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Replacement or Augmentation: Which Staff Leasing Option Fits Your Outsourcing Goals?

March 8, 2017 Claire Ponsaran
Replacement or Augmentation: Which Staff Leasing Option Fits Your Outsourcing Goals?

A staff leasing agreement with an offshore service provider normally involves hiring and managing a team of skilled workers from another country. These workers will become your support staff, secondary to your onshore team, or they’ll become your main staff, in case you can’t hire in-house employees for whatever reason.

But, the decision to hire them for staff augmentation or for staff replacement will depend on your outsourcing goals and the size of your staffing needs. Here are some tips to consider when making that staffing decision.

1. Ask yourself, “Has your workload increased? If so, is the workload likely to continue or is it just a temporary increase?”

If the need for extra help is just temporary, then staff augmentation through outsourcing is your best option. Otherwise, hire support staff for the long term. Outsourcing the work to a service provider will ease your workload.

It does not matter whether it’s for a few months or for many years. Staff leasing will not impose the same financial burden on you as when you hire new employees. With new workers, you’ll have to accommodate them with a work desk and new equipment, and a good benefits package to boot.

Outsourcing to an offshore provider is even better because you’ll have a wider pool of talented people to choose from. This increases diversity in your human resources, and this often leads to innovation as people with different backgrounds can bring valuable insights from varying perspectives into their work.

2. Staff replacement is inevitable when you need to fill up seats ASAP or when you have limited resources.

It’s difficult for small-to-medium-sized businesses to find replacements immediately when employees leave. Certainly, the time and money that will be spent on searching for the right people can be better used in financing sales and marketing campaigns to find new leads and nurture customers.

Staff replacement through outsourcing cuts down the time it takes to find new people to work for you immediately. Your time is better spent on higher value work. Don’t waste time in sifting through piles of resumes and interviewing each candidate. You have better things to do than screen them through tests and interviews.

Some companies have a waiting list of qualified employees who are trained and ready for work on the day you hire them. Other firms offer custom staffing solutions that take only 3 days to accomplish before you begin the onboarding process for clients and their new hires. The latter group of outsourcing firms will have a better chance of finding you the people you need. They not only have the qualifications you require but they’re also a good fit for you and your company.

3. If you’re looking to hire new employees with the same skills set as the ones who left, then staff replacement is the right choice.

Obviously, you’ll be looking for new employees who can replace the skills your company may have lost from retrenchment or who can bring in new skills that may help fill in the gaps in your company’s human resources. It’s easy to hire people with basic skills for routine low-skilled work. But, it’s a challenge to find qualified technically skilled workers with the right qualities you’re looking for. This is especially true when you have a small business or a start-up that is constantly in need of funding.

Staff replacement through outsourcing can give you access to highly skilled workers who are not limited by their geographical location or their cultural and language orientation. Rather than hire home-based workers with little experience and a not-so-reliable internet connection, look for a reputable outsourcing firm, preferably one that’s been highly recommended to you by a friend or business colleague. If you’re going offshore, choose an outsourcing provider you can trust that’s located in a country that has been known to produce a highly educated, English-speaking workforce year after year.

4. Consider the impact on your business when you hire new employees vis-a-vis when you outsource to a trusted service provider.

Thinking about hiring a new employee either to replace someone who left or to add to your roster of workers? You’ll have to consider a few things when you hire someone for full-time work. You have to consider the minimum wage he or she will receive. Think of the payroll tax and required benefits you’ll be paying. And, think of the implications of a new worker’s compensation.

Now, compare these expenses to the costs of outsourcing the work to a service provider. All you will be paying for are the costs of retaining quality employees. None of the additional overhead costs will be billed to you. It’s that simple.

Looking to replace workers? Outsourcing lets you hire for skills and attitude without spending a lot on recruitment and retention. You also don’t need to involve yourself with the day-to-day management of your outsourced staff.

In fact, many outsourcing companies provide actively managed services. This arrangement allows you to revel in the small victories of your staff. And, you get to escape the pain of dealing with trivial stuff. They’re so trivial you don’t need to know what they are.

Does your organization have a flat structure? Is your workplace too small for additional workstations? Then, staff augmentation is your best recourse.

You’re not replacing anyone when you augment your staff through outsourcing. Instead, you’re adding employees with fewer risks. You don’t need to change your organizational hierarchy. You won’t even have to modify your pay structure for your new hires.

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