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What Is Staff Augmentation?

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Pros & Cons of
Staff Augmentation

Staff augmentation, like any organizational strategy, comes with its own list of pros and cons. It’s up to individual hiring managers and project managers to determine whether staff augmentation is the right model for their specific needs. The following table may provide some guidance
Pros Cons
Augmented staff can rapidly understand and contribute value to a project. Some projects demand a deep level of contextual and institutional knowledge. In such cases, staff augmentation can lead to extended ramp-up periods and increased costs.
Companies can access specific skill sets for individual projects without the need to hire permanent employees. Not ideal for long-term projects or skills required on an ongoing basis. For projects lasting more than two years, the risk of augmented staff turnover is higher.
Helps balance workload fluctuations within an enterprise. For instance, after the 2007-2009 recession, Toyota minimized layoffs by increasing its flexible workforce by 10-20%, creating a buffer for future uncertainties. Increased reliance on third-party organizations for talent can pose risks to sustainability planning.
The workforce can be scaled up or down as needed, similar to how retail businesses hire seasonal staff.  
Staff augmentation serves as a “trial period” for potential full-time hires, allowing the staffing agency to absorb risks related to a possible mishire.  

Types of Staff Augmentation

When considering staff augmentation, it is important to understand the different types:

Category Description Examples
Commodity You need reliable workers to perform a task, but they don’t need a specific skillset. Basic factory or warehouse work, retail, events, and manual labor
Skill-based You require certain skills (typing, spreadsheet use, multi-lingual), but the relative level of skill is not critical. Clerical work, data processing, transcription, basic copywriting
Highly-Skilled You require more advanced skills that are only attainable via significant training and experience, and level of skill is important. Software engineering, contract law, brand design

Types of Staff Augmentation Services

There are also many different options when it comes to engaging staff augmentation talent. Selecting the right one depends on the specific needs of your organization.


Category Description Talent Types Best For Strengths Challenges Examples
Traditional Staffing Providers Traditional providers of temporary labor Skill-Based, Commodity Non-critical projects where a high level of skill is not required Flexibility Finding highly-skilled talent can be difficult TEKsystems, Experis, Adecco
Master Vendor Staffing Providers Large-scale staffing programs run by a single vendor Commodity Highly commoditized labor needs where low cost and scale are most important Low Cost, Scale Highly commoditized, talent quality can be inconsistent Manpower, Kelly, AeroTek, Randstad
Specialized/Boutique Staffing & Consulting Firms Smaller firms or agencies that focus on specialized, highly-skilled talent Skill-Based, Highly-Skilled When you need specialized skillsets and highly skilled talent Quality Generally costly, with high overhead PointB, Patina Solutions
Gig Platforms Online platforms that provide instant access to independent workers Commodity, Skill-Based Task-based needs for more commoditized skillsets Speed, Flexibility Large marketplaces make it difficult to distinguish between candidates, talent is generally geographically distributed Upwork, Freelancer.com
On-Demand Talent Platforms Online platforms that provide access to curated, highly-skilled talent Highly-Skilled Highly-skilled talent deployed quickly Speed, Flexibility, Quality Talent is generally geographically distributed (remote) BTG, Toptal
Direct Independent Relationships Independent contractors engaged directly by organizations Skill-Based, Highly Skilled Needs that can be filled by known professionals Quality, Low Overhead Difficult to find reliable individuals, difficult to maintain an active relationship TalentNet, Workmarket

Choosing the Right Staff Augmentation Model

Many organizations use a combination of different providers based on their specific needs. When considering staff augmentation, it’s crucial to define your objectives and identify your top priorities. For instance, if you’re seeking an expert in machine learning—a highly sought-after skill today—focusing primarily on cost may not be practical. Similarly, if you need 100 individuals for a task that can be easily taught, prioritizing a high skill level isn’t necessary. With a variety of staff augmentation models available, it’s important to carefully evaluate the pros and cons of each before making a decision.

Staff Augmentation: A Cross-functional Strategy

Staff augmentation is a powerful strategy that organizations can use to enhance agility and adapt to evolving enterprise needs. This model is increasingly adopted across various industries, covering roles from R&D to Operations, HR, Finance, and beyond (as illustrated in the figure below). Notably, industry leaders like Google have recognized its value, such as through their 2017 acquisition of Kaggle, a freelance and contract network of data scientists. The importance of staff augmentation for enterprises today and in the future is undeniable.


Function Do Not Use Alternative Labor Use Extensively Limited/Rare Use
Supply Chain/Procurement 62% 27% 11%
Sales 62% 26% 12%
Finance 56% 32% 13%
Customer Service 56% 27% 17%
HR 56% 36% 11%
Innovation/R&D 51% 34% 15%
Marketing 49% 36% 15%
Operations 42% 33% 25%
IT 29% 38% 33%