The key takeaway from Gartner’s Emerging Risks Survey is that there are too many competitors vying over a limited talent pool. Smaller businesses within the IT sector are particularly hard hit since they lack the resources needed to engage in costly recruitment drives. Couple this with the fact that the majority of businesses are unable to offer the same perks as large multinationals and industry leaders, and you have a severe workforce problem on your hands.
Fortunately, outsourcing strategies such as staff augmentation help companies bridge the talent gap. In this blog, we’ll take a look at how staff augmentation helps IT businesses attract top talent.
What is Staff Augmentation?
In a nutshell, staff augmentation is the process of outsourcing workers with specific skills or roles, usually on a temporary basis. It helps businesses seek specialized labor for completing large projects. As the level of specialization rises, hiring full-time employees with the required skills becomes an increasingly costly task. By handing over the hiring processes to a vendor, businesses experience higher sustainability and profits.
How it Benefits a Company
As mentioned above, the lack of talent causes hiring costs to skyrocket. According to the Center for American Progress, the costs of replacing a minor to mid-range position employees range between 16-20% of their annual salary. For certain executive-level positions, the number can go high as 213%!
By engaging in staff augmentation, businesses only have to pay employees for the time they put in the work. Recruitment expenses are zero and because the workers are recruited based on a particular skill set, there is little need for on-the-job training or time required to acclimate to the position.
Even for businesses that have the required capital, hiring a new (read: suitable) employee isn’t something that happens overnight. According to Glassdoor, it takes around 23 days for the entire hiring process to complete.
Partnering up with a firm that offers staff augmentation services will bring in qualified personnel in just a few days. This is particularly beneficial for businesses that experience high rates of voluntary turnover i.e. employees leaving the company for reasons other than health or retirement.
All in all, staff augmentation is an ideal way of bringing talented IT workers on board without engaging in costly recruitment drives. EX2 Outcoding is a software IT development firm that offers IT staff augmentation services. They’ve been in business for nearly 2-decades and have helped countless companies attract top talent. Contact us today for more information.