How start-ups can benefit from staff augmentation

Strong recruitment and effective talent retention are what separates good companies from great ones. This is particularly essential for start-ups, which tend to prosper in many different dynamics from those of well-established businesses. Many companies have been switching to a recruitment model called staff augmentation to address the challenges, which allows for much more flexibility than traditional methods.

In this article, you’ll learn about staff augmentation for start-ups and how you can use this strategy to elevate your team and increase your business’s operational efficiency.  

What’s staff augmentation

Staff augmentation is a type of outsourcing used to staff projects and meet the company's goals. It starts with assessing its current employees and identifying which different skills are necessary.

Unlike more conventional hiring methods, staff augmentation allows businesses to select only those candidates who meet their needs and downsize or expand their augmented teams as needed, benefitting your team on a temporary or long-term basis, whichever is required.

Employees sourced through staff augmentation are hired directly by the vendor, such as a gig platform, eliminating the cost and risk of hiring new full-time personnel.

Why is staff augmentation necessary for start-ups

Because start-ups face different challenges than other companies, the recruitment process must reflect those gaps and help the business better meet their needs. Staff augmentation is especially beneficial for start-ups for the following reasons:

Productivity

In contrast to having an in-house team that can manage multiple projects simultaneously, staff augmentation allows for greater productivity because employees are entirely focused on a single project. Working for a single customer and adhering to their large vision entails a higher drive and commitment.

Costs

The cost structure of staff augmentation is highly transparent. You won’t be responsible for administrative or organizational costs, such as office space, workstations, or other facilities. You simply pay the price, and the vendor takes care of the rest, allowing you to focus on your core business activities.

Communication

When you outsource a team, you may rest assured that the vendor will keep track of every step. However, you have the authority to assign work, schedule sprints, and ultimately govern the process using corporate project management tools. At the same time, the employees will solely report to you because they will be in constant contact with you.

How start-up team-building is different

With all the benefits of staff augmentation, you might be wondering what problems it addresses and how start-up hiring makes it necessary to improve the recruitment methods used for decades in many multi-million companies. 

Here are 3 reasons why start-up team-building is unique:

Leaner teams

In start-ups, the hierarchy is more flat compared to bigger organizations. With that, employees will often report directly to the CEO rather than a long chain of managers and higher-ups. Staff augmentation takes advantage of the simplicity of the communication process in start-ups. It allows employers to stay in touch with their team members much more accessible, increasing project efficiency.

Flexibility

Start-ups need to stay flexible to remain in the lead. Staff augmentation allows for faster hiring and easier layoffs because of the type of contract between the parties involved. It means that employees who were once essential to the company's success might not be required for a week from now as the direction changes or the other way around – new employees will be needed urgently to support the team’s current efforts.

Talent pool

Some people prefer working for start-ups because of the culture those kinds of companies are known for. On the other hand, others prefer established companies as working for start-ups carries much more risk. With staff augmentation, the talent pool is used to change their employers quickly (and often even working for multiple companies at the same time), meaning that they appreciate the start-up landscape.

How can start-ups benefit from staff augmentation

Many start-ups rely on conventional hiring methods, but more and more companies are slowly switching to the staff augmentation model. Here are 3 ways it’s beneficial for your start-up company to also consider the change:

Hire as you want

One of the most significant advantages of staff augmentation is its adaptability, enabling businesses to hire individuals to meet their immediate needs. Companies can temporarily replace permanent staff with competent specialists to meet the needs of the hour. This flexible hiring avoids the extra costs of permanent hiring, such as the employee provident fund and health benefits.

It bridges the gap between the demand for professional abilities and the supply of such skills cost-effectively and efficiently. On the other hand, it allows specialists to operate on a project-by-project basis. You can only work on projects that you like and of high quality. It results in a win-win situation for both sides, with mutual gains.

Have more control

Unlike having an in-house team, which transfers all aspects of a project to an external entity, the benefits of staff augmentation ensure that only human resourcing is outsourced to a third party. While businesses benefit from the expertise of suppliers, they maintain control over their work and management. 

Thanks to this management control, firms can keep a stranglehold over their projects and develop them in any way they choose. Parent firms are frequently excluded from project management and execution when outsourced tasks. Staff augmentation prevents this anomaly by allowing parent companies to make the final decision.

Test candidates

Flexible hiring enables businesses to grow their operations on a trial basis without committing to a full-time workforce. Often, companies want to grow their enterprises and take advantage of the current market conditions. However, the associated risks of failure and investment drowning act as impediments to such expansion. Staff augmentation provides additional opportunities for companies wishing to expand by allowing them to employ on a project basis to test their acceptability in new markets.

Aside from growth, such flexible staffing allows businesses to adjust to changing market conditions. The market demand is rapidly changing as Millennials acquire new talents and proficiencies daily. Companies that are unable to adapt to such changes will eventually fail. As a result, staff augmentation allows businesses to be more responsive. It enables them to respond to changing conditions by meeting new demands with a project-specific staff.

Augment your team with Manatal

It doesn’t matter how you recruit people for your next project – doing it manually is highly time-consuming, and time efficiency is vital for fast-paced companies like start-ups. Luckily, there are tools available that can make this process much easier. Here’s how:

Save time

Manatal applicant tracking system saves the time spent on administrative activities, allowing your recruiters to focus on more vital tasks. Only a few clicks are required to complete tasks like posting available positions on job boards and social media sites, sending follow-up emails, and sorting resumes and applications.

It also keeps track of applicant responses and even sends reminders, allowing you to save time and gain a clearer image of all prospects on one simple dashboard.

Enhance candidate experience

Manatal helps applicants apply quickly and easily because it provides step-by-step instructions to all candidates, from presenting the role itself to adding resumes, portfolios, and other relevant papers.

The procedure and platform create a lasting impression of the organization. It virtually acts as virtual support, answering any inquiries without the need to send emails to the recruitment team.

Resume database management

Manatal is an excellent tool for storing and retrieving resumes, as well as keeping the database relevant and valuable. Candidates' data and applications are easily accessible and can be evaluated to make better decisions. With comprehensive filters, an ATS can make it simple to track apps. It saves time and allows businesses to reach a larger number of potential candidates, and makes it simple to post vacant positions on job boards and social media.

Start your free trial with Manatal ATS

Start augmenting your staff with Manatal ATS today. Sign up for your free 14-day trial by clicking here and responding to your industry's challenges with the best people on your team.