internal HR, who still have to recruit, vet, hire, train, and probably retrain the temps, only to release them once volume declines in off-seasons. Staff augmentation services seamlessly incorporate tech talent into your existing house teams.
- With temp hiring, there’s an extra cost burden not realized in terms of loss of management focus and activity time by the temps. Onboarding augmented staff is straightforward, so you focus on company goals without losing time.
- Temp hiring isn’t relational-based because you work with the contractors briefly, after which they move on to their next gig. However, working with a staff augmentation agency allows you to cultivate a relationship where there is knowledge of your account and organizational needs.
- Temp hiring is a quick fix for solving hiring shortages, while staff augmentation provides dedicated teams for your tech needs, letting you supplement internal teams as needed throughout the year.
Why You Should Hire A Staff Augmentation Company for A Strategic Edge
The IT outsourcing market was expected to amount to roughly $413.7 billion by 2021. So, it is evident that staff augmentation is now common practice for companies globally, including tech startups. The benefits of hiring a software team augmentation service include the following:
Partner with TECLA and Accelerate Your Growth on Demand
Here’s why you should trust TECLA as your staff augmentation partner of choice:
- TECLA has over 40,000+ tech professionals across 18 countries in LatAm, and every single one of them is fully committed to your company and managed by your product managers.
- Hiring our services means you focus on work while we handle contracts, payments, legal, HR, and talent retention.
- Start receiving tech talent profiles within 48 hours. Then, interview top candidates in LatAm and grow your team in a few days.
- High-impact results with short ramp-up times.
- Access to senior-level talent on-demand. Scale up and down as needed with complete flexibility.
Contact us today to augment your staffing needs with our remote teams from LatAm.
FAQ on Why Offshore Staff Augmentation is Better Than Temp Hiring