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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
ProsCons
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:

CategoryDescriptionExamples
CommodityYou 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-basedYou 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-SkilledYou 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.


CategoryDescriptionTalent TypesBest ForStrengthsChallengesExamples
Traditional Staffing ProvidersTraditional providers of temporary laborSkill-Based, CommodityNon-critical projects where a high level of skill is not requiredFlexibilityFinding highly-skilled talent can be difficultTEKsystems, Experis, Adecco
Master Vendor Staffing ProvidersLarge-scale staffing programs run by a single vendorCommodityHighly commoditized labor needs where low cost and scale are most importantLow Cost, ScaleHighly commoditized, talent quality can be inconsistentManpower, Kelly, AeroTek, Randstad
Specialized/Boutique Staffing & Consulting FirmsSmaller firms or agencies that focus on specialized, highly-skilled talentSkill-Based, Highly-SkilledWhen you need specialized skillsets and highly skilled talentQualityGenerally costly, with high overheadPointB, Patina Solutions
Gig PlatformsOnline platforms that provide instant access to independent workersCommodity, Skill-BasedTask-based needs for more commoditized skillsetsSpeed, FlexibilityLarge marketplaces make it difficult to distinguish between candidates, talent is generally geographically distributedUpwork, Freelancer.com
On-Demand Talent PlatformsOnline platforms that provide access to curated, highly-skilled talentHighly-SkilledHighly-skilled talent deployed quicklySpeed, Flexibility, QualityTalent is generally geographically distributed (remote)BTG, Toptal
Direct Independent RelationshipsIndependent contractors engaged directly by organizationsSkill-Based, Highly SkilledNeeds that can be filled by known professionalsQuality, Low OverheadDifficult to find reliable individuals, difficult to maintain an active relationshipTalentNet, 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.


FunctionDo Not Use Alternative LaborUse ExtensivelyLimited/Rare Use
Supply Chain/Procurement62%27%11%
Sales62%26%12%
Finance56%32%13%
Customer Service56%27%17%
HR56%36%11%
Innovation/R&D51%34%15%
Marketing49%36%15%
Operations42%33%25%
IT29%38%33%